Effective January 1, 2025, South Dakota’s minimum wage for non-tipped employees will
increase by 30 cents per hour, rising from $11.20 in 2024 to $11.50 per hour. The state
minimum wage is increased annually, based on adjustments tied to the cost of living as
measured by the U.S. Department of Labor’s Consumer Price Index. The increase is
rounded up to the nearest five cents, and the state’s minimum wage cannot decrease.
Additionally, the minimum wage for tipped employees will be set at $5.75 per hour
starting January 1, 2025. Employers are required to maintain records of all tips received
by their employees, ensuring compliance with the wage standards.
Key Details:
- Effective Date: January 1, 2025
- New Non-Tipped Minimum Wage: $11.50 per hour (up from $11.20)
- Applies to: All non-tipped employees (independent contractors are exempt)
- New Tipped Minimum Wage: $5.75 per hour
- Exemptions: Apply to seasonal amusement or recreation establishments,
babysitters, outside salespersons, training wages, apprentices, and individuals
with developmental disabilities. - Recordkeeping: Employers must track time worked and wages paid, as well as
tips received by tipped employees.
Though South Dakota law does not mandate the posting of a minimum wage notice, the SD Department of Labor and Regulation provides one as a courtesy, and many employers choose to display it in visible areas (e.g., breakrooms or bulletin boards) or on the company’s intranet.
See the links below:
https://dlr.sd.gov/employment_laws/publications/min_wage_poster_2025_english.pdf
https://dlr.sd.gov/employment_laws/publications/min_wage_poster_2025_spanish.pdf
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