Overtime Laws in South Carolina 2026: Pay Rates, Exemptions & Tax Deduction (2026)
⚠️Informational only — not legal or tax advice.
Guide for South Carolina overtime laws 2026
Last verified: March 2, 2026
Next scheduled review: June 2, 2026
Table of Contents
- South Carolina Overtime Laws at a Glance (2026)
- Does South Carolina Have Its Own Overtime Law?
- How Overtime Pay Is Calculated in South Carolina
- Who Is Exempt from Overtime in South Carolina?
- Federal Overtime Tax Deduction (2025–2028)
- Can an Employer Require Overtime in South Carolina?
- Industry-Specific Overtime Rules in South Carolina
- How to File an Overtime Wage Complaint in South Carolina
- Penalties for Overtime Violations in South Carolina
- Recent Changes and 2026 Updates
- Frequently Asked Questions
- Sources and Verification
South Carolina Overtime Laws at a Glance (2026)
| South Carolina Overtime Laws — Key Details (2026) | |
|---|---|
| Details | |
| Overtime threshold | 40 hours per workweek |
| Overtime pay rate | 1.5× regular rate of pay |
| Double time | No — not required under federal or South Carolina law |
| 7th consecutive day rule | No |
| State minimum wage (2026) | $7.25/hour (federal rate — South Carolina has no separate state minimum wage) |
| Exempt salary threshold (2026) | Federal: $684/week ($35,568/year) |
| Daily overtime | No — weekly calculation only |
| State enforcement agency | SC Department of Labor, Licensing and Regulation — Office of Wages and Child Labor |
| Federal enforcement | U.S. DOL Wage and Hour Division |
| Overtime tax deduction (federal) | Up to $12,500/year (2025–2028) — FLSA-covered workers |
| Statute of limitations | 3 years (SC Payment of Wages Act) / 2 years FLSA (3 if willful) |
Governing law: Fair Labor Standards Act, 29 U.S.C. § 207; S.C. Code Ann. §§ 41-10-10 to 41-10-110 (Payment of Wages Act) Last verified: March 2, 2026
Does South Carolina Have Its Own Overtime Law?
South Carolina does not have a separate state overtime statute. Overtime in South Carolina is governed entirely by the federal Fair Labor Standards Act (FLSA).
Under the FLSA, nonexempt employees must receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek.
South Carolina does have a related wage statute — the Payment of Wages Act, S.C. Code Ann. §§ 41-10-10 to 41-10-110 — but this law governs the manner in which wages (including overtime owed under the FLSA) must be paid, recorded, and disclosed. It does not establish an independent overtime entitlement or threshold.
What the SC Payment of Wages Act covers:
- Requires employers of five or more employees to notify each employee in writing at the time of hiring of the wages agreed upon, the time and place of payment, and deductions that will be made
- Requires employers to maintain records for three years
- Requires an itemized statement of gross wages and deductions with each paycheck
- Establishes civil remedies for unpaid wages (see Section 8)
What the SC Payment of Wages Act does NOT cover:
- It does not set a minimum wage
- It does not establish an overtime rate or overtime threshold
- Enforcement of overtime pay rights requires a complaint under the FLSA
Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 U.S. DOL Overtime Page: https://www.dol.gov/agencies/whd/overtime SC Payment of Wages Act: https://www.scstatehouse.gov/code/t41c010.php
Note on pending legislation: The South Carolina General Assembly is considering S.C. H. 4751 (introduced January 13, 2026), which would add § 41-10-65 to require overtime pay for eligible employees who work more than eight hours in a single workday. As of March 2026, this bill is in the House Committee on Labor, Commerce and Industry and has not been enacted. South Carolina overtime law currently follows federal FLSA rules only. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/4751.htm
How Overtime Pay Is Calculated in South Carolina
What Is a “Workweek”?
Under the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). A workweek does not have to start on Monday or align with a calendar week — the employer may designate any day and time as the start of the workweek.
Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours in one week and 30 the next, overtime is owed for the first week regardless of the second.
Source: 29 C.F.R. § 778.104–778.105
Pay Rates
Under the FLSA, nonexempt employees in South Carolina earn overtime at the following rate:
Time-and-a-half (1.5× regular rate):
- All hours worked over 40 in a workweek
South Carolina does not require daily overtime. Working more than 8 hours in a single day does not trigger overtime unless total weekly hours exceed 40.
