South Dakota’s minimum wage is increasing Saturday to $9.95 an hour for nontipped employees and $4.975 an hour for tipped employees, according to the Department of Labor and Regulation.
The annual minimum wage increases are based on the cost of living as measured by the Consumer Price Index as decided by a law enacted in 2016. Last year’s minimum wage was $9.45 an hour for nontipped employees and $4.725 an hour for tipped employees. The minimum wage never can decrease.
South Dakota’s minimum wage is the second-highest among neighboring states. Minnesota will increase its minimum wage in 2022 to $10.33 an hour from $10.08 an hour, according to Paycor, a company that provides human resource services. Montana is the only other surrounding state increasing its minimum wage with a 45-cents-an-hour increase from $8.75 an hour to $9.20 an hour.
Nebraska’s minimum wage is $9 an hour. Iowa and North Dakota follow the federal rate of $7.25 an hour, which has not changed since 2009.
Wyoming’s minimum wage is $5.15 an hour, and the state is tied with Georgia for the lowest in the U.S., but employers subject to the Fair Labor Standards Act are required to pay the federal rate, according to Paycor.
California’s minimum wage will increase to $15 an hour for employers with 26 or more workers and is the highest among U.S. states. The District of Columbia's minimum wage is $15.20 an hour.