South Carolina HR Compliance Guide for Employers
South Carolina HR compliance: mandatory E-Verify for all employers, treble damages for late final pay, workers' comp at 4 employees, SC OSHA state plan.
South Carolina HR Compliance
Mandatory E-Verify for all private employers, treble damages for final pay violations, workers' comp at 4 employees, SC OSHA state plan
South Carolina is one of the most employer-friendly states in the country. It has no state minimum wage, no state overtime law, no mandatory paid sick leave, no state FMLA, and strong at-will and right-to-work protections. But three state-specific requirements create serious legal exposure for employers who overlook them: mandatory E-Verify for every private employer regardless of size, treble damages for any late final paycheck, and workers' compensation required at just four employees.
For HR onboarding, the practical compliance picture is simpler than in states like California or Connecticut, but the penalties for the rules that do apply are steep. This guide covers every major South Carolina employer obligation as of 2026, organized by the stage of employment where each requirement applies. Use FirstHR to automate your South Carolina onboarding workflows.
South Carolina Compliance at a Glance
South Carolina defers to federal law on minimum wage, overtime, and most leave requirements, but operates its own systems for anti-discrimination enforcement, workplace safety, and employment eligibility verification. The threshold chart below shows which requirements apply at each employer size level.
The five state agencies South Carolina employers interact with most frequently are: SC Department of Labor, Licensing and Regulation (SC LLR) for wages, E-Verify audits, and OSHA; SC Department of Revenue (SCDOR) for income tax withholding; SC Department of Employment and Workforce (DEW) for unemployment insurance; SC Workers' Compensation Commission (WCC) for workers' comp; and SC Human Affairs Commission (SCHAC) for employment discrimination.
South Carolina Is At-Will and Right-to-Work: What That Means in Practice
South Carolina recognizes at-will employment under common law: either party can end the employment relationship at any time, for any legal reason, with or without notice. Four exceptions apply, and each creates real litigation risk if ignored.
At-will employment exceptions
The public policy exception protects employees who refuse to perform illegal acts, file workers' compensation claims under § 41-1-80, or perform jury duty under § 41-1-70. Discharging an employee for any of these activities creates tort liability. The implied contract exception arises when employee handbook language promises progressive discipline or for-cause termination without a proper disclaimer. SC Code § 41-1-110 (enacted 2004) provides a safe harbor: if the handbook contains a conspicuous disclaimer in underlined capital letters on the first page, signed by the employee, the handbook does not create an implied contract. Without this disclaimer, handbook language can override at-will status. Express contract and statutory protections (anti-discrimination, retaliation) round out the four recognized exceptions.
Right-to-work
South Carolina enacted right-to-work protections in 1954 under SC Code §§ 41-7-10 through 41-7-130. Employers cannot require union membership, dues, fees, or equivalent payments as a condition of employment. Closed shop and union shop agreements are illegal. Deduction of union dues without the employee's written consent is unlawful under § 41-7-40. Violations are a misdemeanor carrying fines of $10 to $1,000 and/or 10 to 30 days imprisonment. These rules apply to all employers regardless of size.
No State Minimum Wage, No State Overtime: Strict Pay Rules Still Apply
South Carolina has no state minimum wage and no state overtime law. Federal FLSA applies to covered employers. What South Carolina does have is the Payment of Wages Act, with penalties that exceed federal law for certain violations.
Minimum wage and overtime
SC Code § 6-1-130 prohibits local governments from setting minimum wages above the federal rate, so the federal minimum of $7.25 per hour applies uniformly across the state. Tipped employees receive a cash wage of $2.13 per hour with a tip credit of $5.12; if tips and cash wages together do not reach the full minimum, the employer must make up the difference. The youth wage of $4.25 per hour applies to employees under 20 during their first 90 days of employment. South Carolina has no state overtime law; federal FLSA standards require 1.5 times the regular rate for hours over 40 per workweek.
SC Payment of Wages Act
The Payment of Wages Act at SC Code §§ 41-10-10 through 41-10-110 imposes specific written notice and recordkeeping requirements that apply to all onboarding documents. At hire, every employer must provide a written notice disclosing normal work hours, wage rate, the time and place of payment, and any deductions. If any of these terms change, the employer must provide seven calendar days' written notice before the change takes effect. Wage increases are the only exception to the notice requirement. Each pay period, employers must provide an itemized pay statement showing gross earnings and all deductions. Payroll records must be retained for a minimum of three years.