South Carolina does not require double time at any threshold.
What Counts as the “Regular Rate of Pay”
The regular rate is not always the same as the hourly wage. Under the FLSA (29 C.F.R. § 778.108), the regular rate includes:
- Base hourly rate or salary equivalent
- Non-discretionary bonuses and incentive pay
- Shift differentials
- Commissions
- Piece-rate earnings
The regular rate does NOT include:
- Discretionary bonuses (e.g., holiday gifts)
- Employer contributions to benefit plans
- Vacation, holiday, or sick pay when no work is performed
Calculation Example
South Carolina applies the federal minimum wage of $7.25/hour (South Carolina has no separate state minimum wage as of March 2026).
Example — Weekly overtime in South Carolina:
An employee earns $7.25/hour and works 48 hours in one workweek:
- Regular pay: 40 hours × $7.25 = $290.00
- Overtime pay: 8 hours × ($7.25 × 1.5) = 8 × $10.875 = $87.00
- Total weekly gross pay: $377.00
Example — Higher wage earner:
An employee earns $18.00/hour and works 45 hours in one workweek:
- Regular pay: 40 hours × $18.00 = $720.00
- Overtime pay: 5 hours × ($18.00 × 1.5) = 5 × $27.00 = $135.00
- Total weekly gross pay: $855.00
Source: Fair Labor Standards Act, 29 U.S.C. § 207; 29 C.F.R. § 778.108–778.122
For the current federal minimum wage rate applicable in South Carolina, see the [South Carolina Minimum Wage page].
Who Is Exempt from Overtime in South Carolina?
Not all employees in South Carolina are entitled to overtime pay. Certain employees are classified as “exempt” under federal law.
Federal FLSA Exemption Requirements
To be exempt from overtime under the FLSA, an employee must meet ALL THREE criteria:
1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)
2. Salary level test: Earn at least $684 per week ($35,568 per year)
3. Duties test: Perform specific job duties in one of these categories:
| South Carolina Overtime Exemptions (EAP Categories) | |
|---|---|
| Exemption | Key duty requirement |
| Executive | Manages enterprise or department; directs 2+ employees; authority to hire/fire |
| Administrative | Office/non-manual work related to management or business operations; exercises independent judgment |
| Professional | Work requiring advanced knowledge in science or learning (prolonged specialized study) |
| Computer employee | Systems analysis, programming, software engineering — $684/week salary OR $27.63/hour |
| Outside sales | Primary duty is making sales away from employer's place of business |
Source: 29 C.F.R. Part 541
What Happened to the 2024 DOL Salary Threshold Increase?
In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.
On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).
The salary threshold remains $684/week ($35,568/year) as of 2026. South Carolina does not set a higher threshold.
South Carolina Exempt Salary Threshold vs. Federal
South Carolina does not set its own exempt salary threshold. The federal threshold of $684/week ($35,568/year) applies. This is the minimum threshold among all states.
For comparison, several states have set higher thresholds than the federal standard:
| Exempt Salary Threshold Comparison (2026) | ||
|---|---|---|
| State | Weekly threshold (2026) | Annual equivalent |
| Washington | $1,541.70 | $80,168 |
| California | $1,352.00 | $70,304 |
| New York (NYC) | $1,199.10 | $62,353 |
| Colorado | $1,123.08 | $58,400 |
| Maine | ~$796.17 | ~$41,401 |
| South Carolina / Federal | $684.00 | $35,568 |
Source: Respective state DOL websites; 29 C.F.R. § 541
Federal Overtime Tax Deduction (2025–2028)
The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.
This deduction is available for tax years 2025 through 2028.
