South Dakota’s minimum wage to increase January 1

The minimum wage in South Dakota will increase from $8.85 per hour to $9.10 per hour on January 1, 2019.

The state minimum wage is annually adjusted based on any increase in the cost of living, as measured by the Consumer Price Index published by the United States Department of Labor. The increase for 2019 is based on a 2.7% increase in the cost of living and is rounded to the nearest five cents.

The hourly minimum wage for tipped employees will be $4.55 per hour effective January 1, which is half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the state minimum wage.

The increases apply to all South Dakota employers, with some limited exceptions, such as work for those paid an opportunity wage, those employed by seasonal amusement or recreational establishments, babysitters or outside salespersons, apprentices, trainees learning the business or work in which employed, or those with a developmental disability if the Department of Labor and Regulation issues a permit for the person’s employment fixing the wage or compensation for such person. (South Dakota Department of Labor and Regulation, News Release, September 26, 2018.)

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