The South Dakota Department of Labor and Regulation announced Wednesday that the state minimum wage will increase from $9.95/hour to $10.80/hour effective Jan. 1.
The minimum wage is annually adjusted by any increase in the cost of living, as measured in the Consumer Price Index published by the U.S. Department of Labor. South Dakota implements this annual increase as established by a Jan. 1, 2016 law passed by the South Dakota Legislature.
The Department of Labor and Regulation said the hourly minimum wage for tipped employees will be $5.40/hour effective Jan. 1, which is half the minimum wage for non-tipped employees. State law mandates that wages and tips combined must equal at least the minimum wage.
These increases apply to all South Dakota employers, with some limited exceptions. Those exceptions include employers who hire seasonal amusement or recreation establishments, independent contractors, babysitters and outside salespersons. Additionally, training wages, apprenticeships and employers who hire those with developmental disabilities are exempt with a permit from the Department of Labor and Regulation.
The increase will be the largest since 2015 in South Dakota.