Introduction to employment laws in South Carolina
Overview
While there aren’t too many specific state laws governing employment relationships in North Carolina, many federal employment laws apply. These laws safeguard workers’ rights while providing a favorable environment for businesses to thrive.
Understanding South Carolina’s specific employment landscape and HR regulatory context is crucial for any business hiring in the state.
Employing in South Carolina: Key employment laws and practices
Standard work hours
In South Carolina, work hours are typically governed by Title 41 of the state’s Code of Law. Full-time employment is generally considered to be between 35 and 40 hours per week, although this isn’t explicitly defined by law. This standard applies nevertheless to the majority of employees working in the state.
Contract workers’ hours are, typically, as defined in their agreements with the companies they carry out work for. Self-employed professionals have broad flexibility in the hours they work. It’s important for employers to understand these distinctions and ensure they’re adhering to South Carolina’s work hour laws to prevent potential legal issues.
Minimum wage and overtime
South Carolina’s minimum wage is currently set at $7.25 per hour, mirroring the federal minimum wage. However, it’s important to note that there are special provisions for certain groups of workers. Tipped employees must be paid a minimum cash wage of $2.13 per hour with a maximum tip credit of $5.12 per hour. A youth minimum wage of $4.25 per hour also applies.
In addition to the minimum wage, South Carolina follows the FLSA’s provisions regarding overtime pay. Non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
The state’s salary threshold for overtime exemption is currently $684 per week, aligning with the federal minimum. Employers should timely adjust their payroll practices in response to any changes in these rates.
Multiplier makes it easy to manage benefits for South Carolina employees.
Insurance and benefits
In South Carolina, employers are required to provide certain insurance benefits to their employees. This includes unemployment insurance, which ranges from 0.06% to 5.46% depending on the industry and company size, as well as Federal Insurance Contributions Act (FICA) contributions for Social Security and Medicare at rates of 6.20% and 1.45% respectively. Any business in South Carolina with more than four full- or part-time employees is required to carry workers’ compensation insurance.
While there’s no state law mandating health, dental, or vision insurance, most employers offer these benefits as part of their employee compensation package.
Meal and rest periods
As an employer in South Carolina, it’s crucial to understand the state’s regulations regarding employee breaks. The state follows federal requirements under the Fair Labor Standards Act (FLSA). The FLSA doesn’t necessitate rest or meal breaks either. If employers choose to provide breaks lasting 20 minutes or less, however, they are counted as paid work hours. Meal periods of 30 minutes or more can be unpaid as long as the employee is completely relieved from duty during this time.
Fair practice and employee well-being often dictate that employers should provide adequate break periods for employees during their shifts. It is essential to consider that although there is no specific state law requiring breaks, certain industries or occupations such as drivers or healthcare workers may have industry-specific rules regarding breaks.
Anti-discrimination laws
South Carolina has strict laws in place to prevent discrimination in the workplace. The South Carolina Human Affairs Law prohibits employment discrimination based on race, color, national origin, religion, sex, age (40-70), and disability. These protections align with federal regulations under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA).
It’s worth noting that, unlike many states, South Carolina does not have explicit laws prohibiting employment discrimination on the basis of sexual orientation or gender identity.
In terms of enforcement, both federal law and South Carolina HR compliance regulations give victims of discrimination the right to file a complaint with the South Carolina Human Affairs Commission (SCHAC) or directly with the Equal Employment Opportunity Commission (EEOC). If found guilty, employers can face penalties, including reinstatement, back pay, and other forms of legal relief for the victim.
Leave policies
According to federal laws, different leave types are granted to employees in South Carolina. These include vacation leave, sick leave, maternity or parental leave, bereavement leave, jury duty leave, and military leave.
While South Carolina law does not require employers to offer paid vacation leave, many employers choose to do so as a benefit to attract and retain employees.
