Minimum Wage Rising to $8.85 in 2018
South Dakotas minimum wage will increase 20 cents to $8.85 an hour next year. Thats the largest jump since South Dakotans approved raising the minimum wage to $8.50 an hour and implementing an automatic annual cost-of-living adjustment in the 2014 election. (On behalf of the South Dakota Democratic Party that brought you Initiated Measure 18 and helped reject the Republican effort to repeal the provision of that law applying the minimum wage to young workers, youre welcome.)
The minimum wage hike is pegged to the Consumer Price Index (for urban consumers) as calculated by the federal Department of Labor in August. Last month, the CPI-U rose 0.4%, bringing the average for the past 12 months to 1.9%. $8.50 + $8.50*1.9% = $8.814, and statute says keep it neat and round to the nearest nickel, so voilà$8.85.
Servers hustling for tips get half minimum, so they will see their guaranteed pay go up a dime to $4.425 an hour.
The new minimum wage takes effect on January 1.
Read more: http://dakotafreepress.com/2017/09/22/minimum-wage-rising-885-2018/