Meal and rest breaks
South Carolina has no law requiring meal or rest breaks for adult employees. Federal FLSA rules govern: short breaks of 5 to 20 minutes, if offered, must be compensated; bona fide meal periods of 30 minutes or more where the employee is fully relieved of duties need not be paid. Employers with 15 or more employees must provide more frequent or longer breaks as a reasonable accommodation for pregnancy-related conditions under the 2018 Pregnancy Accommodations Act.
48 Hours or the Next Payday: SC's Final Pay Rule Carries Treble Damages
South Carolina's final pay rule applies to all separations, voluntary and involuntary, and the penalty for any delay is automatic and severe. Understanding the compliance onboarding in South Carolina is essential before any separation.
Under SC Code § 41-10-50, all wages due to a departing employee must be paid within 48 hours of separation or on the employee's next regular payday, whichever comes first, but in no event more than 30 days after separation. There is no distinction between discharge and resignation. The 48-hour window is one of the strictest in the Southeast.
The definition of wages under § 41-10-10 includes all compensation: time-based pay, task pay, piece work, and commissions. Critically, it also includes vacation, holiday, and sick leave payments that are due under any employer policy or contract. If a written policy or employment contract promises PTO payout at separation, that accrued PTO becomes wages and must be included in the final paycheck. South Carolina does not independently mandate PTO payout; the obligation arises only from the employer's own policy or contract language. If a policy states that PTO is forfeited at termination, no payout is generally required. Use-it-or-lose-it policies are not prohibited. However, if the policy is silent on payout, legal risk favors the employee.
South Carolina has no state WARN Act. SC Code § 41-1-40, which formerly addressed plant closings, was repealed in 2010. The federal WARN Act applies to employers with 100 or more employees, requiring 60 days' advance notice before mass layoffs or plant closings. Federal WARN notices for South Carolina are directed to the DEW Dislocated Worker Unit.
The SC Human Affairs Law Covers Employers with 15 or More Employees
South Carolina's primary anti-discrimination statute is the SC Human Affairs Law at SC Code §§ 1-13-10 through 1-13-110, enforced by the SC Human Affairs Commission (SCHAC) at schac.sc.gov.
The SC Human Affairs Law covers employers with 15 or more employees for each working day in 20 or more calendar weeks in the current or preceding year. Protected classes include: race, color, religion, sex (including pregnancy, childbirth, and lactation under the 2018 Pregnancy Accommodations Act), age (40 and older), national origin, and disability. South Carolina state law does not explicitly cover sexual orientation or gender identity as of March 2026. Federal protections under Bostock v. Clayton County (2020) extend Title VII's coverage to sexual orientation and gender identity for employers with 15 or more employees.
Employees have 180 days from a discriminatory act to file with SCHAC, extended to 300 days under SCHAC's worksharing agreement with the EEOC. SCHAC investigates complaints, attempts mediation and conciliation, and can issue Right to Sue letters after 180 days.
Employers with 15 or more employees must provide reasonable accommodations for pregnancy-related conditions, including more frequent breaks, modified duties, temporary transfer, and seating accommodations. South Carolina has no state-specific equal pay statute; the federal Equal Pay Act applies.
The SC Lactation Support Act at SC Code § 41-1-120 (2020) requires all employers to provide reasonable break time and a private space, which may not be a bathroom, for employees to express breast milk. This applies regardless of employer size.
South Carolina Mandates E-Verify for Every Private Employer
South Carolina new hire paperwork involves both federal I-9 and state-specific E-Verify, wage notice, and reporting obligations that must all be completed within different deadlines. A complete employee onboarding checklist helps ensure nothing is missed in the required 3-business-day window. It is one of only a handful of states requiring E-Verify for all private employers. This requirement applies from the first hire.
