Inflation driving another jump in South Dakota's minimum wage
Labor office reminds employers decade-old compensation law requires low-wage earners receive pay adjustment in 2026
South Dakota’s lowest wage earners are set for a pay bump in the months ahead.
The state Department of Labor and Regulation is reminding employers that minimum wage in South Dakota will climb again in the new year — this time from $11.50 to $11.85 an hour for non-tipped employees.
The increase marks the latest annual adjustment under a state law that ties the minimum wage to inflation. Each year, the rate is recalculated based on changes in the Consumer Price Index, a federal measure of the cost of living published by the U.S. Department of Labor.
The adjustment is 3 percent this year.
The newly-set minimum wage takes effect annually on Jan. 1, a result of a voter-approved measure adopted in 2014, which also set a lower minimum wage for waiters, waitresses, and other tipped employees. Employers in South Dakota will be required to pay those workers a minimum of $5.93 an hour in 2026, though wages and tips combined must still meet the $11.85 threshold, according to the labor office.
Good!
Yeah duh, we already know, since we are the ones trying to hire people in a fully employed state