In November of 2014, South Dakota voters passed Initiated Measure 18, a measure that increased the state’s minimum wage from $7.25 per hour to $8.50. It also included a cost of living adjustment. During the 2015 session, various Republican legislators sponsored a bill (SB 177) that excused employers from paying the minimum wage to employees under the age of 18. They could pay a minimum of $7.50 per hour, and the rate would not be affected by the cost of living.
Why is this called “Referred Law 20?” Once a law has been signed by the Governor, it can be referred to the vote of the people by obtaining 13,871 petition signatures. Cory Heidelberger from Aberdeen led the charge in obtaining those signatures. The law does not go into effect if enough valid signatures are obtained and verified by the Secretary of State’s office. This was the case here; that’s why the referral to the voters.
This vote will be a bit confusing. A ‘yes’ vote is for the change…lower minimum wage for youth workers. A ‘no’ vote keeps the minimum wage at $8.50 for all employees—supporting the 2014 vote of the people.
‘Yes’ people claim that a lower minimum wage establishes a ‘training wage.’ They also claim that the $8.50 minimum wage keeps younger workers out of the workforce.
The ‘no’ side reiterates the fact that the voters of South Dakota passed the minimum wage for ALL by a vote of 55% to 45%. They also cite research that the $8.50 has not hurt the state in any way—unemployment has decreased, and the labor market has continued to expand.
So vote ‘yes’ to lower the minimum wage for those under 18 to $7.50. Vote ‘no’ to keep the minimum wage for all at $8.50 ($8.55 after the 2016 cost of living adjustment.)
Kathy's Corner 