Under the SC Illegal Immigration Reform Act (SC Code §§ 41-8-10 through 41-8-140), all private employers must enroll in E-Verify at e-verify.gov and verify every new hire within 3 business days of the hire date. The verification requirement applies even if employment is terminated before the 3-day window closes. All private employers hold an implied "SC Employment License" under § 41-8-20; violations can result in suspension or permanent revocation of that license. SC LLR conducts statewide random audits.
| Violation | Consequence |
|---|---|
| 1st violation (failure to verify) | 1-year probation with quarterly reports to SC LLR |
| 2nd violation within 3 years | License suspension 10–30 days |
| Knowingly employing unauthorized worker (1st) | License suspension 10–30 days + up to $1,000 reinstatement fee |
| 2nd knowing violation | License suspension 30–60 days |
| 3rd knowing violation | License REVOKED for 5 years |
During any suspension period, the employer cannot operate, open to the public, or employ anyone. A third knowing violation results in a five-year license revocation.
Background checks
South Carolina has no statewide ban-the-box law for private employers. Employers may ask about criminal history at any stage of the hiring process, subject to the following limits: expunged records under SC Code § 17-1-40 cannot be used in hiring decisions; the Fair Credit Reporting Act governs background checks conducted by third-party consumer reporting agencies; and the city of Columbia has a local ban-the-box ordinance (Ordinance 2019-022) requiring private employers to defer criminal history inquiry until after a conditional offer. SLED provides state criminal history checks at sled.sc.gov.
Three Registrations Every SC Employer Must Complete
South Carolina payroll registration requires filings with three separate state agencies before the first payroll runs. These three registration numbers are distinct and cannot be used interchangeably.
1. SC income tax withholding (SCDOR)
Register via MyDORWAY at mydorway.dor.sc.gov for a Withholding File Number, typically issued within 24 hours for online registrations. Employees complete a South Carolina W-4, separate from the federal W-4. If an employee claims 10 or more allowances on the SC W-4, the employer must send a copy to SCDOR within 30 days. South Carolina's income tax uses three effective brackets: 0% on income up to approximately $3,460; 3% on income from $3,461 to approximately $17,330; and 6% on income above approximately $17,330. The top rate was reduced from 6.2% to 6.0% via a budget proviso effective through June 30, 2026. W-2s must be filed directly with SCDOR by January 31 each year; submitting to the Social Security Administration alone does not satisfy the South Carolina requirement. More information is at dor.sc.gov/withholding.
2. Unemployment insurance (SC DEW)
Register via the SUITS portal at uitax.dew.sc.gov for an Employer Account Number. UI liability is triggered when an employer pays $1,500 or more in wages in any calendar quarter or has at least one employee in 20 different calendar weeks. The 2026 taxable wage base is $14,000 per employee per year. The new employer rate is 1.060% (1.000% base plus 0.060% DACA surcharge). Quarterly reports are filed using Form UCE-120/101; employers with 10 or more employees must file electronically. Employers are also required to report SOC codes for each employee effective 2024.
3. Business entity registration (SC Secretary of State)
Corporations, LLCs, LPs, and LLPs must register at businessfilings.sc.gov. Out-of-state entities need a Certificate of Authority before conducting business in South Carolina. Sole proprietorships and general partnerships do not file with the Secretary of State.
Workers' Compensation Is Required Once You Hit 4 Employees
South Carolina requires new hire paperwork coverage at a lower threshold than most employers expect. The requirement kicks in at four employees, not the higher thresholds used in some other states.
SC Code § 42-1-10 et seq. requires workers' compensation coverage when an employer has four or more employees regularly employed AND an annual payroll of at least $3,000. Both conditions must be satisfied. Full-time, part-time, seasonal, and family member employees all count toward the four-employee threshold. The SC Workers' Compensation Commission administers the program at wcc.sc.gov.
Exemptions under § 42-1-360 include employers with fewer than four employees or annual payroll under $3,000, casual employees, agricultural employees, state and county fair associations, railroads, federal employees, certain owner-operator truck drivers, and commission-paid real estate agents. An exempt employer who voluntarily obtains coverage becomes subject to the Act until a Form 38 is formally filed.
