Steric bulk of the nucleophile will slow the rate of an SN2 down, but doesn't necessarily shut the reaction down completely.
A good example is t-BuO-K+, which is often used when you want an E2 elimination to occur. The steric bulk of the nucleophile/base slows the SN2 pathway down and E2 predominates.
With your case, though, you're using methyl iodide as electrophile, which can't undergo E1 or E2 (or SN1 for that matter). Also, thiolates (RS-) are weak bases and excellent nucleophiles to begin with...the t-Bu may slow it down a bit, but it's going to work.
On a side note: t-BuSH has it's own problems with smell. It's one of the compounds added to natural gas to make leaks detectable. It also doesn't oxidize with bleach as well as other thiols. In short, if you use t-BuSH you should let everyone know or expect a visit from the fire dept.