Employment and labor laws in South Carolina [Updated 2024]
To maintain a balanced employment relationship with employees, following labor and employment laws that protect workers from unfair treatment, ensuring fair pay, and prioritizing workplace safety is essential. The cost of replacing an employee can range from 50% to 200% of their annual salary. Maintaining a healthy and safe work environment not only saves you money but also creates a positive relationship with your employees.
Employment and labor laws may differ from state to state, and in South Carolina, they’re often similar to federal regulations but may not be as strict or detailed. From minimum wage to overtime pay and leaves of absence, businesses are responsible for knowing and following state regulations.
Rippling’s Professional Employer Organization service can handle your tax registration and management for faster business growth in South Carolina and beyond.
Employment vs. labor law: What’s the difference?
Although employment and labor law are similar, they are legally different terms. Employment law primarily concerns the legal relationship between an employer and an individual employee. Labor law comes into play when a dispute or issue involves a collective group of employees (like unions) and the employer.
Here’s the gist of what employment and labor laws each encompass:
- Employment law covers working hours, wages and wage disputes, wrongful termination, working conditions, hiring practices, workplace discrimination, and retaliation.
- Labor law deals with forming, operating, and regulating unions, collective bargaining agreements, strikes, lockouts, and union membership and dues.
Wages and hours in South Carolina
South Carolina is one of 20 states with the same minimum wage as the federal rate. The South Carolina Department of Labor, Licensing and Regulation manages the payment of wages under the Payment of Wages Act, which establishes a process for employers to inform their workforce of their employment conditions, including working hours, salary, and benefits. Employers must maintain specific records of their employees and guarantee accurate payment under the Act.
Minimum wage in South Carolina
In South Carolina, the minimum wage rate is equal to the federal minimum wage rate of $7.25 per hour. The Fair Labor Standards Act (FLSA) regulates the federal minimum wage for non-salaried employees. There are a few exceptions in South Carolina:
- Employers with tipped employees. Tipped employees may be paid a cash wage of $2.13 per hour, but their tips must ensure they earn at least $7.25 per hour, consistent with federal tip credit rules.
- Full-time students. Employers offering work-study programs must pay full-time student workers at least 85% of the South Carolina minimum wage, which is currently $6.16 per hour. They must also comply with child labor laws and school hours. Under these regulations, students can work for a maximum of 20 hours per workweek and 40 hours during summer break.
- Training workers under 20 can be paid a training wage of $4.25 per hour during their first 90 days of employment. Once a worker reaches 90 consecutive days of work, they must receive minimum wage.
Rippling automatically flags minimum wage violations based on state laws and regulations, making it easy to comply with local laws, even when your workforce is distributed.
Overtime pay in South Carolina
In South Carolina, there are no state-specific overtime laws, so federal laws apply to all workers in the state. The Fair Labor Standards Act requires employers to pay non-exempt employees overtime pay at a rate of time-and-a-half (1.5x the employee's regular pay rate) for any hours worked over 40 in a workweek.
In South Carolina, the Department of Labor defines the workweek as a seven-day period starting at 12:01 a.m. on Sunday and ending at midnight on Saturday—consistent with the method used by the FLSA.
Rippling’s payroll software ensures compliance with South Carolina's overtime pay regulations by automatically applying the correct pay rates when an employee’s hours trigger overtime requirements.
Pay transparency in South Carolina
In the US, laws regarding pay transparency are becoming more prevalent—about 27% of the US labor force is now covered by pay range transparency laws.
South Carolina doesn’t have any statewide pay transparency laws. However, a bill on pay equity was introduced in March 2023 at the South Carolina General Assembly. Both Columbia, SC and Richland County, SC enacted salary history bans in 2019 for employees of the city and county respectively.
Employees should also know their rights under the National Labor Relations Act (NLRA), which protects employees' rights to discuss their wages with one another.
Rippling enforces compensation bands and automatically flags any adjustments outside the band, allowing for easy review and approval or denial on a case-by-case basis.
Breaks and rest periods in South Carolina
In South Carolina, employers aren’t legally obligated to provide breaks or lunch periods for their employees. However, employees must be compensated if their employers choose to offer breaks that last between five and 20 minutes. Meal periods or breaks that exceed 30 minutes aren’t required to be paid unless the worker is required to stay at their workstation during the break.
