2024 South Dakota Tipped Minimum Wage
The 2024 South Dakota Tipped Minimum Wage is $5.60.
Effective 2024-01-01Source: State Minimum Wage to Increase Jan. 1 (South Dakota Department of Labor and Regulation)Verified 2026-08-31
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Minimum cash wage | $5.40 | $5.60 | +$0.20 (+3.7%) |
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 $5.60 per hour, effective January 1, 2024, up from $5.40 per hour in 2023. The tipped cash wage is set at half the full state minimum wage.
Common questions
- What happens if an employee's tips plus the cash wage do not reach the full minimum wage?
- The employer must make up the difference so that the employee receives at least the full minimum wage.
Every amount on this page is a published figure rather than yours. The Tips needed per hour takes the number you enter and works it out against them, showing which published figure it used.
What a tip credit is, and the cash wage underneath it
Under South Dakota law, employers may pay tipped employees a direct cash wage of $5.60 per hour, which is half the full state minimum wage. This lower cash wage is allowed because South Dakota recognizes that tips will make up the remainder of a tipped worker's earnings. The employer takes a tip credit equal to the difference between the $5.60 direct wage and the full minimum wage. As long as the employee's combined cash wage and tips reach at least the full minimum wage for every hour worked, the arrangement is lawful. This rule applies to workers in South Dakota who regularly receive tips as part of their compensation. The state's Department of Labor & Regulation enforces this standard, which took effect on January 1, 2024, alongside the annual cost-of-living adjustment to the overall minimum wage.
The hourly minimum wage for tipped employees will be $5.60/hour effective Jan. 1, 2024, 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, the law requires that a tipped employee's direct cash wage plus their tips must total at least the full state minimum wage for every hour worked. If your tips in a given pay period do not bring your total earnings up to that level, the employer must make up the difference. This means your employer cannot simply pay you the $5.60 per hour cash wage and leave you short; they are responsible for ensuring you receive at least the full minimum wage when tips and wages are combined. This protection applies to all tipped workers across South Dakota and is enforced by the South Dakota Department of Labor & Regulation. It ensures that the tip credit system does not result in sub-minimum-wage pay for service workers, even in periods when tips are low.
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 $5.60/hour effective Jan. 1, 2024, 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