Minimum Wage Requirements in South Dakota 2024

Feb 14, 2024 | 4 min read

Overview of South Dakota's Minimum Wage Requirements

As of 2023, the minimum wage in South Dakota is $10.80 per hour, a figure that places the state 28th in the state minimum wage rankings. This is a significant improvement from its 42nd rank in 2015. The minimum wage in South Dakota has seen some fluctuations over the years, but the historical trend shows that it has been increasing over time. This is a positive trend for workers in the state, as it indicates a commitment to improving wages and, by extension, the standard of living.

It's important to note that South Dakota's minimum wage of $10.80 is above the federal floor of $7.25. This indicates that the state has made efforts to ensure that its workers earn more than the minimum wage set by the federal government. The state has shown a positive trend in increasing its minimum wage over the years, improving its rank from 42nd in 2015 to 28th in 2023.

Understanding Local Minimum Wage Variations

In South Dakota, the minimum wage varies by county. As of January 1, 2024, the minimum wage in Minnehaha County, Pennington County, Brown County, Brookings County, and Sioux Falls is $11.20 per hour for non-tipped employees and $5.60 per hour for tipped employees. Employers are obligated to ensure that their employees receive no less than the current minimum wage. They are also required to keep a record of all tips received by employees.

The minimum wage is adjusted annually based on the cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor. However, exemptions apply to certain categories of workers such as those in seasonal amusement or recreational establishments, babysitters, outside salespersons, those on training wage, apprentices, and persons with a developmental disability.

Minimum Wage Eligibility and Exemptions

In South Dakota, the minimum wage law applies to all employees, including part-time and temporary workers. However, there are certain exemptions under the South Dakota minimum wage law. These exemptions include seasonal amusement or recreational establishment employees, babysitters, and outside salespersons. The law also does not apply to anyone being paid an opportunity wage pursuant to South Dakota Codified Law (SDCL) 60-11-4.1, any apprentice, or anyone learning the business or work in which they are employed.

Persons with a developmental disability are also exempt if the Department of Labor and Regulation issues a permit for their employment that fixes wage or compensation for them. Furthermore, the minimum wage law does not apply to independent contractors. Additional exemptions apply to employees employed by an amusement or recreational establishment, an organized camp, or a religious or nonprofit educational conference center if either of the following conditions apply: (1) The establishment, camp, or center does not operate for more than seven months in any calendar year; or (2) During the preceding calendar year, the average receipts of the establishment, camp, or center for any six months of the calendar year were not more than thirty-three and one-third percent of its average receipts for the other six months of the year.

Minimum Wage Considerations and Compliance Tips

In South Dakota, food business employers must adhere to several key minimum wage laws and compliance considerations. Employers are required to ensure that employees receive no less than the current minimum wage and must keep a record of all tips received by employees. The minimum wage is adjusted annually based on the increase in the cost of living as measured by the Consumer Price Index published by the U.S. Department of Labor. The new adjusted rate is announced no later than October 15 of each year and becomes effective on January 1 of the forthcoming year.

It's crucial for food business employers to stay updated with the latest wage laws to ensure compliance and avoid potential legal issues. Any violation of the minimum wage law is considered a Class 2 misdemeanor.

FAQs

  • What is the current minimum wage in South Dakota? As of 2023, the minimum wage in South Dakota is $10.80 per hour.
  • Who is eligible for minimum wage in South Dakota? All employees, including part-time and temporary workers, are eligible for minimum wage in South Dakota.
  • Are there any exemptions to the minimum wage law in South Dakota? Yes, there are exemptions for certain types of employees, including seasonal amusement or recreational establishment employees, babysitters, and outside salespersons.

Information Source Links

Learn more about Local Food Delivery Trends and Insights

Feb 14, 2024 | 4 min read

About Otter

Otter helps your restaurant business grow. Here a few of our key results:
  • Increase revenue up to 10% with Marketing*
  • Reduce storefront downtime by up to 50% with Live Alerts*
  • Increase sales up to 50% with Digital Dine-In's QR code ordering*
  • Reduce missed orders to less than 1% with Order Manager's Auto-Accept feature*
  • Supercharge your food business with our all-in-one restaurant POS system*
* Results based on typical Otter customer performance

DISCLAIMER: This information is provided for general informational purposes only and the content does not constitute an endorsement. Otter does not warrant the accuracy or completeness of any information, text, images/graphics, links, or other content contained within the content. We recommend that you consult with financial, legal, and business professionals for advice specific to your situation.

Request a demo

Subscribe to the monthly newsletter →