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:
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.
Exemptions:
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).
Compliance Recommendations:
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.