Current Minimum Wage on Tipped Workers in South Dakota

1. What is the current minimum wage for tipped workers in South Dakota?


The current minimum wage for tipped workers in South Dakota is $4.65 per hour.

2. Is there a difference between the tipped minimum wage and regular minimum wage in South Dakota?


Yes, there is a difference between the tipped minimum wage and regular minimum wage in South Dakota. The tipped minimum wage is $4.35 per hour, while the regular minimum wage is $9.30 per hour. This means that workers who receive tips can be paid a lower hourly wage, as long as their tips bring their total earnings up to at least the regular minimum wage of $9.30 per hour.

3. How much do tipped workers make per hour in South Dakota?


As of 2021, tipped workers in South Dakota are entitled to the state minimum wage of $9.45 per hour. However, employers may take a tip credit of up to $6.00 per hour, which means tipped workers can be paid as little as $3.45 per hour.

4. Has the minimum wage for tipped employees increased in South Dakota recently?


Yes, the minimum wage for tipped employees in South Dakota has increased recently. As of January 1, 2021, the minimum wage for tipped employees in South Dakota is $4.725 per hour, which is an increase from the previous rate of $4.65 per hour. This increase was part of a scheduled adjustment to the state’s minimum wage that is based on changes in the cost of living.

5. Are there any pending changes to the tipped minimum wage in South Dakota?


As of May 2021, there are no pending changes to the tipped minimum wage in South Dakota. The current tipped minimum wage in the state is $4.95 per hour and is tied to the federal tipped minimum wage rate. Any changes to the federal tipped minimum wage would also affect South Dakota’s minimum wage for tipped employees.

6. Can a tipped worker afford a living wage in South Dakota?


In South Dakota, the minimum wage for tipped workers is $4.86 per hour. This means that a tipped worker would need to earn at least an additional $5.89 per hour in tips in order to match the state’s minimum wage of $10.75 per hour for non-tipped workers. However, according to data from the Economic Policy Institute, the median hourly wage for tipped workers in South Dakota is only $8 per hour, leaving them far below the state’s minimum wage and struggling to afford basic living expenses.

According to the MIT Living Wage Calculator, the living wage for a single adult in South Dakota is $11.84 per hour, assuming they work full-time (40 hours per week). For a family of four with two working adults, it is estimated that both adults would need to earn at least $15.44 per hour to meet their basic needs.

Based on these calculations, it appears that a tipped worker in South Dakota would have difficulty affording a living wage on their income alone. They may need to rely on multiple jobs or government assistance in order to make ends meet.

Additionally, the fact that tipped workers often experience unpredictable and fluctuating income due to factors such as seasonality and customer generosity can make it even more challenging for them to consistently meet their financial needs.

Overall, while a tipped worker in South Dakota may be able to survive on their current wages, it is unlikely that they could comfortably afford a living wage without significant changes and improvements within the industry.

7. How does South Dakota’s minimum wage for tipped employees compare to neighboring states?


As of 2022, South Dakota has the highest minimum wage for tipped employees in the region, at $4.415 per hour. This is significantly higher than neighboring states such as North Dakota ($4.86 per hour), Montana ($8.65 per hour), Wyoming ($5.15 per hour), Nebraska ($9.00 per hour), and Iowa ($4.35 per hour). However, it is lower than Minnesota’s minimum wage for tipped employees, which is $10.08 per hour.

It should be noted that some cities and counties within these states may have their own minimum wage laws, which could differ from the state’s minimum wage rate for tipped employees. It is important to check with your employer or local labor department to determine the specific minimum wage applicable to your location.

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in South Dakota?


Yes, under South Dakota law, employers are required to ensure that tipped employees earn at least the state’s minimum wage of $9.45 per hour (as of 2022). If a tipped employee’s hourly wages plus tips do not equal or exceed the minimum wage during a pay period, the employer must make up the difference in their paycheck. This additional amount is known as a “tip credit,” and it is calculated by subtracting the minimum wage from the employee’s total hourly earnings. For example, if an employee earns $5 per hour in tips and the current minimum wage is $9.45 per hour, the employer must pay them an additional $4.45 per hour to meet the minimum wage requirement.

