S.D.: State Votes to Raise Minimum Wage

By SHRM Online Staff Nov 21, 2014

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.

These increases apply to all South Dakota employers, but there are some limited exceptions. For example, employers may continue to pay $4.25 per hour for employees under the age of 20 for the first 90 calendar days of employment. Also, the minimum wage requirements do not apply apprentices or persons with developmental disabilities, if the state issues a permit for their employment fixing their wage or compensation. Finally, the requirements do not apply to seasonal amusement or recreation establishments, babysitters or outside salespersons.

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