South Dakota minimum wage 2026
The minimum wage in South Dakota is $11.85 an hour in 2026, rising to $12.30 on January 1, 2027. South Dakota indexes its minimum wage to inflation every January 1 under SDCL 60-11-3.2, rounding each increase up to the nearest five cents. The Department of Labor and Regulation posts the next rate by October 15, and the tipped cash wage is always half the full rate.
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At a glance
| Minimum wage now | $11.85 an hour, since January 1, 202614 |
|---|---|
| Next change | $12.30 on January 1, 2027 (announced)18 |
| Tipped employees | $5.925 cash wage, tip credit up to $5.925125 |
| Overtime | 1.5 times the regular rate after 40 hours a week (federal law only)49 · details |
| Full-time pay | $474 a week, $24,648 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | South Dakota Department of Labor and Regulation, 605-773-3101 |
What to know about the South Dakota minimum wage
South Dakota's minimum wage moves every January 1 by a formula in SDCL 60-11-3.2. The Department of Labor and Regulation measures the change in the Consumer Price Index for All Urban Consumers from August to August, rounds the increase up to the nearest five cents, and never lets the rate fall.3 Under that formula the rate went from $9.95 on January 1, 2022 to $10.80, $11.20, $11.50 and then $11.85 on January 1, 2026.61 The department must post the next year's rate on its website no later than October 15.1
Tipped workers are tied to the same index. An employer may pay half the minimum in cash, $5.925 an hour in 2026, to an employee who customarily receives more than $35 a month in tips, and must keep a record of all tips received.12 Because the cash wage is a percentage rather than a fixed figure, it rises automatically each January along with the full rate.
The law leaves out seasonal amusement or recreation businesses, babysitters and outside salespeople, and it permits lower pay for apprentices, people with a developmental disability, and workers under 20 earning the federal opportunity wage.3 The department offers a state minimum wage poster in English and Spanish, though no statute requires employers to post it, and takes claims for unpaid wages.1 South Dakota law does not expressly address local minimum wages, and no city or county has adopted one.
All 2026 rates
| Rate | Applies to | Per hour |
|---|---|---|
| State minimum wage | Most employers in South Dakota$12.30 from January 1, 202718 | $11.8514 |
| Opportunity wage (under 20) | Workers under 20 may be paid the federal opportunity wage, defined in the federal Fair Labor Standards Amendments of 1996, during their first 90 days (SDCL 60-11-4.1). | See rule3 |
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $5.925 an hour125 |
| Maximum tip credit | $5.925 an hour |
Employees who customarily receive more than $35 a month in tips may be paid a cash wage of half the minimum, $5.925 in 2026, if tips bring their pay to the full minimum wage ($11.85 in 2026); the employer must keep records of tips.
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
Overtime and salaried staff
| Weekly overtime | No state rule; employers covered by federal law pay 1.5 times the regular rate after 40 hours a week49 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
South Dakota has no general state overtime law. Employers covered by the federal Fair Labor Standards Act must pay time and a half after 40 hours in a workweek.
Overtime at the minimum wage of $11.85 is $17.775 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
Each January 1 the rate rises by the August-to-August change in the Consumer Price Index for All Urban Consumers, rounded up to the nearest five cents, and it never decreases (SDCL 60-11-3.2). The Department of Labor and Regulation posts the new rate by October 15.
Indexed to inflation: yes. Adjusted each January 1 by the August-to-August change in CPI-U, rounded up to the nearest 5 cents; never decreases.34
Rate history
Who is covered
Most employers must pay the state rate. Seasonal amusement or recreation establishments, babysitters and outside salespeople are exempt, and lower pay is allowed for apprentices, persons with a developmental disability and workers under 20 earning the federal opportunity wage.
- The tipped cash wage is set at 50% of the minimum, so it rises each January with the full rate.
- The Department of Labor and Regulation provides a minimum wage poster in English and Spanish as a courtesy; no state statute requires posting it.
- Workers under 20 may be paid the federal opportunity wage for their first 90 days under SDCL 60-11-4.1.
Cities and counties
South Dakota law does not expressly address local minimum wages, and no city or county in South Dakota has adopted one.
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| Nebraska | $15.00 |
| Minnesota | $11.41 |
| Montana | $10.85 |
| Iowa | $7.25 |
| North Dakota | $7.25 |
| Wyoming | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | South Dakota Department of Labor and Regulation |
|---|---|
| Phone | 605-773-3101 |
| The law | SDCL chapter 60-11 (60-11-3, 60-11-3.1, 60-11-3.2, 60-11-4.1, 60-11-5) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
- 1 South Dakota Department of Labor and Regulation, Minimum Wage Checked Oct 9, 2026 · Back to text ↑
- 2 South Dakota Legislature, SDCL 60-11-3.1 Checked Oct 9, 2026 · Back to text ↑
- 3 South Dakota Legislature, SDCL chapter 60-11 Checked Oct 9, 2026 · Back to text ↑
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- 8 South Dakota Department of Labor and Regulation, Minimum wage poster, 2027 Checked Oct 28, 2026 · Back to text ↑
- 9 U.S. Department of Labor, Wage and Hour Division, Overtime Pay Checked Oct 28, 2026 · Back to text ↑
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