South Dakota Minimum Wage Laws – 2022


Minimum Wage

South Dakota’s current minimum wage is $9.95. This was effective January 1, 2022. 

Each year, South Dakota has a minimum wage increase determined by any percentage increase in the cost of living.

The change in the minimum wage is announced by October 15 each year; see more information at SD Department of Labor and Regulation: Minimum Wage.

South Dakota employers must also comply with federal minimum wage laws and the mandated minimum wage requirement, which currently sets it at $7.25.

Suppose an employer chooses to pay employees hourly minimum wage. In that case, the employer must pay those employees in accordance with the minimum wage requirement, 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 $4.975. Non-tipped employees receive the regular rate for hourly employees. 

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 that may result in additional wages.

 If an employer chooses to pay the tipped employee minimum wage, it must also ensure that the tipped employees receive the standard minimum wage when tipped wage for employees 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. 

Note that babysitters and outside salespersons do not qualify as tipped employees.

Also, 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.

To get more information, see SD Statute 60-11-3.1


Tip Pooling and Sharing

South Dakota minimum wage laws do 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.

This is also considered as a courtesy to employers. 

Check SD Statute 60-11-5 for more information. 


Trainees

South Dakota minimum wage laws allow employers to pay trainees (as training minimum wage) under the age of 20 years of age a subminimum youth minimum 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.Check SD Statute 60-11-4.1 ; see also 29 USC 206 for more information.


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.

In the case of minors below the age of 20, a training minimum wage is allowed. The amount is $4.25 per hour and applies to the apprentice’s first 90 days as an employee.

See S.D. Statute 60-11-5 for more information.


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. This is in line with the stipulations found in 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.

This is in line with the stipulations found in S.D. Statute 60-11-5.

For vocational or full-time students, they are entitled to 85% of the minimum wage rate provided that they render a maximum of 20 hours in a week.

This is still subject to specific employers, including work-study programs at higher education institutions.


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.


FAQs

Besides the details mentioned above, below are some FAQs regarding South Dakota Minimum Wage Laws.

What are the exemptions under South Dakota minimum wage laws?

As mentioned above, employees like babysitters and those employed in recreational wages are exempt from the minimum wage requirement. This also includes seasonal amusement workers and outside salespersons.

In addition, individuals given an opportunity wage, as aligned with the South Dakota Codified Law, are part of the exemptions.

Stated above, too, are other exemptions: Apprentices, Learners, and those with developmental disabilities if the Department of Labor and Regulation has a permit for their employment, which stipulates fixed compensation.

Who are covered by South Dakota minimum wage laws?

All employees, whether full-time, part-time, or temporary, are covered.

Do independent contractors have to abide by South Dakota’s minimum wage laws?

No. These laws do not apply to them.

What should be done in the case of employers not giving their employees their due?

Complaints must be filed through the state’s Department of Labor and Regulation, particularly under the Wage and Hour Division. Note that agreements to work under the minimum wage are prohibited and not made effective.

How can I check the historical rates of minimum wages in South Dakota?

This information, specifically a table of minimum wages implemented in the state as far as 1968, is readily available through the U.S. Department of Labor website.

Those are all the FAQs! For other questions about employers’ compliance regarding minimum wage, it is best to seek legal advice from any tax professional or tax attorney.


Other State’s Minimum Wage Information

AlabamaHawaiiMassachusettsNew MexicoSouth Dakota
AlaskaIdahoMichiganNew YorkTennessee
ArizonaIllinoisMinnesotaNorth CarolinaTexas
ArkansasIndianaMississippiNorth DakotaUtah
CaliforniaIowaMissouriOhioVermont
ColoradoKansasMontanaOklahomaVirginia
ConnecticutKentuckyNebraskaOregonWashington
DelawareLouisianaNevadaPennsylvaniaWest Virginia
District of ColumbiaMaineNew HampshireRhode IslandWisconsin
FloridaMarylandNew JerseySouth CarolinaWyoming
Georgia

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