It is important to note that employers are only allowed to take a tip credit if they follow certain regulations set by the U.S Department of Labor’s Wage and Hour Division. These regulations include ensuring that employees receive proper notices regarding the tip credit, tracking and documenting tipped hours worked, and allowing employees to keep all of their tips.

In addition to meeting minimum wage requirements, there are also federal and state laws regulating how tips should be distributed among employees and whether employers can require tip pooling or sharing arrangements. It is recommended that employers consult with legal counsel to ensure they are following all applicable labor laws related to tipped workers.

9. Do cities within South Dakota have their own separate tipped minimum wage rates or is it consistent throughout the state?


The minimum wage rates, including tipped minimum wage, is consistent throughout the state of South Dakota. Cities within South Dakota do not have their own separate tipped minimum wage rates.

10. Has there been any discussion of increasing the minimum wage for tipped employees in South Dakota?


There have been some discussions about increasing the minimum wage for tipped employees in South Dakota, but no formal proposals or legislation has been introduced. The current minimum wage for tipped employees in South Dakota is $4.65 per hour, which is 50% of the overall minimum wage of $9.30 per hour. Some advocates argue that this is not a livable wage and should be increased to bring it closer to the overall minimum wage, while others argue that it could negatively impact small businesses and result in job losses. Ultimately, any potential changes to the minimum wage for tipped employees would need to be approved by the state legislature.

11. Does South Dakota have a different minimum wage for servers versus other types of tipped workers?

No, South Dakota does not have a separate minimum wage for servers or other tipped workers. The state follows the federal minimum wage rate of $2.13 per hour for tipped employees, with the expectation that their tips will bring their earnings up to at least the standard minimum wage of $7.25 per hour.

12. How does South Dakota’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?


As of January 1, 2019, South Dakota’s tipped employee minimum wage is $4.86 per hour, which is slightly lower than the federal rate of $2.13 per hour. However, if an employee’s tips do not bring their total hourly wage up to the regular state minimum wage of $9.10 per hour, the employer must make up the difference.

Neighboring states have differing rates for tipped employees:

– North Dakota: $4.86 per hour (same as South Dakota)
– Nebraska: $2.13 per hour (same as federal rate)
– Iowa: $4.35 per hour
– Minnesota: $8.04-$9.86 per hour (depending on business size and location)
– Wyoming: no separate tipped employee minimum wage; they must be paid at least the standard state minimum wage of $5.15 per hour

It should be noted that some cities in Minnesota, such as Minneapolis and St. Paul, have enacted higher minimum wages for both regular and tipped employees.

Overall, South Dakota’s current tipped employee minimum wage is on par with neighboring states and slightly lower than the federal standard.

13. In South Dakota, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?


Yes, employers in South Dakota are allowed to use tips as a credit towards fulfilling their obligation to pay the state minimum wage for employees. The current minimum wage in South Dakota is $9.30 per hour, but tipped employees may be paid a reduced hourly rate of at least $2.13 as long as their tips bring them up to the standard minimum wage. This practice is known as a “tip credit.” Employers must inform employees of this practice and must also ensure that the employee’s total earnings (including tips) meet or exceed the standard minimum wage for each hour worked.

14. Is there a plan to increase the tip credit percentage in South Dakota, which currently has one of the lowest rates nationwide?

There are currently no plans to increase the tip credit percentage in South Dakota. The state has not made any recent changes to its tip credit rate, which is currently set at 50% of the minimum wage. It is possible that there may be discussions or proposals in the future to change the tip credit rate, but there is no guarantee that it will be increased. Any such changes would likely depend on various factors, including economic conditions and political considerations.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in South Dakota?


No, there are no exemptions from paying the state’s established tip credit rate for any specific industries or professions in South Dakota. All employers must follow the same tip credit laws as designated by state and federal regulations.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?


The ability of legislators to override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State] depends on the specific laws and regulations in place. In general, state law prevails over local law, but some states allow for local governments to set their own minimum wage rates for tipped workers. It is important to consult the relevant state laws and regulations to determine the specifics of this issue in [State].

