Department of Labor and Regulation

Title - Wage & Hour

Minimum Wage

The current minimum wage for non-tipped employees in South Dakota is $7.25/hour.

See South Dakota Codied Laws on fair labor standards laws, 60-11.

This law does not cover all employees, however. Under the federal minimum wage law, there are two categories of coverage (enterprise and individual).

Enterprise coverage applies to any business with an annual gross sales volume exceeding $500,000. Also included are all schools, all public agencies and all businesses that operate a hospital or facility which cares for and houses the elderly or people with physical or mental disabilities. Federal minimum wage law covers all employees of schools, agencies or businesses in the enterprise category.

Businesses not covered by the enterprise category are likely to have employees who are covered under the individual category. An employee is covered on an individual basis, if that individual is engaged in:

  • Interstate commerce.
  • Production of goods for interstate commerce.
  • Handling or working on goods or materials that are moving in interstate commerce.
  • An occupation that is closely related or directly essential to the production of goods for interstate commerce.

This category also covers those who work in communications or transportation, or who regularly use the postal system or telephone for interstate communications. Individuals who accept checks and credit cards are involved in the interstate banking system and would probably be covered, as would an individual using the U.S. Postal Service to ship or order goods anywhere outside the state's boundaries.

Tipped employees have a minimum cash wage of $2.13/hour. However, the employer must make sure that the employees receive no less than the minimum wage and must keep a record of all tips received by employees.


The information provided on this Web page should in no way be considered legal advice. For specific information about your legal rights, you should consult your personal attorney. If you have a general question, contact us.

South Dakota Department of Labor and Regulation
Division of Labor and Management
700 Governors Drive
Pierre, SD 57501
Phone: 605.773.3681

Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184