| Violation Type | Penalty |
|---|---|
| Operating without coverage | $1/employee/day (min $10/day; max $100/day) per § 42-5-40 |
| Annual non-compliance penalty | Minimum $750/year; maximum $1,000/year per § 42-3-105 |
| Claims paid by Uninsured Employers' Fund | Lien on all employer assets; survives bankruptcy (§ 42-7-200) |
| Loss of defenses | Cannot assert contributory negligence, assumption of risk, or co-employee negligence (§ 42-1-510) |
| Criminal violation | Misdemeanor: fine $100–$1,000 and/or 10–90 days imprisonment (§ 42-5-160) |
Coverage must be obtained from a commercial carrier licensed in South Carolina, through the state assigned risk program administered by NCCI, through an approved self-insurance arrangement, or through a self-insurance fund. Employers must post Form 2 (Employer's Notice of Being Subject to the Act) in the workplace and file Form 12A (First Report of Injury) when an employee is injured. A qualifying drug-free workplace program entitles the employer to a 5% discount on workers' compensation premiums under § 38-73-500.
South Carolina Runs Its Own OSHA Program Through LLR
South Carolina operates an OSHA-approved State Plan, making it one of the first states to receive that designation (initial approval November 30, 1972; final approval 1987). SC OSHA is administered by SC LLR's Division of Occupational Safety and Health.
SC OSHA covers all private sector and state and local government workplaces in South Carolina. The state has adopted all federal OSHA standards identically (29 CFR 1910, 1926) plus one South Carolina-specific standard for spray finishing operations. Federal OSHA retains jurisdiction over maritime workplaces, USPS contract workers, military bases, and Section 11(c) anti-retaliation matters. The SC OSHA program is distinct from the federal agency; employers in South Carolina interact exclusively with SC OSHA for inspections, citations, and consultation.
Fatalities must be reported to SC OSHA within 8 hours by calling (803) 896-7672. In-patient hospitalizations, amputations, and loss of an eye must be reported within 24 hours. OSHA Form 300 (Log of Work-Related Injuries and Illnesses) must be maintained throughout the year. OSHA Form 300A (Annual Summary) must be posted from February 1 through April 30. Employers with 10 or fewer employees and certain low-hazard industries are exempt from routine recordkeeping but must still report fatalities and severe injuries. Note that federal electronic injury tracking (OSHA ITA) is not required for South Carolina employers under the state plan.
SC Mandates Almost No Leave: But These Protections Exist
South Carolina mandates significantly less leave than most neighboring states. There is no state FMLA, no paid sick leave requirement, no mandatory vacation or holiday pay, no bereavement leave mandate, and no domestic violence leave law for private employers.
| Leave Type | Employer Threshold | Duration | Key Rules |
|---|---|---|---|
| Jury duty (§ 41-1-70) | All employers | Duration of service | Cannot discharge or demote; damages up to 1 year's salary; no paid leave required |
| Military leave (§§ 25-1-2310 to 2350 + USERRA) | All employers | Duration of service | Unpaid; reinstatement rights; employee must apply within 5 days of release from duty |
| Bone marrow donation (§ 44-43-80) | 20+ employees | Up to 40 hours paid | Physician verification permitted; anti-retaliation protection; paid by employer |
| Lactation breaks (§ 41-1-120) | All employers | Reasonable time | Private space required (not a bathroom); reasonable break frequency |
| Federal FMLA | 50+ employees within 75 miles | 12 weeks unpaid/year | Eligible after 12 months + 1,250 hrs; serious health condition, bonding, military |
| Paid sick leave | No mandate | N/A | Employer may offer voluntarily; no state requirement |
| Bereavement leave | No mandate (public sector: 3 days) | N/A | No private employer requirement |
| Domestic violence leave | No mandate | N/A | No South Carolina law for private employers |
| Voting leave | No mandate | N/A | § 16-17-560 prohibits retaliation for political rights; no time-off requirement |
What South Carolina does require
Jury duty protection under § 41-1-70 prohibits any employer from discharging or demoting an employee for serving on a jury. Damages can reach up to one year's salary; no paid leave is required. Military leave for private sector employees combines USERRA with SC Code §§ 25-1-2310 through 2350, which extend state active duty protections. Employees must apply for reinstatement within five days of release from duty.
Bone marrow donation leave under § 44-43-80 requires employers with 20 or more employees to provide up to 40 hours of paid leave for an employee to serve as a bone marrow donor. The employer may require physician verification of the donation and the medical necessity for the leave. The lactation break requirement under § 41-1-120 applies to all employers and requires reasonable break time and a private space, which cannot be a bathroom, for employees expressing breast milk.
