South Dakota’s Annual Increase Of Minimum Wage Has Been Announced

South Dakota’s Annual Increase Of Minimum Wage Has Been Announced

Just announced: the new South Dakota Minimum Wage for 2021 is increasing by 15 cents per hour. The new rate of $9.45 per hour is up from $9.30 in 2020. The new rate becomes effective on January 1, 2021, and applies to non-tipped employees in South Dakota.

South Dakota’s non-tipped minimum wage is adjusted on an annual basis, increasing at the same rate as the cost of living as measured in the Consumer Price Index published by the U.S. Department of Labor. The amount of the increase will be rounded up to the nearest five cents. The South Dakota state minimum wage cannot decrease.

The hourly minimum wage for tipped employees will be no less than $4.725 per hour, beginning on January 1, 2021. Employers must ensure that it keeps and maintains records of all tips received by employees.

Employers must be sure that hourly employees receive no less than the current minimum wage and that it maintains proper records of time worked and wages paid for hourly employees.

There are also certain exemptions from the minimum wage that apply to:

  • seasonal amusement or recreations establishments, babysitters, or outside salespersons;
  • training wages;
  • apprentices and individuals with developmental disabilities.

There is no South Dakota state statute that requires a poster to be displayed regarding minimum wage. However, South Dakota’s State Department of Labor and Regulation provides one as a courtesy to employers, and many employers do post this in their workplace at a location where employees can see it or where other postings are typically made (e.g., breakroom, bulletin board, company intranet, etc.).

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