South Dakota Codified Law §60-11-3 prohibits Sioux Falls and any other municipality from setting a minimum wage above the state floor, which is CPI-indexed and currently near $11.50 per hour.
South Dakota voters approved Initiated Measure 18 in 2014 setting a state minimum wage indexed annually to CPI, codified at SDCL §60-11-3. The same statute (and SD Constitution Art. III provisions on local powers) preempts cities and counties from adopting higher minimums or industry-specific wage floors such as fast-food or hotel-worker wages. The state minimum currently sits near $11.50 per hour for non-tipped workers, with a separate lower tipped minimum. Federal FLSA still applies. Sioux Falls City Council has occasionally discussed advocacy for a higher state floor but cannot enact one locally.
Cities that pass a higher local minimum face state preemption challenges and unenforceability; employers paying below the CPI-indexed state floor face SD Department of Labor claims and federal FLSA actions.
Sioux Falls, SD
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Sioux Falls, SD
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See how Sioux Falls's minimum wage preemption rules stack up against other locations.
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