Per the South Carolina Pregnancy Accommodations Act of 2018, companies with 15 or more employees must make reasonable accommodations for employees with medical requirements resulting from pregnancy, childbirth, or related medical conditions, including providing breastfeeding breaks.
The South Carolina Lactation Support Act was enacted in 2020, requiring employers to offer reasonable break time and a private space up to one year after the child's birth for employees to express milk.
Leaves of absence in South Carolina
There are only a few unpaid leave laws for workers in South Carolina. Paid leave is usually not required for South Carolina employees. See below.
Family and medical leave
Per the Family and Medical Leave Act (FMLA), companies with 50 or more employees must allow eligible employees to take up to 12 weeks of unpaid leave annually in case of a severe illness, a significant life event such as the arrival or adoption of a child, or to tend to a family member who is unwell or injured.
Military leave
According to the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), employees in South Carolina have the right to leave for deployment and return to their positions afterward. To do so, the employee must inform their employer with advanced written notice of their military service, and the duration of their active military service must not exceed five years.
Jury duty leave
Employers in South Carolina aren’t obligated to provide jury duty leave, but they are prohibited from retaliating against employees who attend jury duty.
Bereavement leave
South Carolina law doesn’t require employers to provide employee bereavement leave following the death of a close relative.
Voting leave
South Carolina doesn’t have a voting leave statute.
Bone marrow donation leave
Employees in South Carolina working at businesses with 20 or more employees may qualify for paid leave for bone marrow donation. To be eligible, the employee must work an average of 20 hours per week. They can’t take more than 40 hours of leave without the employer's approval. The employer may ask for verification from a doctor to confirm the reason and duration of the leave.
Holiday leave and vacation time
Private employers don't need to offer holiday leave to their employees. Workers may be required to work on public holidays without additional compensation unless their employer has a policy stating otherwise. Regarding vacation leave, employers don't need to provide any time off, but if they do, they must follow the terms outlined in their employment contracts or company policies.
Pregnancy disability leave in South Carolina
South Carolina doesn’t have state laws regarding pregnancy disability, so it falls under the FMLA, which allows employees to take up to 12 unpaid weeks of leave without the risk of losing their jobs.
Paid sick leave in South Carolina
Employers in South Carolina aren’t required by law to offer sick leave benefits, paid or unpaid. If an employer does provide sick leave benefits, they should be outlined in an employment contract or company policy.
Employees who are too sick to work can use FMLA for unpaid leave if they meet the requirements. While FMLA covers long-term leave, no federal law mandates private employers to provide paid sick leave for short-term illnesses. In cases of illness or injury, workers' compensation and unemployment insurance can help those who must leave their jobs.
With Rippling, you can fully customize and automate your leave policy while having complete visibility into your employees' leave usage.
Workplace safety in South Carolina
There are no workplace safety laws specific to the state of South Carolina. Instead, most private employers and their workers are governed by the Occupational Safety and Health Administration (OSHA). OSHA aims to establish safe work environments by setting standards for workplace hazards, including:
- Physical hazards like noise, radiation, and extreme temperatures
- Ergonomic hazards like heavy lifting and repetitive motions
- Biological hazards like mold and pests
- Chemical and dust hazards like pesticides and asbestos
- Safety hazards like slips and falls
Every employer in South Carolina must have a written Safety, Health, and Injury & Illness Prevention Plan (IIPP) manual, plan, and program, although federal OSHA doesn’t strictly require it.
SC OSHA is located in Columbia and is part of the South Carolina Department of Labor, Licensing, and Regulation. SC OSHA has also adopted state plan standards for:
- Spray finishing using flammable, combustible, and other hazardous materials
- Respiratory protection
- Powered industrial trucks
- Excavations
- General safety and health requirements
Rippling PEO offers a pay-as-you-go workers' comp plan, allowing you to stay compliant while you focus on scaling your business in South Carolina and throughout the US.
Discrimination and harassment laws in South Carolina
South Carolina enacted the South Carolina Human Affairs Law (SCHAL), which applies to employers with 15 or more employees, overseen by the South Carolina Human Affairs Commission. This law safeguards workers from discrimination and harassment based on race, religion, color, sex (including pregnancy and related medical conditions), age, national origin (including ancestry), and disability.
Employers in South Carolina cannot retaliate against employees who speak out against unlawful employment practices or participate in related investigations or hearings under the SCHAL.