Who Is Eligible
- Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
- Must have a Social Security number valid for employment
- Cannot use the Married Filing Separately filing status
Who is NOT eligible:
- Exempt (salaried) employees who do not receive FLSA overtime
- Independent contractors (1099 workers) who are not FLSA-covered
- Employees receiving overtime only under employer policy or collective bargaining (if that overtime is not also required by the FLSA)
What Is Deductible
The deduction covers the premium portion of overtime pay — specifically the amount that exceeds the regular rate of pay.
| Overtime Deduction Example (Federal Rule — $18/hr Regular Rate) | ||
|---|---|---|
| Overtime type | What is deductible | Example ($18/hr regular rate) |
| Time-and-a-half (1.5×) | The "half" — 1/3 of total OT pay | $9/hr per OT hour ($27 − $18) |
| Double time (2×) | The "full extra" — 1/2 of total OT pay | $18/hr per OT hour ($36 − $18) |
IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)
| Deduction Limits (Federal Overtime Deduction 2025–2028) | ||
|---|---|---|
| Filing status | Maximum annual deduction | Phase-out begins |
| Single | $12,500 | $150,000 MAGI |
| Married filing jointly | $25,000 | $300,000 MAGI |
| W-2 Reporting | |
|---|---|
| Tax year | Employer reporting requirement |
| 2025 | NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement |
| 2026 and later | REQUIRED to separately report qualified overtime compensation. The IRS has published a draft W-2 form indicating Box 12, Code TT for this purpose (draft form, subject to change before finalization) |
If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay (for time-and-a-half workers), payroll records or pay stubs showing overtime hours and rates, or employer statements.
What This Deduction Does NOT Do
- Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
- Does NOT apply to state income taxes (federal deduction only)
- Does NOT change how much overtime pay an employee receives — it reduces taxable income when filing
- Does NOT apply to overtime paid solely under employer policy that exceeds FLSA requirements
Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202 Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
South Carolina Income Tax and Overtime
The federal overtime deduction applies to federal income tax only. South Carolina imposes a state income tax, and overtime pay remains subject to South Carolina income tax at normal rates unless the General Assembly enacts a state-level exemption.
Pending South Carolina overtime tax legislation:
As of March 2026, at least two bills have been introduced in the South Carolina General Assembly that would create a state income tax exemption for overtime pay:
- S.C. H. 3793 (introduced January 28, 2025) — Would add § 12-6-1230 to exempt all overtime income from South Carolina state income tax. Status: Referred to Ways and Means Committee. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3793.htm
- S.C. H. 3298 (introduced January 14, 2025) — Would add § 12-6-1230 to exempt overtime income from South Carolina state income tax and prohibit withholding on overtime income. Status: Referred to Ways and Means Committee. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3298.htm
- S.C. H. 3368 (introduced January 2025) — Would amend § 12-6-1120 to exclude from South Carolina gross income any overtime pay received pursuant to the FLSA. Status: Referred to Ways and Means Committee. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3368.htm
None of these bills had been enacted as of March 2026. Until legislation passes, overtime pay in South Carolina remains fully subject to state income tax.
For South Carolina income tax rates and brackets, see the [South Carolina Income Tax page].
Can an Employer Require Overtime in South Carolina?
Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours.
An employer may discipline or terminate an employee for refusing to work overtime, unless a specific law, employment contract, or collective bargaining agreement provides otherwise.
South Carolina does not have additional mandatory overtime restrictions beyond the FLSA. South Carolina is an at-will employment state. Employers may require overtime, and employees who refuse may face disciplinary action, including termination.
Protections That Always Apply
Regardless of mandatory overtime policies, the following protections apply in South Carolina:
- All overtime hours must be compensated at 1.5× the regular rate of pay under the FLSA
- Employers cannot retaliate against employees who file wage complaints (29 U.S.C. § 215(a)(3); S.C. Code Ann. § 41-10-80)
- Disability accommodation requests under the ADA may limit overtime requirements
- Child labor laws restrict hours for employees under 18
- Employment contracts or collective bargaining agreements may impose limits beyond what state and federal law require
Source: 29 U.S.C. § 207; S.C. Code Ann. §§ 41-10-10 to 41-10-110
Industry-Specific Overtime Rules in South Carolina
Because South Carolina follows the FLSA exclusively for overtime, the special federal industry rules apply directly. Only industries with genuinely different rules are listed here.
Healthcare (8-and-80 System)
Under 29 U.S.C. § 207(j), hospitals and residential care facilities may use a 14-day work period instead of the standard 7-day workweek. Under this arrangement, overtime is due after 8 hours per day OR 80 hours in the 14-day period, whichever calculation results in more overtime pay. This arrangement must be established by a prior agreement between the employer and employee before work begins.
