Starting tomorrow (Jan. 1, 2026), the minimum wage for tipped and non-tipped employees in South Dakota goes up.
The state Department of Labor and Regulation says the hourly minimum wage for non-tipped employees increases from $11.50/hour to $11.85/hour, while the hourly minimum for tipped employees rises to $5.925/hour– or half the minimum wage for non-tipped employees. For tipped employees, wages and tips combined must equal at least the minimum wage.
These increases apply to all South Dakota employers, with some limited exceptions. South Dakota adjusts its minimum wage annually as established by a law enacted by the state legislature that’s been in effect since Jan. 1, 2016.
The minimum wage is adjusted each year based on increases in the cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor.
For more information, visit dlr.sd.gov/employment_laws/minimum_wage.aspx.
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