labor lawAdivision of labor law center

The minimum wage in South Dakota is now $6.55 per hour. On July 24, 2008 when the federal minimum wage increased from $5.85 per hour. Under state law, the South Dakota minimum wage also increases to reflect the change in the federal minimum wage.

 

The Fair Minimum Wage Act of 2007increased the federal minimum wage from $5.15 per hour to $7.25 per hour. However, the increase didn’t go into effect all at once. Under the federal law, the minimum wage increases in three 70 cent steps. The first step went into effect 60 days after the President signed the bill into law, on July 24, 2007. The other two increases occur on the same dates in 2008 and 2009.

 

The next scheduled increase in the South Dakota minimum wage is on July 24, 2009, when the state and federal minimum wage will increase by 70 cents to $7.25. This is the final increase under the current federal minimum wage law.

 

Prior to the increase on July 24, 2007, the minimum wage had been $5.15 per hour for almost a decade, since September 1, 1997.

 

Under South Dakota law, the minimum cash wage for servers is $2.13 per hour. Employers are permitted to take up to $4.42 per hour as a tip credit – assuming that servers average at least that amount in tips, over the pay period. If the server does not average $4.42 per hour in tips, the employer must pay the difference in wages. Employers must keep records of all tips received, and employees must pay taxes on them.

 

The South Dakota Department of Labor refers employers to federal law in many cases. Compared to many states, South Dakota has few laws regarding overtime, wages or compensation. There are no state overtime laws. There is no South Dakota law prohibiting comp time in lieu of overtime, although this is prohibited by federal law in most cases.

 

South Dakota has no law requiring employers to give meal or rest breaks to workers.

 

Workers are entitled to overtime after 40 hours by federal, not state, law. In most cases, employees must receive 1.5 times their usual hourly rate when working more than 40 hours in the payroll week. Some salaried workers are exempt from overtime, but not all are.

 

When a South Dakota worker is fired or quits, his or her final paycheck is due on the next scheduled payday. South Dakota law does permit employers to hold a worker’s check until any company property is returned – unlike most states.

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