17. Has South Dakota recently adjusted its tip pooling laws affecting server wages?


Yes, on March 23, 2018, South Dakota passed Senate Bill 130 which allows for the distribution of tips among all employees who regularly and customarily receive tips, including both servers and non-tipped employees such as cooks and dishwashers. This law aligns with federal regulations under the Fair Labor Standards Act (FLSA) which allow employers to implement tip pooling arrangements between tipped and non-tipped employees. The law also prohibits employers from keeping any portion of an employee’s tips received through credit card charges or any other form of payment. However, employers are still allowed to deduct a percentage to cover credit card processing fees.

18. How do South Dakota’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?


According to the United States Department of Labor, as of August 2021, the federal minimum wage for non-tipped workers is $7.25 per hour. In South Dakota, the current state minimum wage for non-tipped workers is also $7.25 per hour.

For tipped restaurant workers, the federal minimum wage is $2.13 per hour (with tips expected to make up the difference), while in South Dakota, the state minimum wage for tipped employees is $4.25 per hour.

This means that South Dakota does not have a separate minimum wage specifically for restaurant personnel and follows the federal standards for tipped workers.

19. In South Dakota, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?

Most likely, yes. In the United States, the Fair Labor Standards Act (FLSA) allows for two different hourly rates for tipped employees and non-tipped employees. Tipped employees are defined as those who regularly receive more than $30 per month in tips, and they can be paid a lower hourly rate as long as their total earnings (including tips) equal at least the federal minimum wage of $7.25 per hour. This is known as the “tip credit” system.

In South Dakota, the state minimum wage is currently set at $9.10 per hour. However, employers are allowed to pay tipped employees a lower hourly rate of $4.55 per hour under the tip credit system, as long as their total earnings (including tips) still equals at least $9.10 per hour.

However, there are certain criteria that must be met in order for an employer to apply the tip credit system in South Dakota:

1. The employee must receive notification from their employer about how much cash wage they will receive (at least $4.55 per hour).
2. The employee must earn enough tips to make up for any difference between the cash wage ($4.55) and the full minimum wage ($9.10).
3. The employee must retain all of their tips except where a valid tip pooling arrangement is in place.
4. The employer cannot use the tip credit if it results in an employee’s wages falling below average hourly tips earned.
5. Employers cannot deduct or charge fees for accepting credit card payments on behalf of tipped employees.

Additionally, some categories of employees may be exempt from receiving tipped wages and may therefore be entitled to receive minimum wage without tip credits:

1. Employees who do not customarily or regularly receive tips
2. Seasonal workers (defined as working for less than six months during a calendar year)
3. Students working part-time while still enrolled in school
4. Certain employees under the age of 20 during their first 90 consecutive days of employment

In short, different establishments in South Dakota may be categorized differently based on the type of employees they have and whether or not those employees are eligible for tip credit wages. It is important for employers to comply with federal and state laws regarding tipped employee wages to avoid any potential legal issues. Employees should also educate themselves on their rights and ensure they are receiving proper compensation for their work.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?

Unfortunately, there is not a single source that provides comprehensive information on how each US state and territory has approached minimum wage laws for tipped workers. However, there are some resources that can provide information on specific states or comparisons between states. Here are a few options:

1. US Department of Labor: The Department of Labor’s Wage and Hour Division website has information on each state’s minimum wage laws and whether or not they have a separate minimum wage for tipped workers. This can be found under the section “Minimum Wages by State” on their website.

2. National Employment Law Project: The National Employment Law Project (NELP) has a resource called the “Tipped Workers Resource Center” which provides information on the current tipped minimum wage in each state and territories, as well as legislative updates and reports.

3. Economic Policy Institute: The Economic Policy Institute (EPI) has a webpage dedicated to tracking minimum wage laws for tipped workers in all 50 states, with historical data dating back to 1995.

4. State government websites: Many state government websites will have information on their respective minimum wage laws, including any specific provisions for tipped workers.

It may also be helpful to search for news articles or reports from local media outlets or organizations focused on labor issues in the particular state you are interested in to get more detailed and up-to-date information.