PIERRE, S.D. — Workers earning minimum wage in South Dakota can expect an increase in their earnings this coming January.

The South Dakota Department of Labor and Regulation announced that the minimum wage for employees who do not receive tips will go up by 30 cents, reaching $11.50 per hour starting January 1. Additionally, the minimum wage for tipped employees will also rise, reaching $5.75 per hour. In the state, the minimum wage for tipped employees is set at half of the nontipped wage, ensuring that wages and tips combined meet or exceed the nontipped wage threshold.

The state implements an annual adjustment to the minimum wage in accordance with changes in the cost of living, which is gauged using the Consumer Price Index, according to a statement released by the state on Wednesday. This annual adjustment was established by a law enacted in 2016 to correlate wage increases with inflation.

While the federal minimum wage stands at $7.25, many states have opted for their own higher minimum wage laws to provide more support for low-wage workers.

Federal regulations permit businesses to pay tipped employees, such as waiters, bartenders, and hotel staff, less than the minimum wage, provided that the earnings from tips sufficiently supplement their pay. In the upcoming November elections, voters in Arizona and Massachusetts will vote on proposals that aim to modify the lower minimum wage for tipped employees.

One proposal in Arizona, endorsed by state Republicans along with the Arizona Restaurant Association, seeks to reduce the minimum wage for tipped employees to 25% less than the regular minimum wage, on the condition that their total earnings, including tips, exceed that minimum by at least $2.

Meanwhile, residents in Massachusetts are considering a measure to abolish the tiered minimum wage system altogether by the year 2029.