Source: 29 U.S.C. § 207(j); https://www.dol.gov/agencies/whd/overtime
Agriculture
Under the FLSA, most agricultural workers are exempt from overtime pay (29 U.S.C. § 213(b)(12)). This exemption applies to workers employed in agriculture on a farm that did not use more than 500 man-days of agricultural labor in any calendar quarter of the preceding year. South Carolina has not enacted any state-level agricultural overtime protections beyond the FLSA.
Source: 29 U.S.C. § 213(b)(12); https://www.dol.gov/agencies/whd/agriculture
Retail and Commission Employees
Under 29 U.S.C. § 207(i), retail or service employees paid more than half their earnings in commissions may be exempt from overtime if their regular rate of pay exceeds 1.5 times the federal minimum wage ($10.875/hour based on $7.25 federal minimum). This partial exemption requires that the employee be employed by a retail or service establishment.
Source: 29 U.S.C. § 207(i)
Public Sector / Government Employees
Under 29 U.S.C. § 207(o), South Carolina state and local government employers may offer compensatory time off at 1.5 hours per overtime hour instead of overtime pay, up to 240 hours for most workers (480 hours for public safety, emergency response, and seasonal employees).
South Carolina state agency employees are specifically addressed by S.C. Code Regs. § 19-707.02, which incorporates FLSA requirements and provides that nonexempt state employees shall receive either overtime pay or compensatory time for hours worked over 40 in a workweek. Each state agency must develop an overtime policy that complies with federal and state law, subject to review by the SC Office of Human Resources.
Source: 29 U.S.C. § 207(o); S.C. Code Regs. § 19-707.02; https://www.admin.sc.gov/
Compensatory Time (“Comp Time”) Rules
Under the FLSA, private-sector employers in South Carolina cannot offer comp time in lieu of overtime pay. An employee who works overtime must be compensated at 1.5× their regular rate in wages, not in time off.
Public-sector employers (state and local government) may offer compensatory time off instead of overtime pay under 29 U.S.C. § 207(o), provided:
- The comp time accrues at 1.5 hours for each overtime hour worked
- A prior agreement exists between the employer and employee (or union)
- The cap is 240 hours of accrued comp time (or 480 hours for public safety, emergency response, and seasonal employees)
- Employees must be permitted to use accrued comp time within a reasonable period
For South Carolina state employees specifically, S.C. Code Regs. § 19-707.02 confirms these limits and provides that upon separation from employment, nonexempt employees shall be paid for unused compensatory time.
Source: 29 U.S.C. § 207(o); S.C. Code Regs. § 19-707.02
Transportation (Motor Carrier Exemption)
Employees whose duties affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (29 U.S.C. § 213(b)(1); 49 U.S.C. § 31502). This exemption applies to drivers, loaders, and mechanics who handle vehicles traveling in interstate commerce. The small vehicle exception provides overtime protections for drivers of vehicles weighing 10,000 lbs. or less under the Technical Corrections Act of 2008.
Source: 29 U.S.C. § 213(b)(1); https://www.dol.gov/agencies/whd/fact-sheets/19-flsa-motor-carrier-exemption
How to File an Overtime Wage Complaint in South Carolina
Employees in South Carolina who believe they have not received proper overtime pay have three options:
Option 1: South Carolina Department of Labor, Licensing and Regulation — Office of Wages and Child Labor
The SC LLR enforces the Payment of Wages Act (S.C. Code Ann. §§ 41-10-10 to 41-10-110). While the Payment of Wages Act does not create an independent overtime entitlement, it does provide remedies when an employer fails to pay wages owed (including overtime owed under the FLSA) according to the terms of employment.
| South Carolina Wage Claim — Filing Details | |
|---|---|
| Details | |
| Agency | SC Department of Labor, Licensing and Regulation — Office of Wages and Child Labor |
| Online filing | https://llr.sc.gov/wage/faq.aspx |
| Phone | (803) 896-7756 |
| Fax | (803) 896-7680 |
| Wages and Child Labor, P.O. Box 11329, Columbia, SC 29211-1329 | |
| Physical address | 110 Centerview Drive, Synergy Business Park, Kingstree Building, Columbia, SC 29210 |
| Deadline | 3 years from the date wages become due (S.C. Code Ann. § 41-10-80) |
Source: https://llr.sc.gov/wage/paymentofwages.aspx
Option 2: U.S. Department of Labor — Wage and Hour Division
For overtime claims directly under the FLSA, employees should file with the U.S. DOL Wage and Hour Division.
