PIERRE — The state minimum wage will increase from $9.10 per hour to $9.30 per hour, effective Jan. 1, 2020, the South Dakota Department of Labor said Thursday.
The minimum wage is annually adjusted by any increase in the cost of living, as measured in the Consumer Price Index published by the U.S. Department of Labor. This year’s increase was 1.7 percent and is rounded up to the nearest 5 cents. The minimum wage cannot decrease in South Dakota, and the adjusted rate must be announced by Oct. 15 prior to the next year.
The hourly minimum wage for tipped employees will be $4.65 per hour effective Jan. 1, 2020, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage.
These increases will apply to all South Dakota employers, with some limited exceptions.
The minimum wage went up 25 cents prior to 2019, up to $9.10 per hour from $8.85. South Dakota was one of 29 states in the country where the state minimum wage was greater than the federal rate of $7.25 per hour.
