The federal minimum wage of $7.25 an hour has been the same since 2009. Since then, 29 states—including South Dakota– and the District of Columbia have set minimum wages above the federal level.
The state minimum wage in South Dakota will increase from $8.85/hour to $9.10/hour effective tomorrow (Jan. 1, 2019).
The hourly minimum wage for tipped employees will be $4.55/hour effective Jan. 1, 2019, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.
South Dakota’s $9.10/hour is below Minnesota’s new minimum wage which will be $9.86/hour, but above Montana’s new wage of $8.50/hour and Nebraska’s current $9.
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. This year’s increase was 2.7 percent and is rounded up to the nearest five cents.
These increases will apply to all South Dakota employers, with some limited exceptions. For more information, visit http://dlr.sd.gov/employment_laws/minimum_wage.aspx.
