The South Dakota minimum wage will increase from $9.45 an hour to $9.95 an hour effective January 1st.
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 law. The law was passed by the South Dakota Legislature in 2015.
The hourly minimum wage for tipped employees will be $4.97 an hour effective January 1st, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.
These increases will apply to all South Dakota employers, with some very limited exceptions.