Minimum wage in South Dakota will increase to $11.50

The minimum wage for non-tipped employees in South Dakota will increase from $11.20 per hour to $11.50 per hour on Jan. 1, according to the state Department of Labor and Regulation.

The minimum wage in the state is adjusted annually based on increases in the cost of living, as measured by the consumer price index published by the U.S. Department of Labor. South Dakota implements this annual increase due to a citizen-initiated ballot measure passed by voters in 2014.

The minimum wage for tipped employees will be $5.75 per hour effective Jan. 1, which is half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.  

These increases will apply to all South Dakota employers, with some limited exceptions. For more information, visit dlr.sd.gov/employment_laws/minimum_wage.aspx. 

South Dakota is one of 30 states, plus the District of Columbia, that has adopted a minimum wage higher than the federal minimum wage of $7.25 per hour, according to The Economic Policy Institute. South Dakota’s minimum wage is currently the 25th highest in that group.