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South Dakota voted to raise the state’s hourly minimum wage for non-tipped employees from $7.25 per hour to $8.50 per hour, effective Jan. 1, 2015. In a change from the state’s old law, the minimum wage will be annually adjusted by any increase in the cost of living as measured by the Consumer Price Index published by the U.S. Department of Labor. The minimum wage cannot be decreased in any case.
Tipped employees currently have a minimum cash wage of $2.13 per hour. However, effective Jan. 1, 2015, employers must pay a wage of no less than 50 percent of the prevailing state minimum wage. Employers must make sure the employees receive no less than the minimum wage and must keep a record of all tips received by employees.
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