Does South Dakota set its state minimum wage by the federal standard?

South Dakota is one of 34 states and territories that have a minimum wage higher than the federal rate. 

The state’s minimum wage of $11.50 an hour increased from $11.30 on Jan. 1, 2025, compared to the federal minimum wage of $7.25. It had not been changed since 2009. 

That sets South Dakota apart from several regional states. North Dakota, Wyoming and Iowa all have minimum wages set to the federal rate. Only Nebraska ($13.50) has a rate higher than South Dakota. Minnesota’s is $11.13 as of June 2025.

South Dakota’s minimum wage changes annually, increasing at the same rate as the cost of living set by the Consumer Price Index. 

The federal rate is lower than the poverty level of $15,650 a year, set by the Department of Health and Human Services guidelines. A worker earning the federal minimum makes $15,080.