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South Dakota increases minimum wage for 2021

11/05/20

Author: ADP Admin/Wednesday, November 4, 2020/Categories: Compliance Corner , State Compliance Update, South Dakota

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 60-11-360-11-3.1, 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.

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