South Dakota Minimum Wage
The minimum wage is annually adjusted by any increase in cost of living, as measured by the Consumer Price Index published by the U.S. Department of Labor. In no case may the minimum wage be decreased.
Non-tipped Employees
The minimum wage for non-tipped employees in South Dakota is $9.30/hour (effective Jan. 1, 2020).
Beginning Jan. 1, 2021, the minimum wage for non-tipped employees in South Dakota will be $9.45/hour.
Tip Credit (Tipped Employees)
The hourly minimum wage for tipped employees is no less than $4.65/hour (effective Jan. 1, 2020).
Beginning Jan. 1, 2021, the hourly minimum wage for tipped employees will be no less than $4.725/hour.
The employer must make sure the employees receive no less than the current minimum wage and must keep a record of all tips received by employees.
Annual Increase
South Dakota's non-tipped minimum wage will be adjusted on an annual basis, increasing at the same rate as the cost of living as measured in the Consumer Price Index published by the U.S. Department of Labor. The amount of the increase will be rounded up to the nearest 5 cents. The minimum wage cannot decrease.
Exemptions
• Seasonal amusement or recreation establishments, babysitters or outside salespersons. See SDCL 60-11-3 and 60-11-3.1.
• Training wage. See SDCL 60-11-4.1.
• Apprentices, person with a developmental disability. See SDCL 60-11-5.
State Minimum Wage Posting
There is no state statute requirement for the following state minimum wage posting; it is provided as a courtesy and for informational purposes only.
2021 State Minimum Wage Posting (effective Jan. 1, 2021) — English | Spanish
Non-tipped Employees
The minimum wage for non-tipped employees in South Dakota is $9.30/hour (effective Jan. 1, 2020).
Beginning Jan. 1, 2021, the minimum wage for non-tipped employees in South Dakota will be $9.45/hour.
Tip Credit (Tipped Employees)
The hourly minimum wage for tipped employees is no less than $4.65/hour (effective Jan. 1, 2020).
Beginning Jan. 1, 2021, the hourly minimum wage for tipped employees will be no less than $4.725/hour.
The employer must make sure the employees receive no less than the current minimum wage and must keep a record of all tips received by employees.
Annual Increase
South Dakota's non-tipped minimum wage will be adjusted on an annual basis, increasing at the same rate as the cost of living as measured in the Consumer Price Index published by the U.S. Department of Labor. The amount of the increase will be rounded up to the nearest 5 cents. The minimum wage cannot decrease.
Exemptions
• Seasonal amusement or recreation establishments, babysitters or outside salespersons. See SDCL 60-11-3 and 60-11-3.1.
• Training wage. See SDCL 60-11-4.1.
• Apprentices, person with a developmental disability. See SDCL 60-11-5.
State Minimum Wage Posting
There is no state statute requirement for the following state minimum wage posting; it is provided as a courtesy and for informational purposes only.
2021 State Minimum Wage Posting (effective Jan. 1, 2021) — English | Spanish
Finding and Keeping Good Employees
It’s no secret that South Dakota employers are constantly on the lookout for good employees. The trick is not just to find them, but to keep them. These days, it’s not just about money and benefits; employees are looking for more than that. Here’s a few tips that may help you to attract and keep good workers.
Treat Employees as an Investment, Not an Expense!
Consider Employing More Nontraditional Workers
Implement a Fresh Approach to Scheduling
Revisit Your Hiring Practices
Be a Great Place to Work
- Turnover is an expensive proposition; weigh the cost of losing a current employee and the lack of productivity vs. the added cost of increased compensation or additional benefits.
Consider Employing More Nontraditional Workers
- High school students, former inmates, retirees, and "gig" workers can fill many of the workforce needs for retail businesses.
Implement a Fresh Approach to Scheduling
- A traditional work day may not be feasible for some potential employees; consider hiring two workers with flexible schedules for 20 hours/week or engage employees in setting their own hours.
Revisit Your Hiring Practices
- Few employees find jobs by responding to a sign in your store window or an ad in the classifieds section of the newspaper; CareerBuilder, Indeed, Monster, Facebook, (others) are prime forums for reaching job seekers.
Be a Great Place to Work
- Do you employees enjoy coming to work? If you experience turnover issues, it may be due to management or the work environment. Be proactive in making your business attractive to employees.
Experience vs Excellence
On-the-job experience isn’t always the best predictor of who will make the best employee for you. Rather than picking someone just because they have experience in your type of business, look at their personality. Does the job involve serving customers? Go for a person with a cheerful attitude who likes to be around people and can multi-task. Does the job involve sitting behind a desk all day every day, with little contact with others? Look for a person who is content to work alone. If the personality doesn’t suit the job, chances are they won’t stick around.
