🇺🇸 SOUTH CAROLINA STATE LAW – 2026 UPDATE

South Carolina Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in South Carolina

South Carolina remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

South Carolina is generally characterized as having a business-friendly regulatory environment with employment laws that largely follow federal standards. According to official state sources, South Carolina tends to rely on federal law for many employment regulations rather than establishing separate state requirements.

General Characteristics (Information as of December 2025):

  • State minimum wage: None – follows federal minimum wage of $7.25/hour
  • Paid sick leave: Not mandated by state law for private employers
  • State income tax: Yes – progressive rates (0% to 6.5%)
  • Meal/rest breaks: Not mandated by state law for adult employees
  • Overtime rules: Follows federal Fair Labor Standards Act (FLSA)
  • Workers’ compensation: Generally required for employers with 4 or more employees

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, and individual circumstances. Consult official sources and legal counsel for guidance on specific situations.

Sources:

Official State Agency Information

The South Carolina Department of Labor, Licensing and Regulation (LLR) administers various employment laws in South Carolina.

Contact Information:

Note: This agency can provide official interpretations of state law. For legal advice on how laws apply to your specific situation, consult a licensed attorney.

Major State Employment Statutes

The following statutes are commonly referenced in employment matters. This is general information only and does not constitute legal interpretation.

1. South Carolina Payment of Wages Act

Statutory Citation: S.C. Code Ann. §§ 41-10-10 to 41-10-110
Official Source: https://www.scstatehouse.gov/code/t41c010.php

General Provisions (as stated in the statute): According to the South Carolina Payment of Wages Act, employers are generally expected to pay employees all wages due in accordance with established pay schedules. The statute addresses wage payment timing, deductions, and remedies for non-payment.

Application to Remote Work: These provisions generally apply based on where the employment relationship exists. Specific applicability depends on multiple factors. Consult South Carolina LLR or legal counsel for guidance.

Source: South Carolina Department of Labor, Licensing and Regulation – https://llr.sc.gov/

2. South Carolina Workers’ Compensation Law

Statutory Citation: S.C. Code Ann. Title 42
Effective Date: Originally enacted 1936; amended periodically
Official Source: https://www.scstatehouse.gov/code/title42.php

General Overview: According to Title 42 of the South Carolina Code of Laws, the Workers’ Compensation system provides a framework for compensating employees who sustain work-related injuries or illnesses. The law generally requires coverage for employers meeting certain criteria.

Coverage typically includes: Employers regularly employing 4 or more employees
Exemptions may include: Casual employees, certain agricultural workers, railroad employees, and others as specified in statute

Note: Coverage determinations are fact-specific and should be verified with the South Carolina Workers’ Compensation Commission and legal counsel.

Source: South Carolina Workers’ Compensation Commission – https://wcc.sc.gov/

3. South Carolina Human Affairs Law

Statutory Citation: S.C. Code Ann. §§ 1-13-10 to 1-13-110
Administering Agency: South Carolina Human Affairs Commission
Official Source: https://www.scstatehouse.gov/code/t01c013.php

General Overview: According to the South Carolina Human Affairs Law, discrimination in employment based on certain protected characteristics is addressed through state law. The law generally covers employers with 15 or more employees.

Protected characteristics may include: Race, color, religion, sex (including pregnancy), national origin, age (40 and above), and disability

Note: Specific protections, coverage thresholds, and enforcement procedures are detailed in the statute and regulations. For questions about discrimination, consult the South Carolina Human Affairs Commission or legal counsel.

Source: South Carolina Human Affairs Commission – https://schac.sc.gov/

Employee Classification Standards in South Carolina

South Carolina’s Classification Framework

According to South Carolina case law and official guidance, worker classification in South Carolina is generally analyzed using what courts refer to as the “right to control” test or the “four-factor test.”

Statutory Authority: South Carolina common law (case-based)
Key Cases: Wilkinson v. Palmetto State Transp. Co., 382 S.C. 295 (2009)
Official Guidance: No single state statute; determined through court precedent

General Framework (As Described by South Carolina Courts)

South Carolina courts have generally stated that an employee is one whom the employer has the right to control and direct in the performance of work, not only as to the result but also as to the means. An independent contractor is generally described as one who contracts to do work according to their own methods, without control by the employer except as to results.

