South Dakota minimum wage update

  • Effective January 1, 2021, the state minimum wage is $9.45 per hour. The minimum base wage for tipped employees is $4.725 per hour.
  • For tipped employees (those who engage in an occupation in which the employee customarily receives more than thirty-five $35.00 dollars a month in tips or other considerations), employers must ensure that employees receive no less than the state minimum wage when the minimum base wage and tips actually received by an employee are combined. Employers must keep a record of all tips received by the employees.
  • Employees exempted from the state’s minimum wage requirements include those employed at seasonal amusement or recreation establishments, babysitters or outside salespersons.
  • Employers may pay newly hired employees under the age of twenty (20) an opportunity or training wage of $4.25 per hour during the employee’s first ninety (90) days of employment.
  • For more information, please visit the South Dakota Department of Labor and Regulation website.

By Megan Butz
General Counsel, HR Compliance, Checkwriters
Megan joined Checkwriters in 2020 and is responsible for reviewing, revising, and implementing internal policies of the company, advising on human resource, employment, and labor matters, and monitoring and publishing state and federal legal updates to the Checkwriters News and Compliance Center for distribution to thousands of clients around the country. Before joining Checkwriters, Megan served as a judicial law clerk for the justices of the Massachusetts Probate and Family Court performing legal research and writing, followed by private practice in Cape Cod.

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