What Is the Minimum Wage in South Dakota?

Understanding South Dakota's Current Minimum Wage

Are you starting a new job in South Dakota or considering moving here for work opportunities? One key detail you need to know is the current minimum wage in South Dakota. Every worker and employer should stay informed about minimum wage laws and updates. Knowing your rights and requirements helps you make the most of your employment experience in the state.

The minimum wage is the lowest hourly rate employers can legally pay most workers. It is designed to protect employees from exploitation and help ensure fair compensation. South Dakota's minimum wage is influenced by the cost of living, local economic factors, and state legislation.

2024 Minimum Wage Rate in South Dakota

As of January 1, 2024, South Dakota’s minimum wage is $11.20 per hour for non-tipped employees. This rate reflects a recent annual cost-of-living adjustment mandated by state law. If you are a tipped employee, such as a waitress or bartender, the minimum wage is $5.60 per hour. Employers must make up the difference if tips plus wages do not equal the regular minimum wage.

• Standard minimum wage (non-tipped workers): $11.20/hour
• Tipped minimum wage: $5.60/hour
• Adjusts annually based on the Consumer Price Index (CPI)

South Dakota is one of several states that automatically adjusts its minimum wage rates each year based on the rise in the cost of living. This ensures that workers are not left behind as everyday expenses increase.

Who Qualifies for South Dakota Minimum Wage?

Most hourly workers in South Dakota are eligible for minimum wage protections. However, there are some exceptions and special rules:

• Full-time and part-time hourly employees must be paid at least the state minimum wage.
• Tipped employees are paid half the standard minimum, but their total earnings with tips must reach $11.20 per hour.
• Some agricultural workers, seasonal employees, and others may be subject to different wage rules.
• Workers under 20 years of age can be paid a training wage of $8.20 for the first 90 days of employment.

If you are unsure if you are covered by the minimum wage laws, ask your employer or consult the South Dakota Department of Labor and Regulation.

Comparing South Dakota’s Minimum Wage to National and Regional Rates

How does South Dakota stack up against other states and the federal minimum wage? The federal minimum wage has remained at $7.25 per hour since 2009. South Dakota’s rate is significantly higher, offering more earning power to employees.

• Federal minimum wage: $7.25/hour
• South Dakota minimum wage: $11.20/hour
• Neighboring states’ rates (2024):
  • North Dakota: $7.25/hour
  • Nebraska: $12.00/hour
  • Minnesota: $10.85/hour (for large employers)
  • Wyoming: $7.25/hour

This comparison shows that South Dakota offers a higher minimum wage than the federal rate and some of its neighbors, creating a more competitive wage environment.

Minimum Wage for Tipped Employees in South Dakota

If you work in a position that receives tips — such as waiter, bartender, or hotel staff — your minimum wage is $5.60 per hour. By law, your total earnings (wages plus tips) must add up to at least $11.20 per hour. If your tips fall short, your employer must make up the difference to reach the state minimum wage.

This policy helps ensure that tipped workers receive fair pay, even during slow business periods.

Living Wage vs. Minimum Wage in South Dakota

The minimum wage provides a legal baseline, but many people wonder if it’s enough to live on. The “living wage” is an estimate of what an individual or family needs to afford basic expenses in a specific area.

For South Dakota, MIT’s Living Wage Calculator estimates that a single adult needs about $17 per hour to meet basic needs without government assistance (as of 2024). This is higher than the current minimum wage, which can make it more challenging for minimum wage workers to afford rent, healthcare, and transportation without extra income or support.

• Minimum wage: $11.20/hour
• Estimated living wage (single adult): $17.00/hour
• Estimated living wage (family of four, two working adults): $24.13/hour per adult

Minimum Wage Laws and Compliance in South Dakota

Employers in South Dakota must display labor law posters, including information about the current minimum wage. Both new and existing employees should have easy access to this information at the workplace.

If you believe you are being paid below the legal minimum wage, you can file a wage complaint with the South Dakota Department of Labor and Regulation. Enforcement actions may include back pay, fines, or other remedies for affected employees.

Staying informed about wage laws helps protect your rights and promotes fair labor standards across the state.

Related Questions About Minimum Wage in South Dakota

Does South Dakota minimum wage apply to all employees?

Most employees who work in South Dakota are entitled to the state minimum wage, but there are exceptions for certain job types. This can include agricultural workers, babysitters, and employees in small family businesses. Always check with the Department of Labor for details if you are unsure.

How often does South Dakota update its minimum wage?

South Dakota updates its minimum wage every year. The rate changes on January 1, based on inflation as measured by the Consumer Price Index. This annual adjustment is intended to protect workers as living costs rise.

What is the penalty for not paying minimum wage in South Dakota?

Employers who pay less than the required minimum wage may face legal action, including back pay to employees and monetary penalties. Workers can file a complaint with the state’s Department of Labor if they believe their rights are violated.

Can cities in South Dakota set their own minimum wage?

No, South Dakota law prohibits local governments from setting their own higher minimum wage. The statewide minimum wage rate applies to all cities and towns.

Is overtime pay required in South Dakota?

Yes, federal law requires overtime pay for non-exempt employees at a rate of 1.5 times the regular pay for hours worked over 40 in a workweek. South Dakota follows federal overtime laws.

Why Staying Informed About Minimum Wage Matters

Whether you are a job seeker, an employer, or just curious about labor standards, understanding the current minimum wage in South Dakota can help you plan and protect your economic well-being. With annual rate adjustments, employees receive some cost-of-living protection, while businesses can prepare for payroll changes. Staying up to date is the best way to ensure you’re paid what you’re owed and contributing to a fairer workforce in South Dakota.