SIOUX FALLS, S.D. (KELO AM) - The state minimum wage will increase from $8.50 to $8.55 beginning the first of the year.
Dawn Dovre with the State Department of Labor says this is the first time the minimum wage is adjusted by the cost of living.
This year's increase was 0.2% and is rounded up to the nearest five cents.
The hourly minimum wage for tipped employees will be $4.28 an hour January first. Wages and tips combined must equal at least the minimum wage.
The increases will apply to all South Dakota employers, with some limited exceptions.