South Dakota minimum wage rising to $9.45

Beginning January 1, 2021, South Dakota’s minimum wage for hourly employees will increase to $9.45 per hour from the previous rate of $9.30 per hour.

South Dakota adjusts its minimum wage as needed every year to stay in line with the consumer price index as reported and published through the U.S. Department of Labor (DOL). The new increase was 1.3 percent, and the rate was then rounded up to the nearest $.05. The rate cannot go down.

Tipped employees also will see an increase in their minimum wage to $4.725 (or half the rate for nontipped employees). Employers must ensure tipped employees receive no less than the current minimum wage and keep a record of all tips they receive. Their increase also takes effect on January 1.

To obtain 2021 minimum wage posting signs in English and Spanish, visit the South Dakota DOL’s minimum wage website. Compliance with both the minimum wage standards and federal posting requirements is mandatory.

Beth A. Roesler is the managing partner of the Goosmann Law Firm office in Sioux Falls, South Dakota. You can reach her at RoeslerB@goosmannlaw.com.