Give Them a Meaningful Challenge
Millennials tend to want a job that means something, along with a chance to learn and grow. Instead of automatically asking experienced employees to tackle a project, hand it over to a young employee and let them know you trust their judgment and ability. They may not do it the same as your long-time staff, but younger workers can offer you new perspectives and fresh ideas, and they just might bring in new customers as a result.
High Praise Indeed
Employees respond to genuine praise. If someone has done something well, let them know you see it and appreciate it. Maybe they were patient and professional with a surly customer. Maybe they spruced up your store by picking up trash in the parking lot or tidying up merchandise without being asked. Maybe they came up with an idea for a promotion. Acknowledge it one-on-one as well as giving them public recognition, such as mentioning it in a staff meeting.
Rewards for a Job Well Done
If possible, find ways to thank and reward your employees – either individually or as a group - with something other than a financial bonus. Some ideas include hand-written notes of appreciation; tickets to a sporting event, concert, play or movie theatre; a paid afternoon off; giving a donation to the charity of the employee’s choice; paying for their membership in a gym for a month; springing for a class they want to attend (many courses are available online if you don’t have local programs available); renting an employee their dream car for a day or two or hiring a limousine to bring them to and from work on a day when their car is in the shop; taking your staff out to dinner; or throwing a staff party just for the fun of it.
Be Flexible
Does a person absolutely have to be on-the-job 8 hours a day, 5 days a week, or can two people split a shift? Perhaps a person with children in school would like to work from 8:30 to 2:30. An early bird may like to come in early in the morning, but not want to work in the afternoon when their energy level ebbs. A parent might not want to work past 4:45 so they can pick up children from daycare, get home and make dinner. A student might not want to start working until 4:00. Someone else might like to work 10 or 12 hours a day, four days a week. Find out from your employees what their ideal hours would be, and see if you can accommodate those preferences.
Ask and Care
Express interest in the lives of your staff. If they’ve had some good news, congratulate them. If they’ve experienced a loss or someone in their family has a critical illness, express sympathy, then be sure to check back with them later to see how they’re doing. You don’t need to be a staff counselor, but knowing the boss cares can help employees feel better about themselves, their job, and you.
Respect Their Choices
People used to get a job and stick with it for for decades. That’s not the case any more, and that’s okay. Do you really want someone to stay with you who is bored, or is eager to learn new skills that you can’t teach them? Recognize that you’re lucky to have good people as long as they want to be there, then let them know you’re happy for them and wish them well when they decide to hit the road in search of a new adventure. If they leave on good terms, they’re more likely to refer friends to you and who knows, they may even show up on your doorstep again someday, wanting to come “home” to your team.
Making an extra effort to let your employees know they’re a valuable part of your team will create a sense of camaraderie and family that will set your business apart from the rest. That will help make finding and keeping good employees a whole lot easier.
On-the-job experience isn’t always the best predictor of who will make the best employee for you. Rather than picking someone just because they have experience in your type of business, look at their personality. Does the job involve serving customers? Go for a person with a cheerful attitude who likes to be around people and can multi-task. Does the job involve sitting behind a desk all day every day, with little contact with others? Look for a person who is content to work alone. If the personality doesn’t suit the job, chances are they won’t stick around.
Give Them a Meaningful Challenge
Millennials tend to want a job that means something, along with a chance to learn and grow. Instead of automatically asking experienced employees to tackle a project, hand it over to a young employee and let them know you trust their judgment and ability. They may not do it the same as your long-time staff, but younger workers can offer you new perspectives and fresh ideas, and they just might bring in new customers as a result.
High Praise Indeed
Employees respond to genuine praise. If someone has done something well, let them know you see it and appreciate it. Maybe they were patient and professional with a surly customer. Maybe they spruced up your store by picking up trash in the parking lot or tidying up merchandise without being asked. Maybe they came up with an idea for a promotion. Acknowledge it one-on-one as well as giving them public recognition, such as mentioning it in a staff meeting.
Rewards for a Job Well Done
If possible, find ways to thank and reward your employees – either individually or as a group - with something other than a financial bonus. Some ideas include hand-written notes of appreciation; tickets to a sporting event, concert, play or movie theatre; a paid afternoon off; giving a donation to the charity of the employee’s choice; paying for their membership in a gym for a month; springing for a class they want to attend (many courses are available online if you don’t have local programs available); renting an employee their dream car for a day or two or hiring a limousine to bring them to and from work on a day when their car is in the shop; taking your staff out to dinner; or throwing a staff party just for the fun of it.
