South Dakota’s minimum wage will increase to $8.85 per hour in 2018

The minimum wage in South Dakota will increase from $8.65 per hour to $8.85 per hour on January 1, 2018, according to the South Dakota Department of Labor and Regulation.
The minimum wage is adjusted annually by any increase in the cost of living, as measured by the Consumer Price Index published by the United States Department of Labor. This year’s increase was 1.9% and is rounded up to the nearest five cents.
The minimum wage for tipped employees will also increase, from $4.325 to $4.425 per hour, effective January 1, 2018, half the minimum wage rate for non-tipped employees. Wages plus tips combined must equal at least the state minimum hourly wage.
The increases apply to all South Dakota employers, with some limited exceptions.
South Dakota’s minimum wage provisions do not apply to certain employees being paid an opportunity wage, babysitters, or outside salesmen, or to certain seasonal workers, namely those employed by an amusement or recreational establishment, an organized camp, or a religious or nonprofit educational conference center if (1) the establishment, camp, or center does not operate for more than 7 months in any calendar year; or (2) during the preceding calendar year, the average receipts of the establishment, camp, or center for any 6 months of the calendar year were not more than 33 1/3 percent of its average receipts for the other 6 months of the year.
These provisions also do not apply to apprentices, to persons learning the business or work in which employed, or to any person with a developmental disability, if the Department of Labor has issued a permit for the person’s employment fixing the wage or compensation of such person. (South Dakota Department of Labor and Regulation, News Release, September 21, 2017.)

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