South Dakota Statewide Rule
South Dakota Minimum Wage Statewide Standard
Key Facts
- 2026 minimum wage
- $11.85 per hour
- Authority
- SDCL 60-11-3 sets state minimum wage
- Indexing
- Annual CPI adjustment, rounded up
- Tipped wage
- $5.925 (half of standard)
- Local wage authority
- None expressly delegated
- Enforcement
- Department of Labor and Regulation
Summary
South Dakota sets a uniform minimum wage under SDCL 60-11 indexed annually to inflation, and local governments cannot mandate higher wages within municipal limits.
60-11-3. Minimum wage-Misdemeanor-Certain employees excluded. Every employer shall pay to each employee wages at a rate of not less than eight dollars and fifty cents an hour. Violation of this section is a Class 2 misdemeanor. The provisions of this section do not apply to certain employees being paid an opportunity wage pursuant to § 60-11-4.1, babysitters, or outside salespersons. The provisions of this section also do not apply to employees employed by an amusement or recreational establishment, an organized camp, or a religious or nonprofit educational conference center if one of the following apply: (1) The establishment, camp, or center does not operate for more than seven months in any calendar year; or (2) During the preceding calendar year, the average receipts of the establishment, camp, or center for any six months of the calendar year were not more than thirty-three and one-third percent of its average receipts for the other six months of the year.
Full Breakdown
SDCL 60-11-3 sets the state minimum wage, which is $11.85 per hour effective January 1, 2026, with annual cost-of-living adjustments tied to the Consumer Price Index (rounded up to the nearest five cents; it may not decrease). Tipped employees must receive at least half the standard minimum, $5.925 in 2026, with employers covering any shortfall. Cities and counties lack express authority to set higher local minimum wages, and such an ordinance would face a Dillon's Rule challenge as beyond delegated municipal powers under SDCL 9-29.
Violations & Penalties
Wage violations expose employers to back-pay liability, liquidated damages, and Department of Labor enforcement under SDCL 60-11; willful violations may incur misdemeanor penalties.
Frequently Asked Questions
Can a South Dakota city set its own minimum wage?
Does South Dakota's minimum wage rise automatically?
Sources
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