60-11-3.1 Minimum wage for tipped employees--Tips credited toward minimum wage--Certain persons excl...
Minimum wage for tipped employees--Tips credited toward minimum wage--Certain persons excluded.
Any employer of a tipped employee shall pay a cash wage of not less than
fifty percent of the minimum wage provided by § 60-11-3 if the employer claims a tip credit against
the employer's minimum wage obligation. If an employee's tips combined with the employer's cash
wage of not less than fifty percent of the minimum wage provided by § 60-11-3 do not equal the
minimum wage, the employer shall make up the difference as additional wages for each regular pay
period of the employer. A tipped employee is one engaged in an occupation in which the employee
customarily and regularly receives more than thirty-five dollars a month in tips or other
considerations. This section does not apply to babysitters or outside salespersons. This section also
does not apply to employees employed by an amusement or recreational establishment, an organized
camp, or a religious or nonprofit educational conference center if one of the following apply:
The establishment, camp, or center does not operate for more than seven months in any
calendar year; or
During the preceding calendar year, the average receipts of the establishment, camp, or
center for any six months of the calendar year were not more than thirty-three and one-third percent of its average receipts for the other six months of the year.
SDCL § 60-11-3 as added by SL 1973, ch 302; SL 1975, ch 316; SL 1978, ch 367, § 2; SL
1982, ch 368, § 2; SL 1990, ch 413, §§ 2, 4; SL 1997, ch 298, § 3; SL 2011, ch 224, § 2, eff. Mar.
17, 2011; SL 2015, ch 279 (Initiated Measure 18), § 2, eff. Jan. 1, 2015.