South Dakota Decreased Youth Minimum Wage Veto Referendum, Referred Law 20 (2016)

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South Dakota Referred Law 20
Flag of South Dakota.png
Election date
November 8, 2016
Topic
Minimum wage
Status
Defeatedd Defeated
Type
Referendum
Origin
Citizens

2016 measures
Seal of South Dakota.png
November 8
Constitutional Amendment R Approveda
Constitutional Amendment S Approveda
Constitutional Amendment T Defeatedd
Constitutional Amendment U Defeatedd
Constitutional Amendment V Defeatedd
Referred Law 19 Defeatedd
Referred Law 20 Defeatedd
Initiated Measure 21 Approveda
Initiated Measure 22 Approveda
Initiated Measure 23 Defeatedd
Polls
Voter guides
Campaign finance
Signature costs

The South Dakota Youth Minimum Wage Veto Referendum, also known as Referred Law 20, was on the November 8, 2016, ballot in South Dakota as a veto referendum. It was defeated.

A "yes" vote supported Senate Bill 177 (SB 177), a law decreasing the minimum wage for workers under age 18 from $8.50 to $7.50.
A "no" vote opposed SB 177.

SB 177 also would have provided that the youth minimum wage is not pegged to inflation.[1]

Opponents of Senate Bill 177 collected signatures to put this measure before voters, giving them a chance to overturn the law. Thus, those responsible for putting this measure on the ballot advocated for a "no" vote on election day.

Election results

Referred Law 20
ResultVotesPercentage
Defeatedd No256,68671.13%
Yes 104,185 28.87%
Election results from South Dakota Secretary of State

Background

See also: South Dakota Increased Minimum Wage, Initiated Measure 18 (2014)

In November 2014, South Dakotans approved Measure 18, which increased the minimum wage from $7.25 per hour to $8.50 per hour beginning January 1, 2015, and it guaranteed an increase in the minimum wage each year after to account for inflation. Measure 18 was backed by the South Dakota Democratic Party.[2]

Republicans in the South Dakota Legislature responded to voter approval of Measure 18 by introducing Senate Bill 177, which was designed to exempt workers under age 18 from receiving the initiative's required minimum wage of $8.50. Gov. Dennis Daugaard (R) signed SB 177 on March 30, 2015.[3]

Text of measure

Attorney General explanation

The Attorney General's ballot explanation was as follows:[4]

State law requires employers to pay all non-tipped employees a minimum wage, with limited exceptions. Currently, that amount is $8.55 per hour. State law also requires that the minimum wage be adjusted, effective on January 1 of each year, by any increase in the cost of living as measured by the U. S. Department of Labor's Consumer Price Index.

Referred Law 20, if approved, would lower the existing State minimum wage to $7.50 per hour for non-tipped employees under age 18. In addition, no annual cost-of-living wage adjustment would be required for the youth minimum wage.

The referred law would also prohibit employers from taking any action to displace an employee or reduce an employee's hours, wages, or benefits, in order to hire someone at the youth minimum wage.

A vote "Yes" is for lowering the minimum wage to $7.50 per hour for non-tipped employees under age 18.

A vote "No" is against the referred law.[5]

Full text

The full text of the bill was as follows:[6]

AN ACT ENTITLED, An Act to establish a youth minimum wage.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

Section 1. That § 60-11-3 be amended to read as follows:

60-11-3. Every employer shall pay to each employee wages at a rate of not less than eight dollars and fifty cents an hour. Violation of this section is a Class 2 misdemeanor. The provisions of this section do not apply to certain employees being paid an opportunity wage pursuant to § 60-11-4.1, babysitters, employees under age eighteen, or outside salespersons. The provisions of this section also do not apply to employees employed by an amusement or recreational establishment, an organized camp, or a religious or nonprofit educational conference center if one of the following apply:

(1) The establishment, camp, or center does not operate for more than seven months in any calendar year; or

(2) During the preceding calendar year, the average receipts of the establishment, camp, or center for any six months of the calendar year were not more than thirty-three and onethird percent of its average receipts for the other six months of the year.

Section 2. That chapter 60-11 be amended by adding thereto a NEW SECTION to read as follows:

An employer shall pay an employee under the age of eighteen at least seven dollars and fifty cents an hour. This wage is not subject to the annual minimum wage adjustment pursuant to § 60-11-

3.2. No employer may take any action to displace an employee, including a partial displacement through a reduction in hours, wages, or employment benefits, in order to hire an employee at the wage authorized in this Act.[5]

Support for "yes" vote

Those who support/supported a "yes" vote on this measure and opposed the veto referendum petition effort targeting Senate Bill 177 are referred to as supporters in this article.

SD Voice filed to support the "yes" vote.[7]

Official argument for "yes" vote

The official argument for a "yes" vote on this measure as listed in the "South Dakota 2016 Ballot Question Pamphlet" was as follows:[8]

Young people in South Dakota deserve a fair shot at a first job. That’s why South Dakota residents should vote YES on Referred Law 20 – SB 177, an Act that establishes a youth training wage while respecting the will of voters to raise the minimum wage for adults.

When South Dakota approved a minimum wage increase last November, voters might not have realized that the policy could unintentionally price the state’s youngest jobseekers out of the workforce. Sadly, the nonpartisan Congressional Budget Office confirms that this is what happens when the minimum wage goes up.

That’s the problem; SB 177 is the solution.

A study published by Cornell University found that the creation of a youth training wage can help alleviate the negative effects of a minimum wage increase on young employees. It makes intuitive sense: If the state’s small businesses can pay a training wage to young adults who don’t have extensive workplace experience, they’re less likely to “downsize” that job.

