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South Dakota Statewide Rule

South Dakota Minimum Wage Statewide Standard

Some RestrictionsApplies statewide across South Dakota (2026)

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
Last verified: September 5, 2026Source: South Dakota Legislature

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.

Source: South Dakota LegislatureView official code

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?
Not under current law. Cities lack express statutory authority and would face Dillon's Rule challenges under SDCL 9-29 if they tried.
Does South Dakota's minimum wage rise automatically?
Yes. SDCL 60-11-3 indexes the wage to the Consumer Price Index, with adjustments published each year by the Department of Labor.

Sources

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