What You Need to Know About South Dakota’s Minimum Wage

What You Need to Know About South Dakota’s Minimum Wage
Everything you need to know about South Dakota's minimum wage.
by Mary Hohn Nov 20, 2023 — 2 min read
What You Need to Know About South Dakota’s Minimum Wage

Nothing in this article constitutes legal advice. Please consult a tax attorney or tax professional if you have questions about minimum wage compliance.

At the beginning of 2024, a minimum wage increase will go into effect for South Dakota. As a small business owner, it’s essential that you stay up to date on the South Dakota minimum wage requirements to make sure you’re compliant.

To help you stay on top of the latest, here’s a guide to minimum wage requirements in the Mount Rushmore State.

What is the minimum wage in South Dakota?

The minimum wage in South Dakota increases to $11.20 per hour on January 1, 2024, up from $10.80 per hour the previous year. This is $3.95 more than the federal minimum wage. The minimum wage applies to most South Dakota employees, but there are some exemptions, including:

Keep in mind that some counties, cities, and towns may have their own minimum wage laws. Be sure to check what local wage laws may apply to you.

Minimum wage in South Dakota

Date Minimum wage
January 1, 2021 $9.45
January 1, 2022 $9.95
January 1, 2023 $10.80
January 1, 2024 $11.20

Are there plans to change the minimum wage beyond 2024?

As part of the South Dakota minimum wage increase, the rate is adjusted by any increase in the cost of living, as measured by the Consumer Price Index.

As an employer, you should expect that the minimum wage will increase beyond 2024. While a lot of states have set forth a plan to reach a $15 minimum wage within the decade, South Dakota has not yet passed a bill proposed to reach this same goal. Even so, the state of South Dakota continues to gradually increase in line with inflation and the cost of living.

How should small business owners prepare for changes to the minimum wage?

Knowing that the South Dakota minimum wage may continue to increase, now’s the time to take stock of your business’ financial health. By doing that, you can determine if you need to make budget adjustments. Not only that, but you can take other steps to ensure your business is prepared for minimum wage changes, including the following:

 

While these are helpful guidelines to follow, to make sure your business is prepared and stays in compliance, you should discuss South Dakota’s minimum wage laws with your accountant and lawyer.

Mary Hohn
Mary Hohn writes for Square, where she covers topics that affect business owners — from starting a business to growing a business — and the tools and technology that help them succeed.

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