By Kacie Svoboda
Last November, South Dakota voters approved an increase to the state's minimum hourly wage from $7.25 to $8.50 an hour by a 55 to 45 percent vote. The measure also increased the $2.13 hourly wage for tipped workers to half the minimum wage and tied future increases to the cost of living. These new minimums went into effect on Jan. 1.
On March 20, South Dakota Gov. Dennis Daugaard signed SB 177, a controversial bill that reduces that minimum wage for a segment of the working population by $1. SB 177 establishes a lower minimum wage for workers under 18 years old. This youth minimum wage also does not follow the provisions for increases based on the cost of living.
The South Dakota Democratic Party was against SB 177. In a press release, prior to the signing of the bill, state party chair Ann Tornberg called on Daugaard to veto the youth minimum wage bill.
“South Dakotans overwhelmingly supported the initiated measure to raise the minimum wage,” she said. “Please keep your promise to leave this issue alone.”
The rationale of supporters of the bill was that the higher minimum wage would cause the teenage unemployment rate to rise. Increasing the payroll costs for employers would force them to cut the hours of their younger workers or hire fewer employees to offset the financial impact of the increased wages.
The signing of this bill affects many local teenagers and the businesses that employ them. A great majority of area teenagers are employed at seasonal jobs during the summer months and a large percentage of those are paid minimum wage. One of these teenagers is Brianna Lee, 16, who will work her third summer at Hill City’s Turtle Town. Lee said she thought it might be difficult for small businesses to pay the $8.50.
Available only in the print version of the Hill City Prevailer News. To subscribe, call 605-574-2538.
Last November, South Dakota voters approved an increase to the state's minimum hourly wage from $7.25 to $8.50 an hour by a 55 to 45 percent vote. The measure also increased the $2.13 hourly wage for tipped workers to half the minimum wage and tied future increases to the cost of living. These new minimums went into effect on Jan. 1.
On March 20, South Dakota Gov. Dennis Daugaard signed SB 177, a controversial bill that reduces that minimum wage for a segment of the working population by $1. SB 177 establishes a lower minimum wage for workers under 18 years old. This youth minimum wage also does not follow the provisions for increases based on the cost of living.
The South Dakota Democratic Party was against SB 177. In a press release, prior to the signing of the bill, state party chair Ann Tornberg called on Daugaard to veto the youth minimum wage bill.
“South Dakotans overwhelmingly supported the initiated measure to raise the minimum wage,” she said. “Please keep your promise to leave this issue alone.”
The rationale of supporters of the bill was that the higher minimum wage would cause the teenage unemployment rate to rise. Increasing the payroll costs for employers would force them to cut the hours of their younger workers or hire fewer employees to offset the financial impact of the increased wages.
The signing of this bill affects many local teenagers and the businesses that employ them. A great majority of area teenagers are employed at seasonal jobs during the summer months and a large percentage of those are paid minimum wage. One of these teenagers is Brianna Lee, 16, who will work her third summer at Hill City’s Turtle Town. Lee said she thought it might be difficult for small businesses to pay the $8.50.
Available only in the print version of the Hill City Prevailer News. To subscribe, call 605-574-2538.