Sick leave in South Carolina falls under the Family and Medical Leave Act (FMLA), which grants eligible employees up to 12 weeks of unpaid leave per year for specific family and medical reasons. This includes time off for serious health conditions that render the employee unable to perform their job, the birth or adoption of a child, or to care for a spouse or child with a serious health condition.
South Carolina also adheres to the FMLA for maternity, paternity, and parental leave. This legislation allows both mothers and fathers to take up to 12 weeks of unpaid leave for the birth or adoption of a child or for foster care placement within the first year.
| Leave type | Details |
| Vacation leave | Not required by state law but often offered by employers |
| Sick leave | Up to 12 weeks under FMLA |
| Maternity/Paternity leave | Up to 12 weeks under FMLA |
| Bereavement leave | Not required by state law |
| Jury duty leave | Unpaid time off required |
| Voting leave | Not required by state law |
| Bone marrow donation leave | Required, caveats apply |
| Military leave | Varies, governed by federal regulation found in USERRA |
Easily onboard employees in South Carolina?
Termination laws
When it comes to termination of employment, South Carolina is an “at-will” employment state. This means that either the employer or the employee can terminate the employment relationship at any time, for any reason, as long as it’s not illegal or discriminatory. While no official notice period is required in most cases, common practice is to provide two weeks’ notice.
If the termination results in a mass dismissal, the employer must follow the Worker Adjustment and Retraining Notification Act (WARN), which requires employers to provide 60 days’ notice to affected employees.
There is no state law requiring severance pay unless stipulated in an employment contract or collective bargaining agreement.
Safety and health
In terms of safety and health standards in the workplace, South Carolina adheres to regulations defined by the federal Occupational Safety and Health Act (OSHA). Employers are required to maintain a safe work environment and take all reasonable precautions to prevent accidents. This includes correcting identified hazards and complying with occupational safety and health standards set by OSHA.
Employers must report any work-related illnesses or injuries to the relevant authorities as per federal regulations. Employers should also ensure that employees are aware of their rights under OSHA and inform them about potential hazards in their work environment.
Taxes in South Carolina
Employers in South Carolina have certain tax obligations that they must meet. These include both federal taxes, such as FICA Social Security and Medicare taxes, and state taxes, such as Unemployment Insurance.
Type | Rate | Details |
State income Tax | 0.0% – 6.4% | Graduated |
Unemployment insurance (state) | 0.06% – 5.46% | N/A |
FICA Social Security | 6.20% | Applied on salary up to $168,000 USD annually |
FICA Medicare | 1.45% | N/A |
FUTA (Federal Unemployment Tax Act) tax rate | 0.60% – 6.00% | Applied on salary up to $7,000 USD |
Managing South Carolina employees with an Employer of Record (EOR)
Whether you are a local business or a global one looking to expand into the state, complying with South Carolina employment laws is crucial.
Navigating these laws and maintaining HR compliance can be complex and time-consuming.
As your Employer of Record (EOR), Multiplier allows you to legally hire full-time workers in South Carolina, without needing to set up a local entity. Our Global Payroll Platform handles salary payments while managing local taxes, contributions, and withholdings. We also provide locally compliant benefits support for your international employees.
Discover firsthand how we can streamline your HR and compliance processes by booking a
FAQs
Work and overtime laws in South Carolina are governed by Title 41 of the state’s Code of Law. A full-time job is typically between 35 and 40 hours per week, though this isn’t legally defined.
Salaried employees earning less than $684 per week are entitled to 1.5x their regular pay rate for any hours worked over 40 per week as per the federal Fair Labor Standards Act.
The minimum wage for private-sector employees in South Carolina is $7.25 per hour, which is aligned with the federal minimum wage.
Employer payroll contributions range from 0.06% to 19.66%, while employee payroll contributions range from 7.65% to 8.55%. These contributions include state unemployment insurance, FICA Social Security, and Medicare.
Leave policies generally fall under the Family and Medical Leave Act (FMLA) which provides up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons. Maternity, Paternity, and Parental leave all fall under FMLA.