| Federal Wage & Hour Division (FLSA) — South Carolina Contact | |
|---|---|
| Details | |
| Online | https://www.dol.gov/agencies/whd/contact/complaints |
| Phone | 1-866-487-9243 (toll-free) |
| Columbia District Office | Federal Building, Room 1072, 1835 Assembly Street, Columbia, SC 29201 |
| Columbia Office Phone | (803) 765-5981 |
| Deadline | 2 years from violation (3 years if willful) |
Source: https://www.dol.gov/agencies/whd/contact/complaints
Option 3: Private Lawsuit
Employees may file a lawsuit against their employer in state or federal court. Two statutes provide remedies:
Under the FLSA (29 U.S.C. § 216(b)):
- Back wages owed
- Liquidated damages (an additional amount equal to the unpaid wages)
- Reasonable attorney’s fees and court costs
- Deadline: 2 years (3 years if willful)
Under the SC Payment of Wages Act (S.C. Code Ann. § 41-10-80):
- Three times the full amount of unpaid wages (treble damages)
- Court costs and reasonable attorney’s fees
- Deadline: 3 years from when wages become due
Retaliation Protection
Under the FLSA (29 U.S.C. § 215(a)(3)) and the SC Payment of Wages Act (S.C. Code Ann. § 41-10-80), employers cannot retaliate against employees for:
- Filing an overtime wage complaint
- Participating in an investigation
- Testifying in proceedings related to overtime violations
Source: S.C. Code Ann. §§ 41-10-10 to 41-10-110 (https://www.scstatehouse.gov/code/t41c010.php); 29 U.S.C. § 216(b); 29 U.S.C. § 215(a)(3)
Penalties for Overtime Violations in South Carolina
| Federal FLSA Penalties | |
|---|---|
| Penalty type | Amount |
| Back wages | Full amount of unpaid overtime owed |
| Liquidated damages | Equal to unpaid wages (effectively doubles recovery) |
| Civil monetary penalty | Up to $2,451 per violation (willful/repeated — adjusted annually) |
| Criminal prosecution | Willful: fines up to $10,000; second offense: up to 6 months imprisonment |
Source: 29 U.S.C. § 216; https://www.dol.gov/agencies/whd/overtime
South Carolina Payment of Wages Act Penalties
South Carolina’s Payment of Wages Act (S.C. Code Ann. § 41-10-80) provides the following enforcement mechanisms when wages (including overtime owed under FLSA terms of employment) go unpaid:
| South Carolina Wage Payment Penalties | |
|---|---|
| Penalty type | Amount |
| Civil penalty (notification violations) | Warning for first offense; up to $100 per subsequent offense (S.C. Code Ann. § 41-10-30 violations) |
| Civil penalty (payment violations) | Up to $100 per violation; each failure to pay constitutes a separate offense |
| Private civil action | Three times the full amount of unpaid wages, plus court costs and reasonable attorney's fees |
| Statute of limitations | 3 years from the date wages become due |
The treble damages provision under the SC Payment of Wages Act ($3 for every $1 of unpaid wages) can result in substantially higher recovery than the FLSA’s liquidated damages provision ($1 for every $1 of unpaid wages), making state court an important option for South Carolina employees.