Federal FMLA applies to South Carolina employers with 50 or more employees within 75 miles. Eligible employees with at least 12 months of service and 1,250 hours worked may take up to 12 weeks of unpaid, job-protected leave per year.
Employers with Fewer Than 20 Workers Must Offer 6 Months of Coverage Continuation
South Carolina's mini-COBRA under SC Code § 38-71-770 fills the gap left by federal COBRA for small employers. For employers managing employee handbook, this means written continuation notices are required even at the smallest employer sizes. Federal COBRA applies only to employers with 20 or more employees with group health plans; South Carolina's continuation requirement covers employers below that threshold.
| Feature | SC Mini-COBRA | Federal COBRA |
|---|---|---|
| Employer size | Fewer than 20 employees | 20+ employees |
| Duration | Remainder of policy month + 6 additional months (approx. 6 months) | 18–36 months |
| Plan type | Fully insured group health plans only | Insured and self-funded |
| Premium | 100% of group rate (no 2% surcharge) | Up to 102% of group rate |
| Grace period | None | 30 days |
| Election period | Not specified in statute | 60 days |
The employee must have been continuously insured under the group plan for at least six consecutive months to be eligible. The employer must clearly notify the employee at termination of the right to continue coverage, the premium amount, and the employee's responsibility for payment. SC DOI enforces at doi.sc.gov.
Required Workplace Postings in South Carolina
South Carolina employers must display both state and federal required workplace posters. The full list and free downloads are at llr.sc.gov/wage/posters.aspx.
| Poster | Who Must Post | Source |
|---|---|---|
| LLR Workplace Poster (combines SC OSHA notice, Payment of Wages/Child Labor abstract, Right-to-Work) | All employers | llr.sc.gov/wage/posters.aspx |
| Workers' Compensation Compliance Poster (Form R67-301 A, with insurer info) | 4+ employees (WC-covered) | wcc.sc.gov/coverage-division/compliance-poster |
| SC Human Affairs Commission Equal Opportunity Poster | 15+ employees | schac.sc.gov |
| Unemployment Insurance Posters (UCI 104 and UCI 105) | All UI-covered employers | dew.sc.gov |
| FLSA Federal Minimum Wage Poster (WH-1088) | All FLSA-covered employers | dol.gov/whd/posters |
| EEOC Know Your Rights Poster | 15+ employees | eeoc.gov |
| Federal FMLA Poster | 50+ employees | dol.gov/whd/posters |
| OSHA Job Safety and Health Poster | All employers | osha.gov |
| USERRA Poster | All employers | dol.gov/whd/posters |
| Employee Polygraph Protection Act Poster | Most private employers | dol.gov/whd/posters |
Drug Testing, Smoking, and Firearms in the Workplace
South Carolina gives employers broad flexibility on drug testing with few restrictions and a financial incentive to formalize a drug-free workplace program.
Drug testing
South Carolina is an open state for employer drug testing. Pre-employment, random, post-accident, reasonable suspicion, and return-to-duty testing are all permitted without regulatory approval. Employers must distribute a written substance abuse policy to employees before testing. Test results are confidential under § 41-1-15 and require written consent for release; results cannot be used in criminal proceedings against the employee. Employers with state contracts of $50,000 or more must certify a drug-free workplace under SC Code § 44-107-10 et seq. A qualifying drug-free workplace program earns a 5% workers' compensation premium discount under § 38-73-500. One important limit: employers cannot test for nicotine or tobacco, and cannot take adverse personnel action based on an employee's off-duty tobacco use under § 41-1-85.
Clean Indoor Air Act
SC Code § 44-95-10 et seq. prohibits smoking in specified public indoor areas including schools, childcare facilities, healthcare facilities, government buildings, elevators, and public transit. The law does not impose a blanket ban on smoking in all private workplaces. Local governments may enact stricter ordinances. Violation is a misdemeanor with fines of $10 to $25.