The courts typically examine four factors to determine classification. This is a simplified summary – actual legal application is complex and fact-specific.

Factor 1: Right or Exercise of Control

General Description: Based on South Carolina case law, this factor generally examines whether the employer has the right to control or direct how, when, and where work is performed, not merely the end result.

Considerations that may be relevant (examples from case law):

  • Whether the employer sets work hours and schedules
  • Whether the employer provides detailed instructions on work methods
  • Whether the employer supervises the work closely
  • Whether the worker has freedom to refuse assignments
  • Whether the worker can work for others simultaneously

Illustrative Scenario (for general understanding only):

Scenario 1: A software developer works from home exclusively for one company. The company sets specific work hours (9 AM – 5 PM), requires attendance at daily video meetings, assigns specific tasks, monitors progress through project management software, and provides detailed specifications for all code.

General Analysis: This scenario may share characteristics commonly associated with employee relationships because the hiring entity appears to exercise significant control over how, when, and where work is performed. However, actual classification depends on all facts and circumstances, including other factors discussed below. This is not a determination.

Scenario 2: A graphic designer contracts with multiple clients, sets their own schedule, determines their own work methods, quotes project prices, and uses their own equipment and software. The client provides project requirements but does not dictate how or when the work is completed.

General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships because the worker appears to retain significant control over work methods and scheduling. Actual classification requires analysis of complete situation and all four factors.

⚠️ Important: These examples are purely illustrative and do not constitute legal determinations. Classification depends on the totality of circumstances and should be evaluated by legal counsel.

Factor 2: Furnishing of Equipment

General Description: South Carolina courts have generally considered whether the employer or the worker provides the tools, equipment, and materials necessary to perform the work.

Considerations that may be relevant:

  • Who owns the computer, software, or specialized equipment used
  • Whether the employer provides office space or workspace
  • Who bears the cost of supplies and materials
  • Whether the worker has made their own business investment

Remote Work Context: For remote workers, this may involve examining who provides the home office equipment, internet service, software licenses, and other tools necessary for work.

Factor 3: Method of Payment

General Description: According to South Carolina courts, the manner in which a worker is compensated may be relevant to classification analysis.

Considerations that may be relevant:

  • Whether payment is time-based (hourly/salary) or project-based
  • Whether the worker submits invoices or receives regular paychecks
  • Whether the worker assumes profit/loss risk
  • Whether the worker has business expenses that affect net income

Note: Method of payment alone is not determinative. South Carolina courts examine this factor alongside others.

Factor 4: Right to Fire

General Description: South Carolina case law has generally examined whether the hiring entity has the right to terminate the relationship at will or whether contractual provisions govern termination.

Considerations that may be relevant:

  • Whether termination can occur immediately with no further obligation
  • Whether a contract specifies completion requirements and payment terms
  • Whether the worker can be “fired” versus contract being breached
  • Whether South Carolina’s at-will employment doctrine applies

Note: South Carolina is an at-will employment state, meaning employees generally may be terminated at any time without cause (subject to exceptions). Independent contractors typically work under contracts with specific terms.

Remote Work Classification Considerations

For remote workers, classification analysis may involve additional complexities:

  • Physical work location versus business location
  • Nature of work relationship in virtual environment
  • Level of control and independence in remote setting
  • Whether geographic location affects the control relationship

These factors do not change the legal test but may affect how the test is applied. Classification of remote workers should be reviewed with legal counsel familiar with South Carolina law and your specific circumstances.

Potential Consequences of Misclassification

According to South Carolina law and agency guidance, misclassification may result in:

For Employers:

  • Potential back payment of unemployment insurance contributions
  • Possible workers’ compensation insurance premium adjustments and penalties
  • Potential wage and hour claim exposure under federal and state law
  • Possible penalties and interest from tax authorities
  • Exposure to employment law claims (discrimination, etc.)

For Workers:

  • May affect access to unemployment benefits
  • May affect workers’ compensation coverage
  • May affect wage and hour protections
  • May affect leave benefit eligibility
  • May affect tax obligations

Note: The specific consequences depend on many factors and vary by context (tax, workers’ comp, wage-hour, etc.). This is general information only.

