SD · state labor law, 2026
South Dakota labor laws: minimum wage, overtime, leave, final pay and breaks
South Dakota indexes its wage to prices every year and leaves almost everything else to federal rules.
South Dakota and federal rules checked on official sources on · Checked by Radif Partners · How we calculate
- Minimum wage now
- $11.85/h
- statewide
- Next change
- none announced
- checked October 11, 2026
- Tipped cash wage
- $5.93/h
- tips must make up the rest
- Overtime
- 40 h/week
- federal FLSA rule
- Paid sick leave
- no state law
- employer policy
- Paid family leave
- no program
- FMLA is unpaid
South Dakota's minimum wage is $11.85 an hour since January 1, 2026, and it changes on a fixed formula: it follows the cost of living every year, any increase is rounded up to the next 5 cents, and the rate can never go down. That puts a full-time job at $24,648 a year, $9,568 more than at the federal $7.25. Tipped employees receive half the minimum, $5.93 an hour, and the employer must make sure tips bring them to $11.85. Beyond the wage, the state adds little: no overtime statute, so the federal 40-hour week applies; no paid sick leave; no paid family leave program; and no meal or rest break requirement for adults. Final wages are due by the next regular payday, or once company property is returned if that comes later. The 2027 rate had not been announced when this page was checked.
Gross pay for this week in South Dakota
$474
Time and a half after 40 hours in a week (federal rule)
| Minimum wage in South Dakota now | $11.85 an hour |
| Your rate against it | At or above the minimum |
| Overtime: none this week | $0 |
| Paid sick leave earned in a year | No statewide paid sick leave law |
| Breaks owed in a 8-hour shift | None required for adults |
| Final paycheck if fired | by the next regular payday (or when the employee returns employer property, if later) |
| Unused vacation at the end | No state rule: the employer policy decides |
| Paid family leave | No state program |
40 hours a week at $11.85. State rule applied. Minimum wage, overtime and leave rules have exceptions by employer size and industry. How this is calculated.
A wage that only moves up
The Department of Labor and Regulation recalculates the minimum each year from the cost of living, and the statute adds two features that favor workers. The increase is rounded up, never down, to the nearest 5 cents, and a falling price index cannot lower the rate. As of this check, the department had not yet published a 2027 number, so $11.85 is the only confirmed rate. State law (SDCL 60-11-4.1) also allows a training wage, but the general rate covers most private jobs. Over a year, $11.85 gives $24,648 on a 40-hour schedule and $18,486 on 30 hours a week. Each annual step lifts the general and the tipped figures together, because the second is defined as half of the first, so a server's base pay moves on the same date as everyone else's.
Do your tips cover the minimum wage?
Employer top-up owed per hour
$1.92
| Cash wage | $5.93 |
| Cash wage + tips | $9.93 |
| Minimum wage in South Dakota | $11.85 |
| Top-up over a 30-hour week | $58 |
Tipped pay at half the minimum
South Dakota ties the tipped cash wage to the general rate: half of it, which gives $5.93 an hour in 2026. That is well above the federal $2.13 and rises automatically with each annual adjustment. The employer remains responsible for the gap. A bartender who works 25 hours in a week and collects $140 in tips has $288.13 from cash wages and tips; the law requires $296.25, so the employer owes another $8.13. The calculator above runs the same comparison for your own hours. Tipped minimum wages by state put the half-rate rule in context.
Overtime and breaks under federal rules
The department says it plainly: South Dakota has no labor law on overtime or comp time. The federal Fair Labor Standards Act fills the space for covered employers. A cook paid $18 an hour on six 8-hour shifts works 48 hours and earns $936, of which $216 is the time-and-a-half portion for the 8 hours past 40. There is also no state rule requiring meal periods or rest breaks; federal law only says that short breaks an employer chooses to give are paid time. Salaried employees need at least $684 a week, plus the duties test, to be exempt.
Final pay, leave and unions
Whether you quit or are fired, everything earned is due by the next regular payday. If you hold company tools, keys or equipment, the employer can wait until you return them. The state has not issued a rule on paying out unused vacation in the pages we read, so the employer's policy is the place to look. Leave rights come from the federal FMLA, which gives up to 12 weeks of unpaid job protection to eligible workers at employers with 50 or more employees. State law guarantees that no one has to join a union or pay it to keep a job, and employment is at will. For a disputed paycheck, the Division of Labor and Management is the state contact. Right-to-work states lists the others.
South Dakota employment rules at a glance, 2026
Minimum wage schedule
| From | Who it covers | Rate | Note |
|---|---|---|---|
| January 1, 2026 | Statewide | $11.85 | Indexed annually to CPI, rounded up to the nearest 5 cents |
Workers covered by both laws get the higher rate. Training wage allowed under SDCL 60-11-4.1. Read the South Dakota rule.
Overtime
Time and a half after 40 hours in a week. The salary test for exempt employees is the federal $684 a week. No state overtime law; federal FLSA applies. source
Sick leave and family leave
South Dakota has no statewide paid sick leave law for private employers; leave depends on the employer's policy or a city ordinance. No statewide paid sick leave law for private employers.
No state paid family leave insurance: the federal FMLA gives eligible workers up to 12 weeks of unpaid, job-protected leave.
Final paycheck and unused vacation
Fired or laid off: by the next regular payday (or when the employee returns employer property, if later). Quitting: by the next regular payday (or when the employee returns employer property, if later). Vacation: follows the employer policy. source
Meal and rest breaks
No meal break is required for adults by state law. No paid rest break is required for adults. source
Unions and dismissal
South Dakota is a right-to-work state: a union contract cannot require you to pay dues or fees to keep your job. Employment is at will: either side may end it at any time, except for an illegal reason such as discrimination or retaliation, or against a contract. source