Employers should adhere to their own policies regarding the payment of unused, earned vacation time when an employee’s employment ends.
South Dakota Labor Laws
South Dakota Minimum Wage
In 2021, the minimum wage rate in South Dakota is $9.45 per hour.
South Dakota Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of South Dakota Labor Laws
In 2014, both the state and federal minimum wage rates were $7.25 per hour. However, beginning in 2015, South Dakota’s rate increased to $8.50, surpassing the federal rate. The state minimum wage continued to rise annually as follows: $8.55, $8.65, $8.85, $9.10, $9.30, and currently stands at $9.45.
Municipality Minimum Wage Laws
South Dakota does not have a law that prevents local governments from setting their own minimum wage rates. However, no cities or other localities in the state have chosen to do so.
South Dakota Minimum Wage Exemptions
Not all employees in South Dakota are subject to the state’s minimum wage requirements. Exemptions include employees of seasonal amusement or recreational establishments, babysitters, outside salespersons, and certain other categories of workers.
Additionally, employers can pay an opportunity wage, also known as a training wage. This permits employers to pay newly hired employees under the age of 20 a rate of $4.25 per hour during their first 90 consecutive calendar days of employment.
South Dakota Posting Requirements
Required posters:
- Minimum Wage (Recommended - posting not required by state)
- Unemployment Insurance
- Safety in the Workplace
- Workers' Compensation (Must be obtained from insurance carrier)
Tipped Wage in South Dakota
As of January 1, 2021, the minimum wage for tipped employees in South Dakota is $4.725 per hour. If the combined amount of this wage and tips does not reach at least $9.45 per hour, the employer must make up the difference. In South Dakota, a tipped employee is defined as someone who customarily and regularly receives more than $35 per month in tips or other considerations.
Overtime Wage in South Dakota
When an employee works more than 40 hours in a workweek, they must be compensated at an overtime rate, which is time-and-a-half their regular pay rate, for the additional hours.
However, certain employees are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) and do not need to be paid overtime in South Carolina. These exempt workers include:
- Executive, administrative, and professional employees
- Outside sales employees and those in specific computer-related occupations
- Employees of certain seasonal amusement or recreational establishments
- Certain farm workers
- Casual babysitters and companions to the elderly or infirm
- Certain commissioned employees of retail establishments, auto and other sales workers, and certain parts clerks and mechanics
- Taxi drivers and some other transportation industry employees
- Announcers, news editors, and chief engineers of certain non-metropolitan broadcasting systems
- Domestic service workers living in the employer’s residence
- Employees of motion picture theaters
- Farm workers
Child Labor Laws in South Dakota
According to South Dakota state law, minors under the age of 16 are restricted from working:
- More than 4 hours on a school day or 20 hours in a school week
- More than 8 hours on a non-school day or 40 hours in a non-school week
- Later than 10 p.m. on a school night
Additionally, minors younger than 14 years old may not be employed during school hours or later than 7 p.m.
Please note that federal law is stricter than South Dakota law regarding many aspects of child labor, so federal regulations should be followed.
Employer Recordkeeping Requirements in South Dakota
Employers in South Dakota with at least 25 employees are required to make, keep, and maintain records of wages and wage rates, job classifications, and other terms and conditions of employment. These records should be preserved for a “reasonable period of time,” as stipulated by South Dakota labor and employment laws.
South Dakota Labor Law Questions & Answers
Yes, small businesses in South Dakota are required to pay the minimum wage.
Minors under the age of 16 can work up to 4 hours on a school day or 20 hours in a school week. They can work up to 8 hours on a non-school day or 40 hours in a non-school week. Note that federal law may impose stricter limitations.
Yes, if employees work more than 40 hours in a workweek, they must be paid time-and-a-half their regular rate of pay for those hours.
No, South Dakota does not have a law requiring employers to provide meal breaks.
South Dakota Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.