That means young people will continue to receive all benefits associated with a first job, like higher pay and greater job security in the future.

Economists have shown that just 20 hours of part-time work per week during the senior year of high school results in annual earnings that are 20 percent higher after graduation, relative to young adults who don’t work. Another study shows that young adults who are unemployed today are missing out on more than a paycheck---they’re also at a greater risk of future unemployment.

You can’t start climbing the career ladder without a first rung. A youth training wage provision would ensure that, even as the minimum wage in South Dakota rises, this first rung still exists.

Michael Saltsman

Research Director

Employment Policies Institute

Saltsman@EPIOnline.org [5]

Opposition to "yes" vote

Those who oppose/opposed a "yes" vote on this measure and supported the veto referendum petition effort targeting Senate Bill 177 are referred to as opponents in this article.

Opponents to "yes" vote

Official argument against "yes" vote

The official argument against a "yes" vote on this measure as listed in the "South Dakota 2016 Ballot Question Pamphlet" was as follows:[8]

Voting NO on Referred Law 20 keeps the current minimum wage for all workers. Voting NO on 20 prevents the creation of an unnecessary and undemocratic sub-minimum wage for teenagers. The state legislature attempted to create this “youth minimum wage” in 2015, but thousands of South Dakota voters prevented that pay cut from taking effect by signing a petition to refer it to a statewide vote. Voting NO on 20 stops that pay cut for good.

There are two reasons to vote NO on 20.

First, Referred Law 20 attacks South Dakota voters. In November 2014, we passed Initiated Measure 18 by a 55% to 45% margin. This statewide vote raised the state minimum wage from $7.25 an hour to $8.50 an hour with an annual inflation adjustment. Thanks to that measure, the state minimum wage is now $8.55 an hour. The state legislature attempted to undermine this measure by creating a lower subminimum wage of $7.50 an hour for workers under age 18. This youth minimum wage tries to overturn our majority vote in the 2014 election. Thus, voters who respect South Dakota’s long history of direct democracy should vote NO on Referred Law 20.

Second, Referred Law 20 is also entirely unnecessary. Despite dire warnings from legislators backing the youth minimum wage, South Dakota’s labor market has continued to expand and unemployment has decreased. Paying young workers the same minimum wage as adults helps younger workers earn more to support their families and go to college without harming South Dakota’s strong economy.

Please, vote NO on Referred Law 20. This legislation attacks the will of South Dakota voters and serves no good purpose in our robust labor market.

Reynold F. Nesiba

201 S. Menlo Ave

Sioux Falls, SD, 57104 [5]

Campaign finance

Total campaign contributions:
Support: $456.82
Opposition: $0.00

As of February 8, 2017, the support campaign for this measure featured one ballot question committee, SD Voice, that received a total of $456.82 in contributions, all of which were cash donations. The support campaign spent $456.82.[7]

No ballot question committees registered to oppose the ballot measure.[7]

Support for "yes" vote

Cash donations

The following ballot question committee was registered to support this initiative. The chart below shows cash donations and expenditures current as of February 8, 2017.[7]

Committee Amount raised[10] Amount spent
SD Voice $456.82 $456.82
Total $456.82 $456.82

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Path to the ballot

See also: Laws governing the initiative process in South Dakota

Opponents of Senate Bill 177 were required to collect a minimum of 13,870 valid signatures by June 29, 2015, for the veto referendum to appear on the November 8, 2016, ballot.[2]

On June 29, 2015, petitioners reported collecting thousands of signatures in excess of the 13,870 requirement.[11] The initiative was certified on June 30. A total of 17,077 signatures were valid.[12]

Cost of signature collection:
Ballotpedia found no petition companies that received payment from the sponsors of this measure, which means signatures were likely gathered largely by volunteers. A total of $0 was spent to collect the 13,870 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $0.[13]

State profile

USA South Dakota location map.svg
Demographic data for South Dakota
 South DakotaU.S.
Total population:857,919316,515,021
Land area (sq mi):75,8113,531,905
Race and ethnicity**
White:85%73.6%
Black/African American:1.6%12.6%
Asian:1.2%5.1%
Native American:8.6%0.8%
Pacific Islander:0%0.2%
Two or more:2.6%3%
Hispanic/Latino:3.3%17.1%
Education
High school graduation rate:90.9%86.7%
College graduation rate:27%29.8%
Income
Median household income:$50,957$53,889
Persons below poverty level:15.3%11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015)
Click here for more information on the 2020 census and here for more on its impact on the redistricting process in South Dakota.
**Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in South Dakota

South Dakota voted Republican in all six presidential elections between 2000 and 2020.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, five are located in South Dakota, accounting for 2.43 percent of the total pivot counties.[14]

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. South Dakota had four Retained Pivot Counties and one Boomerang Pivot County, accounting for 2.21 and 4.00 percent of all Retained and Boomerang Pivot Counties, respectively.

More South Dakota coverage on Ballotpedia

Related measures

Minimum wage measures on the ballot in 2016
StateMeasures
ArizonaArizona Minimum Wage and Paid Time Off, Proposition 206 Approveda
WashingtonWashington Minimum Wage Increase, Initiative 1433 Approveda
ColoradoColorado $12 Minimum Wage, Amendment 70 Approveda

Recent news

The link below is to the most recent stories in a Google news search for the terms South Dakota Youth Minimum Wage. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

See also

External links

  • Cory Heidelberger - 912 N 1st St., Aberdeen, SD 57401

Footnotes