Source: South Carolina Workers’ Compensation Commission, South Carolina Department of Employment and Workforce, South Carolina Department of Revenue

How to Seek Guidance

Classification questions should be addressed through:

  • South Carolina Department of Labor, Licensing and Regulation: (803) 896-4300 – https://llr.sc.gov/
  • Employment attorney licensed in South Carolina
  • Tax professional familiar with South Carolina and federal law
  • South Carolina Workers’ Compensation Commission: https://wcc.sc.gov/
  • IRS (for federal tax implications): 1-800-829-1040

⚠️ CRITICAL REMINDER: Worker classification is a legal determination that should be made with professional guidance. The information above is for general educational purposes and does not constitute a classification analysis or legal advice. Each situation must be evaluated based on its specific facts and all applicable legal standards.

Minimum Wage Information

Current Rate Information (As Published by Federal Sources)

South Carolina does not have a state minimum wage law. According to the U.S. Department of Labor, the federal minimum wage applies to covered employers in South Carolina.

Effective Date Rate Authority
July 24, 2009 – Present $7.25/hour Federal Fair Labor Standards Act (FLSA)

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/minimum-wage/state

Note: Some employees may be exempt from minimum wage requirements under federal law. See Exemptions section below.

Application to Remote Workers

According to general legal principles and federal guidance:

  • Minimum wage typically applies based on where work is physically performed
  • A worker performing work from a location in South Carolina would generally be subject to federal minimum wage
  • Employer location is generally not the determining factor for minimum wage obligations

However, specific situations may vary. Employers should consult the U.S. Department of Labor Wage and Hour Division or legal counsel for guidance on particular circumstances.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd

Federal Contractor Minimum Wage

For employees working on or in connection with covered federal contracts, a higher minimum wage may apply under Executive Order 14026.

2025 Rate: $17.75/hour (effective January 1, 2025)

Note: This applies only to certain federal contract work. Verify applicability with contracting officer or legal counsel.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/government-contracts/eo14026

Tipped Employees

According to federal law (FLSA), employers may pay tipped employees a reduced direct cash wage if certain conditions are met.

Federal Tipped Minimum Wage:

  • Direct Cash Wage: $2.13/hour
  • Tip Credit: Up to $5.12/hour
  • Total (with tips): Must equal at least $7.25/hour

Requirements (generally):

  • Employee must regularly receive more than $30/month in tips
  • Employer must notify employee of tip credit provisions
  • Tips plus direct wage must equal federal minimum wage
  • Employee retains all tips (with limited exceptions for valid tip pools)

Note: If tips plus direct wage do not equal minimum wage, employer must make up the difference. Tip credit rules are complex; consult Wage and Hour Division for specific situations.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/15-flsa-tipped-employees

Youth Minimum Wage

Under federal law, employers may pay a youth minimum wage to employees under age 20 during their first 90 consecutive calendar days of employment.

Youth Minimum Wage: $4.25/hour (for first 90 days only)

After 90 days: Regular minimum wage ($7.25/hour) applies

Note: Specific restrictions and limitations apply. This wage may not be used to displace other workers.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/32-youth-minimum-wage

Variations and Exemptions

According to federal law and regulations, certain workers may be exempt from minimum wage requirements:

Common Exemptions Under FLSA:

  • Executive, administrative, and professional employees (meeting salary and duties tests)
  • Outside sales employees
  • Certain computer professionals
  • Some seasonal and recreational employees
  • Certain agricultural workers

Full-Time Students: Under certain circumstances, employers may obtain certificates to pay full-time students at 85% of minimum wage ($6.16/hour)

Workers with Disabilities: Special minimum wage certificates may be available in limited circumstances under Section 14(c) of FLSA (though this program is being phased out in many contexts)

Note: Exemptions are narrowly construed and fact-specific. Do not assume an exemption applies without verification from official sources and legal counsel.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fact-sheets/14-flsa-coverage

No Local Minimum Wages in South Carolina

According to available information, no cities or counties in South Carolina have enacted local minimum wages separate from federal requirements.

