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HOURLY WAGE INDEX

Let’s talk wages in South Dakota

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$11.20

What is the minimum wage in South Dakota?

The South Dakota minimum wage is determined by state law and is currently at $11.20 per hour. It's worth noting that South Dakota has a lower minimum wage for workers who receive tips. The minimum wage for tipped employees is $4.725 per hour, as long as the tips received bring their total compensation to at least the regular minimum wage. It's important to stay updated with the latest information from official sources or legislation to obtain accurate and current details on the South Dakota minimum wage.

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$25.59

What is the average wage in South Dakota?

According to the Bureau of Labor Statistics (BLS), the average hourly wage in South Dakota was $25.59 for all occupations. This is higher than the national average of $22.33 per hour. However, wages can vary greatly depending on the specific occupation. For example, the average hourly wage for management occupations in South Dakota was $47.57, while the average hourly wage for food preparation and serving occupations was $10.12.
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$29.37

What is the living wage in South Dakota?

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

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A guide to hourly labor laws in South Dakota

Verified by Legal Counsel Brooke Davis

  • Standard Minimum Wage: $11.20 (SD.gov) (S.D. Codified Laws § 60-11-3).
  • Tipped Minimum Wage: $5.60 with wages and tips totaling at least minimum wage (SD.gov) (S.D. Codified Laws § 60-11-3). 
  • Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL). 
  • Meal Breaks: No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
  • Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
  • Wage Deductions: Only those required by law, such as taxes, and those authorized by the employee in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203).
  • Final Paychecks: By the next regular payday (S.D. Codified Laws § 60-11-10).
  • Wage Payment Frequency: At least monthly (S.D. Codified Laws § 60-11-9).
  • Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
  • Paid Family and Medical Leave: No paid leave. Up to 12 unpaid weeks in one year for eligible employees (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16:
    • School session: No working during school hours. Up to hours per day and 20 hours per week.
    • Non-school session: Up to eight hours per day and 40 hours per week.
    • Working hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day (SD.gov) (S.D. Codified Laws § 60-12-1 et seq.) (29 C.F.R. § 570.35).
  • Maximum Daily and Weekly Hours for Children 16 and 17: No state/federal law restricting work hours beyond required school hours for non-hazardous occupations. (DoL) (29 C.F.R. § 570.35).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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