South Dakota Governor Dennis Daugaard signed into law on March
20 legislation establishing a youth minimum wage of $7.50 per hour.
Senate Bill 177 allows employers to pay employees under the
age of 18 a reduced minimum wage of $7.50 per hour and provides that
this rate is not subject to the annual minimum wage adjustment under
statute Section 60-11-3.2.
The new law, which takes effect on July 1, also prohibits employers
from displacing any employee, including a partial displacement through
a reduction of hours, wages or employment benefits, in order to hire
an employee at the reduced youth rate.
Section 60-11-3.2, which was put into place by voters through
Initiated Measure 18 in the November 4, 2014, General Election, requires
the state minimum wage rate to be adjusted annually, starting in 2016,
by the increase, if any, in the cost of living, rounded to the nearest
five cents. The voter initiative also set the state minimum wage rate
at $8.50 per hour for 2015. (S.B. 177, L. 2015,
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