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Since January 2025, the minimum wage rate in South Dakota has been $11.50 per hour. It is enforced by the South Dakota Department of Labor and Regulation and undergoes changes annually according to the Consumer Price Index.
The tipped minimum wage rates are $5.75 per hour. All employers must ensure that tipped employees’ earnings, including tips, reach at least the standard minimum wage.
Effective Jan. 1, 2026, the tipped minimum wage rates are rise up to $11.75 per hour and for non-tipped minimum wages to $5.75 per hour.
Minimum Wages in South Dakota Cities
A table with the classification of minimum wage rates for non-tipped and tipped employees in various cities in South Dakota:
| City | Non-Tipped Employees | Tipped Employees |
|---|---|---|
| Sioux Falls | $11.50 | $5.75 |
| Rapid City | $11.50 | $5.75 |
| Aberdeen | $11.50 | $5.75 |
| Brookings | $11.50 | $5.75 |
| Mitchell | $11.50 | $5.75 |
| Pierre | $11.50 | $5.75 |
| Huron | $11.50 | $5.75 |
| Yankton | $11.50 | $5.75 |
| Watertown | $11.50 | $5.75 |
| Spearfish | $11.50 | $5.75 |
| Sturgis | $11.50 | $5.75 |
| Madison | $11.50 | $5.75 |
| Vermillion | $11.50 | $5.75 |
| Dell Rapids | $11.50 | $5.75 |
| Tea | $11.50 | $5.75 |
| Brandon | $11.50 | $5.75 |
| Custer | $11.50 | $5.75 |
| Lead | $11.50 | $5.75 |
| Hot Springs | $11.50 | $5.75 |
| Summerset | $11.50 | $5.75 |
| Box Elder | $11.50 | $5.75 |
| Lennox | $11.50 | $5.75 |
| Martin | $11.50 | $5.75 |
| Canton | $11.50 | $5.75 |
| Woonsocket | $11.50 | $5.75 |
| Elk Point | $11.50 | $5.75 |
| Sisseton | $11.50 | $5.75 |
| Gregory | $11.50 | $5.75 |
| Chamberlain | $11.50 | $5.75 |
Threshold For Employees Exempt
Your status as exempt or non-exempt affects not just your pay, but also how your wages change when minimum wage laws are updated. These classifications are governed by the Fair Labor Standards Act (FLSA).
The main distinction is in how they’re paid – non-exempt workers get hourly wages plus overtime, while exempt workers receive a set salary with no overtime, regardless of hours worked.
As of 2024, the rules for the standard exempt threshold for EAP (Executive, Administrative, Professional) employees:
- Minimum weekly salary: $844 per week
- Annual salary: $43,888 annually
Effective January 1, 2025, the threshold was scheduled to increase to $1,128 per week. However, a federal court ruling in late 2024, blocked this order, reverting the older threshold at $684 per week ($58,656 annually).
Thus, the salary threshold for 2025 are:
- For EAP employees: $684 per week ($58,656 annually)
- For HCE employees: $151,164 annually
Additionally, South Dakota employers can include non-discretionary bonuses, incentive payments, and commissions to satisfy the salary threshold, however, employees must receive them at least once annually.
Historical Data of South Dakota Minimum Wages
South Dakota’s minimum wage began at $1.00 per hour in 1971 and has been slowly increasing each year since then, especially from 2020 to 2024.
There was a $1.20 increase just last year as a direct result of a voter-approved measure and inflation adjustments. In January 2024, rates went from a record $9.45 to $10.8 to $11.20 per hour.
The U.S. Federal Reserve and other economic bodies regularly track these updates.
Here is a table;
| Time Period | Year | Minimum Wage |
|---|---|---|
| 1971-1974 | 1971 | $1.00 |
| 1975-1979 | 1975 | $1.60 |
| 1980-1984 | 1980 | $2.30 |
| 1985-1989 | 1985 | $3.35 |
| 1990-1994 | 1990 | $3.80 |
| 1995-1999 | 1995 | $4.25 |
| 2000-2004 | 2000 | $5.15 |
| 2005-2009 | 2005 | $5.15 |
| 2010-2014 | 2010 | $7.25 |
| 2015-2019 | 2015 | $8.50 |
| 2020-2023 | 2020 | $9.30 |
| 2024 | 2024 | $11.20 |
Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history
Exemptions in Minimum Wages of South Dakota
In South Dakota, like all other US states, certain employees are exempt from minimum wage requirements under specific conditions:
- Seasonal and recreational workers: Employees working for establishments open less than seven months annually, such as amusement parks or camps, are not subject to minimum wage laws.
- Babysitters and outside salespeople: Individuals employed as casual babysitters or outside salespersons are exempt from minimum wage coverage.
- Training wage: Employers can pay new hires under 20 years old a reduced rate of $4.25 per hour during their first 90 days of employment.
- Federal-based exemptions: South Dakota aligns closely with federal exemptions, including executive, administrative, and professional employees earning a minimum weekly salary of $684.
