South Dakota Minimum Wage 2026 — $11.85/hr calculator

Frequently Asked Questions

• What is South Dakota's minimum wage in 2026?

  South Dakota's minimum wage is $11.85 per hour, effective January 1, 2026. This rate was announced by the South Dakota Department of Labor and Regulation on October 23, 2025, and reflects an annual adjustment for inflation based on the Consumer Price Index (CPI).

• How does South Dakota's 2026 minimum wage compare to the federal minimum wage?

  South Dakota's 2026 rate of $11.85/hr is $4.60 above the federal FLSA minimum wage of $7.25/hr. The federal rate has not changed since 2009. South Dakota employers must pay the higher state rate — the federal floor is irrelevant in South Dakota for most workers.

• What is the minimum wage for tipped employees in South Dakota in 2026?

  Tipped employees in South Dakota must receive a minimum cash wage of $5.925 per hour from their employer as of January 1, 2026 — exactly 50% of the state minimum wage. However, cash wages plus tips combined must equal at least $11.85 per hour. If they do not, the employer is legally required to pay the difference.

• What is a 'tipped employee' under South Dakota law?

  South Dakota follows the federal FLSA definition: a tipped employee is one who customarily and regularly receives more than $30 per month in tips. If an employee's tips fall below this threshold, they must be paid the full $11.85/hr minimum wage in direct cash wages, not the reduced tipped rate.

• Can South Dakota employers pay workers under 18 a lower minimum wage?

  South Dakota allows employers to pay employees under age 20 the federal opportunity (youth) wage of $4.25 per hour during the first 90 consecutive calendar days of employment. The employee's age — not grade in school — is the determining factor. After 90 days or upon turning 20, the full $11.85/hr state minimum wage applies immediately.

• How often does South Dakota's minimum wage increase?

  South Dakota's minimum wage increases automatically every January 1 based on the previous year's CPI (Consumer Price Index for Urban Wage Earners and Clerical Workers). The rate can only go up — South Dakota law prohibits a decrease even if the CPI declines. New rates are announced by October 15 of the preceding year.

• Who is exempt from South Dakota's minimum wage law?

  Several categories of workers are exempt from South Dakota's minimum wage: seasonal amusement or recreational establishment employees; babysitters; outside salespersons; apprentices or those learning a trade; individuals with developmental disabilities (with a permit from the SD DLR); and independent contractors (who are not employees under the law).

• Does South Dakota allow a training wage below minimum wage?

  The only below-minimum-wage rate permitted in South Dakota for private employers is the federal youth opportunity wage ($4.25/hr) for employees under age 20 during their first 90 days. There is no general 'training wage' for other workers. Once 90 days pass or the employee turns 20, the full $11.85/hr rate applies.

• Are there any local minimum wages higher than South Dakota's state rate?

  No. As of 2026, South Dakota has no city or county minimum wages that exceed the state rate of $11.85/hr. The state rate applies uniformly across all of South Dakota, including cities like Sioux Falls, Rapid City, and Aberdeen.

• What happens if a South Dakota employer pays less than minimum wage?

  Employees paid below South Dakota's minimum wage can file a wage claim with the South Dakota Department of Labor and Regulation (DLR) at dlr.sd.gov or by calling 605-773-3101. The DLR can investigate and order the employer to pay the difference between what was paid and what was owed. Employers who repeatedly violate minimum wage law may face additional penalties.