Firearms
Employers retain the right to ban concealed weapons on business premises and in employer-owned vehicles under § 23-31-220. Employers who prohibit concealed weapons must post compliant signage: "NO CONCEALABLE WEAPONS ALLOWED" in 1-inch uppercase letters with an 8-by-12-inch black silhouette handgun in a circle with a diagonal line under § 23-31-235. South Carolina does not have a parking lot law requiring employers to allow employees to keep firearms in locked vehicles. The 2024 Constitutional Carry Act preserved employer prohibition rights.
Data Breach Notification and Record Retention Requirements
South Carolina's data protection rules include a breach notification obligation, SSN handling restrictions, and specific record retention periods that differ by record type.
Data breach notification
Under SC Code § 39-1-90, any business in South Carolina that owns or licenses computerized personally identifiable information must notify affected South Carolina residents of a breach in the most expedient time possible and without unreasonable delay. PII is defined as a resident's name combined with SSN, driver's license number, or financial account number. If 1,000 or more South Carolina residents are affected, the employer must also notify the SC Department of Consumer Affairs and all nationwide consumer reporting agencies. The penalty is $1,000 per willful violation per affected resident.
SSN protections
SC Code § 37-20-180 prohibits publicly displaying a Social Security number containing six or more digits, printing SSNs on access cards or identification badges, requiring unencrypted internet transmission of SSNs, or printing SSNs on mailed materials (with limited exceptions).
| Record Type | Minimum Retention | Authority |
|---|---|---|
| Payroll records | 3 years | SC Code § 41-10-30(B) |
| UI tax records | 5 years | SC DEW regulations |
| Form I-9 | 3 years from hire or 1 year from termination, whichever is later | 8 CFR § 274a.2 |
| Employment tax records | 4 years after tax due or paid | IRS |
| SC income tax withholding records | 5 years | SCDOR |
| Workers' comp records | 4 years from injury or last payment | SC WCC |
| OSHA medical and exposure records | Duration of employment + 30 years | 29 CFR 1910.1020 |
| Personnel files (recommended) | Employment + 3 years | Federal EEO guidance |
SC Uses the Right-to-Control Test, Not the ABC Test
South Carolina applies a common-law right-to-control test for worker classification, not the stricter ABC test used in states like California and Connecticut.
The four-factor test derives from Wilkinson ex rel. Wilkinson v. Palmetto State Transportation Co. and considers: direct evidence of the right to control; who furnishes equipment and tools; method of payment (hourly versus project-based); and the right to discharge. The test applies for workers' compensation, unemployment insurance, and tax purposes. Workers are presumed to be employees until the employer proves otherwise. Misclassification penalties include up to three times the unpaid wages under the Payment of Wages Act, back-assessed workers' compensation coverage plus daily fines, back UI contributions with interest and penalties, and back payroll taxes from both IRS and SCDOR.
Non-Compete Agreements Are Enforceable but Strictly Construed
South Carolina has no statute governing non-compete agreements; enforceability is determined entirely by common law. Courts apply a five-factor test and strictly construe ambiguities against the employer.
A non-compete covenant is enforceable only if it is necessary to protect a legitimate business interest such as trade secrets or customer relationships; reasonably limited in duration; reasonably limited in geographic scope to the area where the employee actually worked; not unduly harsh in preventing the employee from earning a living; and not contrary to public policy. For new hires, the offer of employment is sufficient consideration. For existing employees, continued employment alone is not sufficient; the employer must provide new consideration such as a raise, bonus, or promotion. South Carolina courts are reluctant to blue-pencil overbroad restrictions; an overbroad covenant may be struck entirely rather than narrowed. Statewide restrictions are generally unenforceable if the employee worked only in a few counties.
SC Child Labor Rules Align Closely with Federal Standards
South Carolina's child labor rules at SC Code §§ 41-13-5 through 41-13-60 closely follow federal standards. South Carolina does not require work permits for minor employees.
| Age Group | South Carolina Rules |
|---|---|
| Under 14 | No employment (exceptions: acting, farm work ages 12–13 with parental consent during non-school hours, parent-owned business, newspaper delivery) |
| 14–15 | Max 3 hrs/school day, 8 hrs/non-school day, 18 hrs/school week, 40 hrs/non-school week. Hours: 7 AM–7 PM (9 PM June 1–Labor Day). No school-hour work. No hazardous occupations. |
| 16–17 | No hour restrictions. Cannot work during school hours. No hazardous work (17 federal hazardous occupation orders). No work permits required. |
| 18+ | No restrictions under SC child labor law. |
Penalties for child labor violations begin with a written warning or fine up to $1,000 for a first offense under § 41-13-25. More information is at llr.sc.gov/wage/cll.aspx.