South Carolina also recognizes federal discrimination laws and equal employment opportunity laws apply under the EEOC’s coverage guidelines, including incidents relating to:
- Color
- Race
- Ethnicity
- Sex
- Gender identity
- Sexual orientation
- National origin
- Religion
- Pregnancy
- Age (40+)
- Veteran/National Guard status
- Political affiliation
- Disability
- Genetic information
Harassment in the workplace can include offensive words or actions, such as hurtful comments, physical violence, threats, unwanted sexual advances, intimidation, or displaying inappropriate images or objects that interfere with work. It is important to know that teasing, casual comments, or rare incidents don’t count as harassment unless they’re severe. Harassment can come from anyone in the workplace, and employers are responsible for their workers' behavior, even if they don't know about it.
In South Carolina, private companies aren't mandated to provide sexual harassment training, but it's still always advisable to educate your workforce. Rippling's Learning Management System includes essential courses to ensure that your employees are aware of federal and local laws regarding employment discrimination and harassment.
Unions in South Carolina
South Carolina is a right-to-work state. This means it is illegal for employers to threaten an employee's job or refuse to hire a candidate who doesn't join a union.
Employees can form a labor union to negotiate working conditions together. They can negotiate with their employer for things like better benefits, higher wages, and more vacation time—referred to as collective bargaining. According to the National Labor Relations Act (NLRA), employees have the guaranteed right to:
- Organize or become part of a union to lead wage and working conditions negotiations with their employer.
- Discuss their employment terms and conditions with co-workers.
- Improve working conditions by filing complaints with employers or government agencies and seeking union help.
- Strike or picket, depending on the grounds.
- Refuse to join a union or remain a member.
Employers can’t fire or treat workers poorly for joining or supporting a union, as stated by the NLRA. This includes offering bribes, demotions, or threats. Unions and their representatives are also not allowed to threaten employees with job loss or other negative actions if they choose not to support the union.
FAQs about South Carolina labor and employment laws
Are independent contractors covered under South Carolina employment laws?
No, independent contractors in South Carolina aren’t protected by employment laws. It’s crucial to correctly classify them, as there are no safe harbor provisions for unintentional misclassification.
Does at-will employment exist in South Carolina?
Yes, South Carolina is an at-will employment state. This means employers have the right to fire employees for any reason (or no reason at all) as long as it isn’t illegal. Employees can also leave their jobs without giving prior notice.
What privacy rights do employees have in South Carolina?
South Carolina law has no specific statutory protections for employment data or workplace-specific privacy laws.
Are background checks legal in South Carolina?
Yes, background checks are legal in South Carolina. Employers in South Carolina are free to conduct background checks on potential and current employees, with a few caveats:
- Employers can’t use expunged records for employment decisions or be sued for negligent hiring based on expunged records under S.C. Code Ann. § 17-22-960.
- In 2019, Columbia, SC passed an ordinance limiting employers’ use of criminal background checks and banning employers from inquiring about salary history on job applications.
Are whistleblowers protected in South Carolina?
Yes, South Carolina has two whistleblower laws. The first whistleblower statute covers employees who make unsafe or unhealthful work conditions complaints under the SC OSHA Act. The second one only covers public employees reporting legal violations or the misuse of public funds under South Carolina Code Title 8.
Is workers’ compensation coverage required in South Carolina?
If you run a business in South Carolina with four or more employees, it’s mandatory to have workers' compensation coverage. However, there are a few exemptions to this rule, such as agricultural employers, railway and railway express company employers, people selling agricultural products, and federal employees of the state.
Are there required healthcare benefits in South Carolina?
No, state law doesn’t require employers to provide health insurance coverage.
Are South Carolina employers required to provide bereavement leave?
South Carolina law doesn’t require employers to provide employee bereavement leave.
What employee protections are available in South Carolina if layoffs occur?
If a company is covered under the Worker Adjustment and Retraining Notification (WARN) Act, its employees are entitled to a notice of 60 days before any large-scale layoffs occur. The WARN Act typically applies to employers with 100 or more workers, excluding those who have worked for less than six months in the past year and those who work less than 20 hours per week on average.
The South Carolina Department of Employment and Workforce is responsible for administering the state's unemployment benefits program, which offers financial support to individuals who lose their jobs through no fault of their own.
Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.
