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Minimum Wage in South Dakota in 2023

Last Updated on:

25 January 2023
Minimum Wage in South Dakota

The minimum wage is the lowest wage an employer is legally permitted to pay an employee. On top of the federal minimum wage, most states in the United States have state-wide minimum wage laws. 

So, the minimum wage can vary between states, often quite divergently. 

Over the last ten years, the minimum wage in South Dakota - the Mount Rushmore state - has seen an upward trend, which is much needed as the prices of consumer goods, housing prices, rent, utility, and other necessities have also increased.

Large states like California, which are large both in terms of size and population, can have complex minimum wage laws.

But South Dakota has a much smaller population, and their state labor laws regarding minimum wage are quite straightforward.

Let’s find out the current minimum wage in South Dakota and how it will change in the coming years. 

What is the Minimum Wage in South Dakota?

There are two types of minimum wage for employees in South Dakota. One is for the non-tipped employees, and the other is for the tipped employees of the state. 

While it might appear that tipped employees get paid less, that’s actually not true. Tipped employees make the minimum wage too but in a different way. 

According to labor laws prevalent in many states, an employer can take advantage of tip credit, which allows them to pay a lesser wage to tipped employees. Not all states allow tip credit, but South Dakota is one of the states that do.

However, the tips earned by employees must make up the difference between the cash wage and the minimum wage.

If it doesn't, the employer will have to make up the difference so that the amount employees receive reaches the minimum wage level.

Minimum Wage in South Dakota in 2023

The minimum wage for untipped employees in South Dakota is $10.80/hour. On the other hand, the minimum wage for tipped employees in South Dakota is $5.40 per hour.

However, the minimum wage is already set to change due to the rising cost of living, which is borne out by the Consumer Price Index (CPI) date. 

The annual increase in minimum wage resonates with the rate of increase in the cost of living measured in the CPI published by the government. The adjusted rate is generally announced on the South Dakota Department of Labor & Regulation website by 15th October of every year.

South Dakota Weekly Minimum Wage

Weekly or monthly minimum wage will vary based on the number of hours an employee works. 

In 2023, an untipped employee who works eight hours per day, five days a week, will earn $432, which is $34 more than what they would have earned in 2022. 

South Dakota Overtime Minimum Wage

In South Dakota, you won't find any state-specific overtime laws. This is because the state follows overtime rules and regulations laid down by the Federal Fair Labor Standards Act.

Most employees in South Dakota are entitled to the Federal overtime pay rate, which applies to employees who work more than 40 hours in any given week.

So, an employee cannot get overtime if no track is kept of the hours worked. South Dakota also doesn't have a specific overtime limit per day, unlike some states who have set a daily overtime limit.

Overtime minimum wage is often called the "time and a half pay" as the Federal labor law states that overtime pay would be one and a half times more than their normal hourly wage. This means that a South Dakota minimum wage employee will get a minimum of $16.20/hour for their overtime hours.

How is South Dakota Minimum Wage Different from the Federal Minimum Wage?

According to Federal Labor laws, the federal minimum wage for employees has been set at $7.25 per hour since 2009.

Since most states have their own minimum wage laws, employees are legally entitled to whichever is the higher between the state and federal minimum wage. 

Therefore, most South Dakota employees will receive at least the state minimum wage of $10.80/hour in 2023. 

The employees in South Dakota will receive $3.55 more than what they would get under the Federal minimum wage in 2023. The higher state minimum wage allows employees in South Dakota to enjoy a decent standard of living. 

Who Qualifies for Minimum Wage?

Most employees in South Dakota qualify for minimum wage, save for some notable exceptions. One is the tipped employees, who can be paid according to the minimum wage regulations set down for tipped employees. 

Other exempted employees include some student workers, people under the age of 20, and a few other categories of workers. 

The youth minimum wage (for those below the age of 20) is $4.25 per hour, but this only applies to the first 90 days of their employment, provided they are undergoing training for the role. 

Historical Change of Minimum Wage in South Dakota

The minimum wage in the state of South Dakota is subject to change according to the rate of increase in inflation, which is calculated through the CPI. 

The table below shows how the minimum wage in South Dakota has changed over the last ten years.

Effective Date

Minimum Wage Per Year

January 1st, 2023

$10.80

January 1st, 2022

$9.95

January 1st, 2021

$9.45

January 1st, 2020

$9.30

January 1st, 2019

$9.10

January 1st, 2018

$8.85

January 1st, 2017

$8.65

January 1st, 2016

$8.55

January 1st, 2015 

$8.50

January 1st, 2014

$7.25

January 1st, 2013 

$7.25

January 1st, 2012 

$7.25

Conclusion

In the state of South Dakota, currently in 2023, the minimum wage is $10.85. This will help the employees earn an extra $34 per week than they were earning last year.

Furthermore, those who employ tipped workers can enjoy the Tip Credit, which has allowed the minimum wage for tipped employees to be $5.40 in 2023.

FAQ

1. How Much Can You Expect to Earn on Minimum Wage in South Dakota Yearly?

In 2023, 52 weeks of work will earn someone working minimum wage around $22,464.00 if they don’t work overtime.

2. What Is the Minimum Wage in South Dakota for 14-Year-Olds?

Any employee under the age of sixteen can work up to 4 hours per day or 20 hours per week when school is in session. For weeks when they don't have school, they can work 8 hours per day and 40 hours per week, just like any other employee.  All of this is in accordance with South Dakota state law, which is less strict about minors working than Federal law.  The minimum wage for any first-time employee below the age of 20 is the training wage of $4.25 for the first 90 days of employment. After the training period, they are either paid based on untipped minimum wage or tipped minimum age, depending on which type of work they do.

3. What Is a Livable Salary in South Dakota?

While there are many benefits of living in South Dakota, such as low cost of living and housing prices, it is still quite difficult to live on minimum wage. Even a single person needs to earn at least $14.85 per hour to live moderately well in South Dakota. If you have a child, you need to earn at least $29.44 per hour to support them; this figure can rise significantly higher if you have multiple kids.


Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.


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