South Dakota Minimum Wage Laws




Minimum wage

South Dakota’s current minimum wage is $8.55. SD Department of Labor and Regulation: Minimum Wage

South Dakota employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.

If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage.



Tip minimum wage

South Dakota’s minimum wage for tipped employees is $4.275.

South Dakota defines a tipped employee as an employee who is engaged in an occupation in which the employee customarily and regularly receives a minimum of $35 per month in tips or other considerations. If an employer chooses to pay the tipped minimum wage, it must also ensure that the tipped employees receive the standard minimum wage when tipped wages earned are combined with tips received. If a tipped employee is not paid the standard minimum wage when tipped wages earned are combined with tips received, the employer must pay the employee the difference. Babysitters and outside salespersons do not qualify as tipped employees. Employees working for an amusement or recreational establishment, organized camp, or religious or nonprofit educational conference center do not qualify as tipped employees if one of the following criteria apply:

  • the establishment, camp, or center does not operate for more than seven months in any calendar year; or
  • during the preceding calendar year, the average receipts of the establishment, camp, or center for any six months of the calendar year were not more than thirty-three and one-third percent of its average receipts for the other six months of the year.

S.D. Statute 60-11-3.1.




Tip pooling and sharing

South Dakota minimum wage laws does not address tip or gratuity pooling or sharing.



Subminimum wage

Employees with disabilities

South Dakota minimum wage laws allow employers to pay employees with developmental disabilities a subminimum wage rate that is less than the standard minimum wage if they obtain a permit from the South Dakota Department of Labor and Regulation to do so. RI Statute 28-12-9.S.D. Statute 60-11-5.



Trainees

South Dakota minimum wage laws allow employers to pay trainees under the age of 20 years of age a subminimum wage rate of $4.25 per hour for the first 90 consecutive calendar days after the employees begin working for the employer. An employer may not displace any employees being paid the standard minimum wage in order to hire an employee eligible to be paid the subminimum wage.S.D. Statute 60-11-4.1; see also 29 USC 206



Apprentices

South Dakota minimum wage laws allow employers to pay apprentices a subminimum wage rate that is less than the standard minimum wage if they obtain a permit from the South Dakota Department of Labor and Regulation to do so. RI Statute 28-12-9.S.D. Statute 60-11-5.



Learners

South Dakota minimum wage laws also allow employers to pay persons learning the business or work in which employed a subminimum wage rate that is less than the standard minimum wage if they obtain a permit from the South Dakota Department of Labor and Regulation to do so. RI Statute 28-12-9.S.D. Statute 60-11-5.



Student learners

South Dakota minimum wage laws also allow employers to pay persons learning the business or work in which employed a subminimum wage rate that is less than the standard minimum wage if they obtain a permit from the South Dakota Department of Labor and Regulation to do so. RI Statute 28-12-9.S.D. Statute 60-11-5.



Student workers

South Dakota minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage unless the employee qualifies as an apprentice or learner as discussed above.