Source: S.C. Code Ann. § 41-10-80 — https://www.scstatehouse.gov/code/t41c010.php
Recent Changes and 2026 Updates
Federal Changes Affecting South Carolina
- July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created federal overtime tax deduction for tax years 2025–2028 under IRC § 225
- November 15, 2024: DOL salary threshold rule vacated by federal court (Texas v. U.S. Dep’t of Labor, No. 4:24-cv-00499) — exempt threshold remains $684/week ($35,568/year)
South Carolina Legislative Activity (2025–2026)
Overtime pay structure — pending:
- S.C. H. 4751 (introduced January 13, 2026): Would require overtime pay for employees working more than 8 hours in a workday, adding a daily overtime trigger on top of the existing FLSA weekly threshold. As of March 2026, referred to House Committee on Labor, Commerce and Industry; has not been enacted. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/4751.htm
Overtime state income tax exemption — pending:
- S.C. H. 3793 (introduced January 28, 2025): Would exempt all overtime income from South Carolina state income tax under new § 12-6-1230. Referred to Ways and Means Committee. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3793.htm
- S.C. H. 3298 (introduced January 14, 2025): Would exempt overtime income from state income tax and prohibit state withholding on overtime wages. Referred to Ways and Means Committee. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3298.htm
- S.C. H. 3368 (introduced January 2025): Would exclude FLSA overtime pay from South Carolina gross income under § 12-6-1120. Referred to Ways and Means Committee. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3368.htm
Minimum wage — pending:
- South Carolina has no enacted state minimum wage. The federal minimum of $7.25/hour applies. Multiple bills to establish a state minimum wage have been introduced in recent sessions (e.g., S.C. H. 3226 proposing $8.75/hour effective January 1, 2026) but none have been enacted as of March 2026. Source: https://www.scstatehouse.gov/sess126_2025-2026/bills/3226.htm
Last reviewed: March 2, 2026 Next scheduled review: June 2, 2026
Frequently Asked Questions About Overtime in South Carolina
Does South Carolina have overtime laws?
South Carolina does not have a separate state overtime statute. Overtime in South Carolina is governed by the federal Fair Labor Standards Act (FLSA). Under the FLSA, nonexempt employees must receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek.
What is the overtime rate in South Carolina in 2026?
The overtime rate in South Carolina is 1.5 times the employee’s regular rate of pay for all hours over 40 in a workweek. Based on the federal minimum wage of $7.25/hour, the minimum overtime rate is $10.875/hour. South Carolina does not require double time at any threshold.
Does South Carolina require daily overtime?
No. Overtime in South Carolina is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime unless total weekly hours exceed 40. A bill (H. 4751) introduced in January 2026 would create a daily overtime trigger after 8 hours, but it has not been enacted.
Is mandatory overtime legal in South Carolina?
Yes. Under federal law, employers can generally require adult employees to work overtime. South Carolina has no state-level restrictions on mandatory overtime beyond the FLSA. South Carolina is an at-will employment state, and employees who refuse required overtime may face disciplinary action, including termination.
Am I exempt from overtime in South Carolina?
Exemption depends on both salary level and job duties. Under the FLSA, employees must earn at least $684/week on a salary basis AND perform executive, administrative, or professional duties. South Carolina does not set a higher salary threshold — the federal $684/week standard applies.
Can salaried employees get overtime in South Carolina?
Yes. Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week, or who do not meet the required duties tests under 29 C.F.R. Part 541, are nonexempt and entitled to FLSA overtime pay.
Is overtime taxed in South Carolina?
Overtime pay is subject to both federal and South Carolina state income taxes. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 (single) or $25,000 (married filing jointly) of the premium portion of overtime from federal taxable income. This federal deduction does not apply to South Carolina state income tax unless the General Assembly enacts a state-level exemption, which as of March 2026 has not occurred.
How do I calculate the overtime tax deduction?
For time-and-a-half pay, the deductible amount is one-third of total overtime pay received. For example, if an employee earned $6,000 in total overtime pay at time-and-a-half, the qualified overtime compensation (the deductible amount) is $2,000. The IRS confirms this method in Notice 2025-69. Source: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
How do I file an overtime complaint in South Carolina?
Employees may file a wage claim with the SC Department of Labor, Licensing and Regulation, Office of Wages and Child Labor, online at https://llr.sc.gov/wage/faq.aspx or by calling (803) 896-7756. Alternatively, file directly with the U.S. DOL Wage and Hour Division (1-866-487-9243 or https://www.dol.gov/agencies/whd/contact/complaints). The FLSA deadline is 2 years (3 years for willful violations); the SC Payment of Wages Act deadline is 3 years.
Can my employer fire me for refusing overtime in South Carolina?
In most cases, yes. South Carolina is an at-will employment state, and employers may discipline or terminate employees who refuse overtime, unless a contract, collective bargaining agreement, or applicable law provides otherwise. Employers cannot, however, retaliate against an employee for filing an overtime complaint under the FLSA (29 U.S.C. § 215(a)(3)) or under the SC Payment of Wages Act (S.C. Code Ann. § 41-10-80).
Can my employer give comp time instead of overtime pay?
