2020 South Dakota Tipped Minimum Wage
The 2020 South Dakota Tipped Minimum Wage is $4.65.
Effective 2020-01-01Source: State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)Verified 2026-08-31
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Minimum cash wage | $4.55 | $4.65 | +$0.10 (+2.2%) |
Who it applies to
South Dakota employers with tipped employees
What changed this year, and why
South Dakota's minimum cash wage for tipped employees increased to $4.65 per hour, effective January 1, 2020, up from $4.55 per hour in 2019.
Common questions
- What happens if an employee's tips plus the cash wage do not reach the full minimum wage?
- Employers must ensure that the employee's tips plus the cash wage of $4.65 per hour together equal at least the full state minimum wage. If they do not, the employer must make up the difference.
Who counts as a tipped employee
South Dakota defines a tipped employee based on a straightforward rule: your cash wage is set at half the standard state minimum wage because the law expects tips to make up the rest. For 2020, that direct cash wage is $4.65 per hour. If you regularly receive tips as part of your job in South Dakota, your employer is allowed to pay you this lower hourly rate instead of the full minimum wage, on the understanding that your tips will bring your total earnings up to at least the minimum wage. The state designates a special minimum hourly rate for workers who receive tips, and requires that wages plus tips together reach the full state minimum wage. This means that in South Dakota, whether you count as a tipped employee is tied directly to whether your employer pays you the tipped-employee cash wage and whether tips are a regular part of your compensation.
The hourly minimum wage for tipped employees will be $4.65/hour effective Jan. 1, 2020, half the minimum wage for non-tipped employees.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
What a tip credit is, and the cash wage underneath it
In South Dakota, if you work in a job where you receive tips, your employer can pay you a direct cash wage of $4.65 per hour in 2020. This is exactly half of the state's full minimum wage. The difference between what your employer pays you directly and the full minimum wage is called the tip credit. Your employer is allowed to count your tips toward meeting the minimum wage requirement, but only up to that difference. The cash wage underneath the tip credit is $4.65, and that is the lowest hourly amount your employer can pay you before counting tips. You keep all of your tips, and together with the cash wage, your total earnings must reach at least the full minimum wage. If your tips plus the cash wage do not add up to the minimum wage for any workweek, your employer must make up the shortfall. This rule applies to all South Dakota employers, with only limited exceptions.
The hourly minimum wage for tipped employees will be $4.65/hour effective Jan. 1, 2020, half the minimum wage for non-tipped employees.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
When the tips do not get you to the minimum wage
In South Dakota, your employer must ensure that your total earnings - the direct cash wage plus your tips - add up to at least the full state minimum wage for every hour you work. In 2020, the minimum cash wage for tipped employees is $4.65 per hour. If in any workweek your tips are low and your combined earnings fall below the minimum wage, your employer is legally required to pay you the difference. This protects you from earning less than the minimum wage just because business was slow or tips were scarce. The obligation to make up the difference rests entirely on your employer, not on you. This rule applies to all South Dakota employers, with only limited exceptions.
Wages and tips combined must equal at least the minimum wage.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)
- Minimum cash wage
The hourly minimum wage for tipped employees will be $4.65/hour effective Jan. 1, 2020, half the minimum wage for non-tipped employees. Wages and tips combined must equal at least the minimum wage. These increases will apply to all South Dakota employers, with some limited exceptions.
Other years
Every South Dakota Tipped Minimum Wage year · Tipped Minimum Wage in every state