Comparison Information (For Reference Only)
State/Jurisdiction 2025 Rate 2026 Rate Notes
South Carolina $7.25 (federal) $7.25 (federal) Follows federal minimum wage
North Carolina $7.25 (federal) TBD Also follows federal minimum wage
Georgia $5.15 (state)* TBD *Federal rate applies to covered employers
Federal FLSA $7.25 TBD No announced federal increase

This comparison is for general reference only. Each jurisdiction’s laws apply based on where work is performed and other factors.

Resources for Current Information

⚠️ CRITICAL REMINDER: Minimum wage compliance depends on many factors including employer size, employee type, work location, and federal coverage. This information is general background only. Consult official sources and legal counsel for specific compliance obligations.

Overtime and Break Requirements in South Carolina

A. Overtime Standards

Governing Framework: South Carolina does not have separate state overtime laws. According to the South Carolina Department of Labor, Licensing and Regulation, the federal Fair Labor Standards Act (FLSA) governs overtime in South Carolina.

Statutory Authority: Fair Labor Standards Act, 29 U.S.C. § 207
Official Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/flsa

General Overtime Threshold (as stated in federal law)

  • Typically triggered after: 40 hours per workweek
  • Rate generally required: 1.5 times the regular rate of pay
  • Workweek definition: A fixed and regularly recurring period of 168 hours (7 consecutive 24-hour periods)

⚠️ Daily Overtime: South Carolina (following federal law) does not generally require overtime for work beyond a certain number of hours in a single day. Overtime is calculated on a weekly basis.

Application to Remote Workers: Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers.

However, specific applicability depends on exemption status, which requires detailed analysis. See Exemptions section below.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/overtime

Calculating Compensable Time

According to federal guidance, “hours worked” for overtime calculation purposes may include:

  • Time actually performing work duties
  • Required meetings and training
  • Time waiting to perform work (in some circumstances)
  • Time traveling for work (in some circumstances)
  • On-call time (depending on restrictions imposed)

⚠️ Complex Issue for Remote Workers: Determining compensable time for remote workers can involve additional considerations:

  • After-hours email responses and communications
  • On-call time at home
  • Time spent in virtual meetings outside regular hours
  • Work performed outside scheduled hours

These determinations are fact-specific. Employers should consult wage-hour counsel for guidance on tracking and compensating remote workers’ time.

Source: U.S. Department of Labor Fact Sheet #22 – https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked

Overtime Exemptions

Federal law recognizes certain exemptions from overtime requirements. To qualify for most exemptions, employees generally must meet all of the following tests:

1. Salary Basis Test

Paid a predetermined salary not subject to reduction based on quality or quantity of work performed

2. Salary Level Test

2025 Thresholds (effective January 1, 2025):

  • Standard threshold: $1,128 per week ($58,656 annually)
  • Highly Compensated Employee (HCE): $151,164 annually

Note: These thresholds were adjusted as of January 1, 2025. Verify current thresholds with the Department of Labor as they may change.

Source: U.S. Department of Labor Final Rule (2025)

3. Duties Test

Performs exempt-level duties as defined in regulations

Common White Collar Exemptions

The following provides general descriptions. Actual exemption determinations require detailed analysis by legal counsel.

Executive Exemption: According to DOL regulations, this exemption may apply when an employee:

  • Has primary duty of managing the enterprise or a department/subdivision
  • Regularly directs work of at least 2 full-time employees (or equivalent)
  • Has authority to hire/fire or makes recommendations given particular weight

Administrative Exemption: May apply when an employee:

  • Performs office or non-manual work directly related to management or general business operations
  • Exercises discretion and independent judgment on matters of significance

Professional Exemption: May apply when an employee:

  • Performs work requiring advanced knowledge in a field of science or learning
  • The advanced knowledge is customarily acquired through prolonged specialized instruction
  • OR performs work requiring invention, imagination, originality, or talent in a recognized artistic field

⚠️ Important: Job title alone does not determine exemption status. Meeting the salary threshold alone is insufficient. All three tests (salary basis, salary level, and duties) must be satisfied. Consult DOL guidance and legal counsel for classification decisions.

