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Minimum wage spelt out in alphabet blocks on a stack of dollar bills.

SD Minimum Wage Increase for 2023

Effective on January 1, 2023, the South Dakota minimum wage increases to $10.80/hour for non-tipped employees, and $5.40/hour for tipped employees.

Employers should use the minimum wage that applies based on when the employee worked, not on when the pay date occurs.  For instance, if all work hours were done in the last week of 2022 but the paycheck is written in 2023, the 2022 minimum wage still applies.  

For businesses that are paying employees with the 2022 minimum wage: you’ll need to update your payroll system or tracking with the changes.  

If your payroll period crosses the end of the year, you are required to adjust the wage for the portion of the pay period occurring after 2022 for hours worked.  You’ll also need to consider this for overtime calculations as well.  

If you are unsure how to handle the increase, reach out for help!  Payroll mistakes are some of the mostly costly mistakes to fix if you wait until after the fact!