Under the FLSA, private-sector employers in South Carolina cannot offer comp time in lieu of overtime pay. Employees who work overtime must receive cash wages at 1.5× their regular rate. Public-sector employers (state and local government) may offer compensatory time at 1.5 hours per overtime hour, up to 240 hours (480 hours for public safety and seasonal workers), under 29 U.S.C. § 207(o) and S.C. Code Regs. § 19-707.02.
Does working on weekends or holidays count as overtime in South Carolina?
No. Under the FLSA, working on weekends or holidays does not automatically constitute overtime. Overtime depends solely on total hours worked in the workweek (any fixed 168-hour period), regardless of which days those hours occurred. South Carolina does not require premium pay for weekend or holiday work beyond what the FLSA requires.
What happens if my employer doesn’t pay overtime?
Employees may recover unpaid overtime wages plus liquidated damages equal to the unpaid amount under 29 U.S.C. § 216(b). Under the SC Payment of Wages Act, employees may recover three times the unpaid wages, plus attorney’s fees and costs (S.C. Code Ann. § 41-10-80). The FLSA statute of limitations is 2 years (3 years if willful); the state law deadline is 3 years.
What is the statute of limitations for overtime claims in South Carolina?
Under the FLSA: 2 years from the violation (3 years if the violation is willful). Under the SC Payment of Wages Act: 3 years from the date wages became due (S.C. Code Ann. § 41-10-80). Employees may choose whichever statute provides the better remedy, but claims under the Payment of Wages Act require that the overtime was agreed upon as a term of employment.
Does South Carolina have a state minimum wage?
No. South Carolina does not have a state minimum wage law as of March 2026. The federal minimum wage of $7.25/hour applies. Several bills to establish a state minimum wage have been introduced in the 2025–2026 legislative session but none have been enacted.
What protections does the SC Payment of Wages Act provide?
The SC Payment of Wages Act (S.C. Code Ann. §§ 41-10-10 to 41-10-110) requires employers to notify employees in writing of wages, pay schedules, and deductions at the time of hire; maintain payroll records for three years; and pay wages according to agreed-upon terms. When an employer fails to pay wages that are due and owed (including overtime amounts agreed upon or owed under federal law), employees can recover three times the unpaid amount in a civil action, plus attorney’s fees.
Sources and Verification
Primary Sources
- S.C. Code Ann. §§ 41-10-10 to 41-10-110 — SC Payment of Wages Act https://www.scstatehouse.gov/code/t41c010.php
- S.C. Code Regs. § 19-707.02 — State employee overtime/compensatory time https://www.law.cornell.edu/regulations/south-carolina/R-19-707.02
- SC Department of Labor, Licensing and Regulation — Office of Wages and Child Labor https://llr.sc.gov/wage/paymentofwages.aspx
- U.S. Department of Labor, Wage and Hour Division — Overtime https://www.dol.gov/agencies/whd/overtime
- Fair Labor Standards Act — 29 U.S.C. § 201–219 https://www.dol.gov/agencies/whd/flsa
- 29 C.F.R. Part 541 — Overtime Exemptions https://www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-541
- Internal Revenue Service — Overtime Tax Deduction FAQs https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
- IRS Notice 2025-69 (Individual Calculation Guidance for Overtime Deduction)
- IRS Notice 2025-62 (Employer Reporting Transition Relief for 2025)
- IRC § 225; P.L. 119-21 (One Big Beautiful Bill Act)
- S.C. H. 4751 (2025–2026) — Proposed daily overtime requirement https://www.scstatehouse.gov/sess126_2025-2026/bills/4751.htm
- S.C. H. 3793 (2025–2026) — Proposed state overtime income tax exemption https://www.scstatehouse.gov/sess126_2025-2026/bills/3793.htm
- S.C. H. 3298 (2025–2026) — Proposed state overtime income tax exemption https://www.scstatehouse.gov/sess126_2025-2026/bills/3298.htm
- S.C. H. 3368 (2025–2026) — Proposed exclusion of FLSA overtime from gross income https://www.scstatehouse.gov/sess126_2025-2026/bills/3368.htm
- U.S. DOL Wage and Hour Division — Complaint Filing https://www.dol.gov/agencies/whd/contact/complaints
- U.S. DOL — State Minimum Wage Laws (January 2026) https://www.dol.gov/agencies/whd/mw-consolidated