Source: U.S. Department of Labor Fact Sheet #17A – https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime

Computer Professional Exemption

May apply to certain computer employees who meet either:

Option 1 – Salary:

  • Paid at least $1,128/week ($58,656/year) as of January 1, 2025

Option 2 – Hourly:

  • Paid at least $27.63/hour (as of 2025)

PLUS Duties Test: Primary duty consists of:

  • Application of systems analysis techniques and procedures
  • Design, development, documentation, analysis, creation, testing, or modification of computer systems or programs
  • Design, documentation, testing, creation, or modification of computer programs related to machine operating systems

Note: This exemption has specific technical requirements. Computer employees performing routine tasks may not qualify.

Source: U.S. Department of Labor Fact Sheet #17E – https://www.dol.gov/agencies/whd/fact-sheets/17e-overtime-computer

Outside Sales Exemption

May apply when employee:

  • Has primary duty of making sales or obtaining orders/contracts
  • Is customarily and regularly engaged away from employer’s place of business

Note: No salary requirement for outside sales exemption.

B. Meal and Rest Break Requirements

South Carolina’s Break Standards:

According to the South Carolina Department of Labor, Licensing and Regulation, South Carolina does not have state laws requiring meal or rest breaks for adult employees.

What this generally means:

  • Employers are not required by South Carolina law to provide breaks
  • If employers choose to provide breaks, federal rules may apply (see below)
  • Other leave protections may exist under different laws (FMLA, ADA, etc.)

Source: South Carolina Department of Labor, Licensing and Regulation – https://llr.sc.gov/

Federal Break Standards (If Employer Provides Breaks Voluntarily)

If an employer chooses to provide breaks, the federal Fair Labor Standards Act (FLSA) provides:

Short Breaks (5-20 minutes):

  • Generally considered compensable work time
  • Must be counted as hours worked for overtime calculation
  • Typically used for coffee breaks, restroom breaks, etc.

Bona Fide Meal Periods (30+ minutes):

  • May be unpaid if employee is completely relieved of duties
  • Employee must be free to leave workstation
  • Cannot be required to perform any work duties
  • If interrupted by work, must be paid

⚠️ Important: If an employee is not completely relieved of duties during a meal period, the time must be compensated as work time.

Source: U.S. Department of Labor Fact Sheet #22 – https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked

Special Considerations for Remote Workers

Break Compliance Challenges: For remote workers, employers may face challenges in:

  • Verifying breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance with voluntary break policies
  • Handling interruptions during breaks
  • Monitoring compensable time

Best Practices (General Recommendations Only): Employers working with remote employees may wish to consider:

  • Clear written policies on breaks and meal periods
  • Time tracking systems that document breaks
  • Training on proper break documentation
  • Regular audits of timekeeping records
  • Consultation with legal counsel on remote work policies

Note: These are general suggestions only, not legal requirements. Specific policy needs should be developed with guidance from legal counsel.

Other Protected Break Rights

While South Carolina does not require general breaks, other laws may provide specific break rights:

Nursing Mothers: Under federal law (FLSA), employers must provide:

  • Reasonable break time for nursing mothers to express milk
  • For one year after child’s birth
  • A private location (not a bathroom) for expressing milk
  • Applies to non-exempt employees

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/nursing-mothers

Jury Duty: South Carolina law generally protects employees who serve on jury duty from termination or penalty.

Military Leave: Federal USERRA protections apply.

Voting: South Carolina law does not require paid time off for voting.

Resources and Guidance

For specific questions about overtime and breaks:

  • U.S. Department of Labor Wage and Hour Division: 1-866-4-USWAGE (1-866-487-9243)
  • U.S. DOL Website: https://www.dol.gov/agencies/whd
  • South Carolina Department of Labor, Licensing and Regulation: (803) 896-4300
  • Employment attorney or HR counsel

⚠️ CRITICAL REMINDER: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, liquidated damages, and penalties. This information is for general background only. Employers should obtain professional guidance on classification, time tracking, and compensation compliance.

Paid Sick Leave Requirements

No State-Mandated Paid Sick Leave in South Carolina

According to available information, South Carolina does not currently have a state law requiring private employers to provide paid sick leave to employees.

