South Dakota recently announced its 2026 state minimum wage rate, and the state’s Department of Labor and Regulation (DLR) has officially released a revised minimum wage poster for employers located in the state. On or before January 1st, 2026, all employers in South Dakota will be required to update their workplace postings to reflect an increase in the state minimum wage to $11.85 per hour. The revised poster informs employees of the new wage rate and compliance requirements for businesses statewide.
New Minimum Wage Rates Effective January 1st, 2026
South Dakota's minimum wage will increase from $11.50 to $11.85 per hour beginning January 1st, 2026. This 35-cent increase continues the state's annual cost-of-living adjustment to the minimum wage. The change affects most non-exempt employees working within the state and applies to virtually all South Dakota businesses. It does not apply to independent contractors.
Tipped employees are also subject to a wage increase. Employers must now pay tipped workers a minimum cash wage of $5.925 per hour, up from $5.75. This amount represents at least 50% of the full state minimum wage, in accordance with South Dakota Codified Law (SDCL 60-11-3.1). If an employee's combined cash wage and tips do not meet the $11.85 minimum, the employer is responsible for making up the difference.
Mandatory Poster Update for All Employers
The updated 2026 Minimum Wage poster is a mandatory labor law notice for all South Dakota employers. The poster must be conspicuously displayed in areas where employees can easily view it, such as a break room, employee entrance, or near time clocks. The poster outlines the new minimum wage rates, rules for tipped employees, and contact information for reporting violations to the DLR Division of Labor and Management. The revised notice advises those employees with wage & hour questions or concerns to contact the South Dakota Department of Labor and Regulation at 605-773-3681 or visit dlr.sd.gov/employment_laws.
Failure to post the updated poster can result in citations or penalties during an inspection by the Department of Labor and Regulation. Employers are encouraged to replace outdated versions of the minimum wage notice before the January 1 effective date to avoid any lapses in compliance.
Key Takeaways for Employers
The increases to South Dakota's minimum wage rates for non-tipped and tipped workers require employers to update their compensation practices accordingly. Any worker currently receiving a pay rate below the 2026 rates must receive an increase beginning January 1. All affected businesses in South Dakota must also display the revised minimum wage poster on or before January 1st, 2026.
Labor Law Posters Online has updated its South Dakota State & Federal Labor Law Poster to include the 2026 minimum wage revision. Our all-on-one poster solution ensures that employers display the latest mandatory postings in a single, easy-to-display format. Businesses enrolled in our annual subscription service for South Dakota will automatically receive the updated notice as part of their compliance coverage.