South Dakota’s minimum wage will increase from $9.95/hour to $10.80/hour, effective Jan. 1, 2023.
The hourly minimum wage for tipped employees will be $5.40/hour, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.
The minimum wage increases apply to all South Dakota employers, with some limited exceptions.
South Dakota implements this annual increase as established by (SDCL 60-11-3.2) a law passed by the state Legislature that took effect Jan. 1, 2016. The law requires that on January 1 of each year, the state’s minimum wage be adjusted by any increase in the cost of living, as measured in the Consumer Price Index published by the US Department of Labor.
The Secretary of the South Dakota Department of Labor and Regulation or its designee shall publish the adjusted minimum wage rate for the forthcoming year on its internet home page by October 15 of each year, and it shall become effective on January 1 of the forthcoming year. For more information, visit dlr.sd.gov/employment_laws/minimum_wage.aspx.
The increase in the cost of living shall be measured by the percentage increase as of August of the immediately preceding year over the level as measured as of August of the previous year of the Consumer Price Index (all urban consumers, U.S. city average for all items) or its successor index as published by the US Department of Labor or its successor agency, with the amount of the minimum wage increase, if any, rounded up to the nearest five cents. In no case shall the minimum wage be decreased.
Comments