Wage and Hour Q & A

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What is the minimum wage in South Dakota?

On September 1, 1997, minimum wage increased to $5.15 per hour.

The state minimum wage increase is enacted on the effective date of the increase in the federal minimum wage under the Fair Labor Standards Act of 1938.  This includes the following increases:

  • July 24, 2007 - $5.85
  • July 24, 2008 - $6.55
  • July 24, 2009 - $7.25

Who is covered by the federal minimum wage?

The definitions provided under the Fair Labor Standards Act (FLSA) can be difficult to understand. There are two categories of coverage:

The first is Enterprise coverage which applies to all businesses whose annual gross volume of sales exceeds $500,000. In addition the law specifically includes businesses engaged in the operation of a hospital, or a facility which cares for and houses the elderly or people who have a physical or mental disability. The law also includes all schools and public agencies. All employees of businesses in the Enterprise
category are covered under the provisions of the FLSA.

The second category is Individual coverage. Even a business that is not covered under Enterprise may have individual employees who are covered under the provisions of the FLSA. If an individual is engaged in interstate commerce, production of goods for interstate commerce, handling or working on goods or materials that are moving in interstate commerce, or is involved in an occupation that is closely related or directly essential for the production of goods for interstate commerce, that employee is covered on an individual basis. The Individual category includes those who work in communications or transportation, or who regularly use the postal system or telephone for interstate communications. Even employees of the smallest businesses may be covered on an Individual basis. For example, individuals who accepts checks and credit cards are involved in the interstate banking system and would probably be covered under the FLSA. The same is true for an individual who uses the U.S. Postal Service to ship or order goods anywhere outside the state's boundaries.

What is the minimum wage for waiters/waitresses?

The minimum cash wage for tipped employees is $2.13 per hour, but there are some requirements. An employer must ensure that an employee still receives no less than the minimum wage. Employers should keep records of all tips received by employees.

What are the rules about overtime or comp time pay?  Does it matter if I am a salaried employee?

There are no state labor laws about overtime or comp time, laws that distinguish between salaried and hourly workers, or between part-time and full-time workers.  Federal law may apply.  Visit the United States Department of Labor web site for more information.

What does state law require for rest/meal periods?

South Dakota does not have a law that requires an employer to provide rest breaks and meal periods.

What is the state law on holiday pay?

South Dakota does not have any law that requires holiday pay. It's up to the employer to decide.

When an employee voluntarily terminates employment, when is the final pay check due?

The law requires that all wages are paid on the next regular pay day after an employee quits. The law does allow an employer to withhold the final pay check until the employee returns any property that belongs to the employer.

When an employer fires an employee, when is the final pay check due?

All wages and compensation are due and payable no later than the next regular pay day of the employer.  The law does allow an employer to withhold the final pay check until the employee returns any property that belongs to the employer.

Do employees called for jury duty have to be paid by their employer for the time missed from work?

The law prohibits an employer from firing or demoting an employee for serving as a juror. Time missed from work for jury duty may be with or without pay at the employer's discretion.


If you have any other questions about wage and hour laws, send an e-mail or contact the Division of Labor and Management directly at 605-773-3682.