Senate committee kills minimum wage bump

An attempt to raise the state minimum wage over three years to $15 an hour failed in a Senate committee Thursday.

The Senate Commerce and Energy Committee sent SB132 to the 41st legislative day on an 8 to 1 vote.

The bill’s sponsor, Democratic Sen. Reynold Nesiba of Sioux Falls, based the bill on an initiated measure Nebraska voters passed in 2022.

The bill would have ramped up the $15 an hour wage in steps–$12.50 in 2024, $13.50 in 2025, and $15 in 2026.

Nesiba said South Dakotans should be paid at least as much as Nebraskans.

Bill supporter Sister Lynn Marie Welbig with the Presentation Sisters says many of the societal problems the legislature deals with are because people don’t have enough money. She stated the bill would start solving issues like childcare.

Numerous business groups opposed the bill. Some argued the marketplace is handling the issue, with many Sioux Falls businesses offering wages above $15 an hour. Others said the increase would harm small businesses in rural communities.