South Dakota Governor Daugaard has signed into law S.B. 177 which allows employers to pay employees under the age of 18 a reduced minimum wage of $7.50. This amount is not subject to the annual minimum wage adjustment. The new law takes effect on July 1. It also prohibits employers from displacing any employee, including a partial displacement through a reduction in hours, wages or employment benefits, in order to hire an employee at the reduced youth rate.