South Dakota's Annual Minimum Wage Increase Has Been Announced

Minimum Wage Update – the new South Dakota Minimum Wage for 2024 is increasing by 40 cents per hour. The new rate of $11.20 per hour is up from $10.80 in 2023. The new rate became effective on January 1, 2024, and applies to all non-tipped employees in South Dakota. The minimum wage does not apply to independent contractors.

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 by 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 $5.60 per hour, beginning on January 1, 2024. 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 applicable current minimum wage. Employers must also maintain 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 recreation 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 for informational purposes in their workplace at a location where employees can see it or where other postings are typically made (e.g., breakroom, bulletin board, intranet, etc.). 

See the links below:

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