South Carolina vs. Federal Law vs. Neighboring States
South Carolina sits among the most employer-friendly states in the Southeast. The comparison below shows where federal law and neighboring states differ from South Carolina's requirements.
| Parameter | South Carolina | Federal | Neighboring States |
|---|---|---|---|
| Minimum wage | No state law; federal $7.25/hr | $7.25/hr | $7.25/hr (NC, GA also defer to federal) |
| E-Verify mandate | ALL private employers (mandatory) | Federal contractors only | Select states (varies) |
| Workers' comp threshold | 4+ employees | N/A (state programs) | 3+ (NC); 1+ (GA) |
| Anti-discrimination threshold | 15+ employees (SC HAL) | 15+ (Title VII) | Varies (NC: 15+; GA: no state law) |
| Final pay deadline (discharge) | 48 hrs or next payday (max 30 days) | No federal deadline | Varies by state |
| Final pay penalty | 3x damages + attorney fees | N/A | Varies (NC: no treble damages) |
| State OSHA plan | Yes: SC OSHA (full plan, all sectors) | Federal OSHA | NC: State plan; GA: Federal OSHA |
| Paid sick leave | None required | None required | None (SE states generally) |
| State FMLA | None (federal FMLA at 50+) | 50+ employees | None (NC, GA) |
| Right-to-work | Yes (since 1954) | States' choice (NLRA § 14(b)) | Yes (NC, GA, most SE states) |
| State income tax (top rate) | 6.0% (through June 30, 2026) | N/A | 4.75% (NC); 5.75% (GA) |
South Carolina's mandatory E-Verify requirement for all private employers is the sharpest distinction from most neighboring states and from federal law. North Carolina and Georgia both have E-Verify requirements for some employers but not the blanket private employer mandate that South Carolina imposes.
Frequently Asked Questions
Does South Carolina require E-Verify for all private employers?
Yes. South Carolina mandates E-Verify for every private employer under SC Code § 41-8-10. Every new hire must be verified within 3 business days of hire. SC LLR conducts random statewide audits. Penalties escalate from probation to license revocation for repeat violations. Enroll at e-verify.gov before your first hire.
When is the final paycheck due in South Carolina?
For any separation, all wages are due within 48 hours or on the next regular payday, whichever comes first, but not more than 30 days. Any delay triggers mandatory treble damages plus attorney fees under § 41-10-80. Accrued PTO must be included if your written policy or contract promises payout.
How many employees trigger workers' compensation in South Carolina?
Four or more employees regularly employed, combined with an annual payroll of at least $3,000. Both conditions must be met. All employee types count: full-time, part-time, seasonal, and family members. Penalties for non-compliance include daily fines, personal liability for claims, and misdemeanor charges.
Does South Carolina have its own OSHA program?
Yes. SC OSHA through SC LLR is a full state plan covering all private sector and public sector workplaces. Federal OSHA covers only maritime, federal facilities, and Section 11(c) matters. Fatalities must be reported within 8 hours; hospitalizations, amputations, and eye loss within 24 hours.
Does South Carolina have a ban-the-box law for private employers?
No statewide law as of March 2026. Columbia has a local ordinance (Ordinance 2019-022) for private employers deferring criminal history inquiry until after a conditional offer. Expunged records under § 17-1-40 cannot be used in hiring decisions statewide.
What does the SC Payment of Wages Act require?
Written wage notice at hire disclosing hours, rate, pay schedule, and deductions. Seven calendar days' written notice before any change to these terms. Itemized pay stubs every pay period. Payroll record retention for 3 years. Violations trigger treble damages plus attorney fees.
What is South Carolina's income tax rate?
Three effective brackets: 0% on income up to approximately $3,460; 3% on $3,461 to approximately $17,330; 6% above $17,330. The top rate was reduced from 6.2% to 6.0% through June 30, 2026. Employers withhold using the SC W-4 and file via MyDORWAY. W-2s must be submitted directly to SCDOR by January 31.