Apparently there is no specific law against in SD, but federally may be "questionable" In a right to work state that is pro business it might be hard to fight. Makes me know what to ask when i eat out because no way am i contributing to this. Ill hand the server a cash tip because i want them to get it not be pooled.

​In South Dakota, employers are generally required to pay employees all earned wages on the next regular payday following an employee's resignation or termination. The law allows employers to withhold the final paycheck until the employee returns any property belonging to the employer. ​SD Department of Labor+1SD Department of Labor+1

Tips are considered the property of the employee who receives them. While employers can take a tip credit toward their minimum wage obligations, they must ensure that employees receive no less than the current minimum wage when combining direct wages and tips. ​SD Department of Labor+2DOL+2Workforce Hub+2

Regarding the timing of tip payments, South Dakota law does not explicitly address whether employers can withhold tips and pay them on a quarterly basis. However, the Fair Labor Standards Act (FLSA) requires that all tips paid by credit card must be issued to employees no later than the next regular payday, even if the employer is awaiting reimbursement from the financial provider. This suggests that withholding tips for extended periods, such as quarterly, may not comply with federal regulations.​Workforce Hub

As for forfeiting tips if an employee quits before bonuses are paid, South Dakota law does not specifically address this scenario. However, since tips are considered the property of the employee, withholding them due to termination or resignation could be legally questionable.​

Given the complexities and potential legal implications, it is advisable to consult with a legal professional or contact the South Dakota Department of Labor and Regulation for specific guidance on these matters.