See SDLC60-11-3 and 60-11-3.2. Employers with tipped employees must pay a cash wage of no less than $4.725 per hour, which is no less than 50% of the state minimum wage. See SDCL 60-11-3.1. South Dakota state minimum requirements apply to all employees; however, no minimum wage requirements apply to independent contractors.
Additional information from the South Dakota Department of Labor and Regulation available at dlr.sd.gov/employment_laws.