South Dakota's minimum wage will increase to $9.45 per hour on January 1, 2021. The increase is a result of an annual adjustment for inflation.
Tipped employees must receive $4.725 per hour beginning January 1, 2021. If an employee's direct cash wages and tips fail to equal or exceed the minimum wage, employers must make up the difference.
There are exemptions from the minimum wage for certain seasonal, amusement and recreational establishments, babysitters, outside salespeople, and employees paid an opportunity or training wage (see SDCL 60-11-3, 60-11-3.1, and 60-11-4.1). There are also exemptions for certain apprentices or individuals with developmental disabilities (see SDCL 60-11-5).
Beginning January 1, 2021, South Dakota employers must pay all non-exempt employees at least $9.45 per hour. Although posting a minimum wage notice is not required, it's a best practice for covered employers to post an updated notice by January 1, 2021. Please contact your dedicated service professional with any questions.