Be Flexible
Does a person absolutely have to be on-the-job 8 hours a day, 5 days a week, or can two people split a shift? Perhaps a person with children in school would like to work from 8:30 to 2:30. An early bird may like to come in early in the morning, but not want to work in the afternoon when their energy level ebbs. A parent might not want to work past 4:45 so they can pick up children from daycare, get home and make dinner. A student might not want to start working until 4:00. Someone else might like to work 10 or 12 hours a day, four days a week. Find out from your employees what their ideal hours would be, and see if you can accommodate those preferences.
Ask and Care
Express interest in the lives of your staff. If they’ve had some good news, congratulate them. If they’ve experienced a loss or someone in their family has a critical illness, express sympathy, then be sure to check back with them later to see how they’re doing. You don’t need to be a staff counselor, but knowing the boss cares can help employees feel better about themselves, their job, and you.
Respect Their Choices
People used to get a job and stick with it for for decades. That’s not the case any more, and that’s okay. Do you really want someone to stay with you who is bored, or is eager to learn new skills that you can’t teach them? Recognize that you’re lucky to have good people as long as they want to be there, then let them know you’re happy for them and wish them well when they decide to hit the road in search of a new adventure. If they leave on good terms, they’re more likely to refer friends to you and who knows, they may even show up on your doorstep again someday, wanting to come “home” to your team.
Making an extra effort to let your employees know they’re a valuable part of your team will create a sense of camaraderie and family that will set your business apart from the rest. That will help make finding and keeping good employees a whole lot easier.
Retail Employment Impacts
South Dakotans have a great work ethic. Our state consistently has one of the lowest unemployment rates in the nation. In March, 2019, South Dakota’s unemployment rate was at 2.8%, the third lowest in the nation (just above North Dakota and Nebraska).
According to the South Dakota Department of Labor and Regulation, a total of 451,000 people were employed, and 13,200 were unemployed. 52,400 of those people were employed in retail trades, and 47,700 in the leisure and hospitality fields.
Retail, hospitality, grocery and service workers are vital to South Dakota. U.S. Bureau of Labor Statistics information from May 2018 shows how many people were taking home paychecks from some of those jobs:
According to the South Dakota Department of Labor and Regulation, a total of 451,000 people were employed, and 13,200 were unemployed. 52,400 of those people were employed in retail trades, and 47,700 in the leisure and hospitality fields.
Retail, hospitality, grocery and service workers are vital to South Dakota. U.S. Bureau of Labor Statistics information from May 2018 shows how many people were taking home paychecks from some of those jobs:
|
42,590 - food preparation and serving-related occupations*
15,970 - retail salespeople 13,080 - cashiers in sales and related occupations 8,800 - customer service representatives 4,170 - maids and housekeeping cleaners 3,230 - first-line supervisors of retail sales workers 2,680 - landscaping and groundskeeping workers 2,030 - hotel, motel and resort desk clerks 2,000 - automotive service technicians and mechanics 1,590 - parts salesperson 1,400 - amusement and recreation attendants 1,150 - pharmacists + 1,350 pharmacy technicians + 40 pharmacy aides 1,060 - heating, ac and refrigeration mechanics and installers 942 - cosmetologists and hair dressers 790 - farm equipment mechanics and service technicians 720 - counter and rental clerks 630 - automotive body and related repairers 610 - butchers and meat cutters 610 - printing press operators 470 - tour and travel guides 370 - bakers 320 - ushers, lobby attendants and ticket takers 300 - tire repairers and changers 280 - tree trimmers and pruners 270 - outdoor power equipment and other small engine mechanics |
240 - lodging managers
240 - meeting, convention and event planners 240 - gaming dealers 160 - furniture finishers 140 - home appliance repairers 140 - motorcycle mechanics 90 - automotive glass installers and repairers 90 - recreational vehicle service technicians 70 - motorboat mechanics and service technicians 70 - bicycle repairers 320 - ushers, lobby attendants and ticket takers 300 - tire repairers and changers 280 - tree trimmers and pruners 270 - outdoor power equipment and other small engine mechanics 240 - lodging managers 240 - meeting, convention and event planners 240 - gaming dealers 160 - furniture finishers 140 - home appliance repairers 140 - motorcycle mechanics 90 - automotive glass installers and repairers 90 - recreational vehicle service technicians 70 - motorboat mechanics and service technicians 70 - bicycle repairers |
*Including chefs, cooks, food service managers, bartenders, waitstaff, fast food counter attendants, dishwashers, hosts and hostesses and other positions. This is 41,760 food prep and serving-related + 830 food service managers.