What this generally means:

  • Private employers are generally not required by state law to provide paid sick leave
  • No localities within South Carolina have enacted local paid sick leave ordinances (as of December 2025)
  • Federal laws may provide certain unpaid leave protections (see below)
  • Employers may choose to provide paid sick leave voluntarily
  • State government employees have sick leave accrual rights under state employment policies

Source: South Carolina Department of Labor, Licensing and Regulation – https://llr.sc.gov/

Employer-Provided Sick Leave

If an employer voluntarily provides sick leave, they generally must:

  • Follow terms outlined in their own company policies or employment contracts
  • Apply policies consistently and non-discriminatorily
  • Comply with any contractual obligations made to employees

Note: Even without state-mandated paid sick leave, employers may have obligations under other laws for unpaid leave or reasonable accommodations. See sections below.

State Employee Sick Leave

For South Carolina state government employees:

According to state employment policies, full-time state employees may accrue:

  • Accrual Rate: 1.25 days of sick leave per month (15 days per year)
  • Carryover: No limit on accumulation
  • Usage: For employee illness, family illness, medical appointments

Note: These provisions apply only to state government employment. Private employers are not required to follow this model.

Source: South Carolina Division of State Human Resources

Federal Protections

While South Carolina does not require paid sick leave, certain federal laws may provide unpaid leave:

Family and Medical Leave Act (FMLA): May provide up to 12 weeks of unpaid, job-protected leave in a 12-month period for:

  • Employee’s own serious health condition
  • Care for family member with serious health condition
  • Birth/adoption of child
  • Certain military family leave

Eligibility Requirements:

  • Employer has 50+ employees within 75-mile radius
  • Employee worked for employer 12+ months
  • Employee worked 1,250+ hours in past 12 months

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

Americans with Disabilities Act (ADA): May require reasonable accommodations for employees with disabilities, which could include modified leave policies in some circumstances.

Source: U.S. Equal Employment Opportunity Commission – https://www.eeoc.gov/laws/guidance/

Proposed Legislation

As of December 2025, House Bill 3226 was introduced in the South Carolina Legislature proposing to establish a state minimum wage and adjust it over time. Separately, various employment-related bills are periodically introduced. Employers should monitor legislative developments.

Note: Until legislation is enacted and effective, proposed bills do not create legal requirements.

Source: South Carolina Legislature – https://www.scstatehouse.gov/

⚠️ Note: Even without state-mandated paid sick leave, employers may have obligations under other laws. Consult legal counsel for comprehensive compliance review, particularly regarding FMLA, ADA, workers’ compensation, and discrimination laws.

Workers' Compensation Overview

Legal Framework

Statutory Authority: S.C. Code Ann. Title 42
Administering Agency: South Carolina Workers’ Compensation Commission

South Carolina Workers’ Compensation Commission:

  • Website: https://wcc.sc.gov/
  • Phone: (803) 737-5700
  • Address: 1333 Main Street, Suite 500, Columbia, SC 29201
  • Office Hours: 8:30 AM – 5:00 PM (Monday-Friday)

Source: South Carolina Workers’ Compensation Commission – https://wcc.sc.gov/

General Coverage Requirements (As Stated in Law)

According to South Carolina Code Section 42-1-130 and related provisions, workers’ compensation coverage is generally:

Required for:

  • Employers who regularly employ 4 or more employees within South Carolina
  • Employees include full-time, part-time, and family members
  • Coverage generally required regardless of whether employees work on-site or remotely

Exemptions may include:

  • Casual employees (not in the regular course of business)
  • Employers with fewer than 4 employees
  • Employers with annual payroll under $3,000 in the previous calendar year
  • Certain agricultural employees
  • Railroad and railway express company employees
  • Federal employees
  • Real estate agents on straight commission (meeting specific statutory requirements)
  • County and state fair associations

Note: Exemptions are narrowly interpreted. Employers uncertain about coverage obligations should consult the South Carolina Workers’ Compensation Commission or legal counsel.

Source: S.C. Code Ann. § 42-1-130 – https://www.scstatehouse.gov/code/t42c001.php

South Carolina’s Workers’ Compensation System

South Carolina operates a competitive state system where employers may obtain coverage through:

  1. Private Insurance Carriers: Licensed to write workers’ compensation insurance in South Carolina
  2. Self-Insurance: With approval from South Carolina Workers’ Compensation Commission
  3. Assigned Risk Pool: Administered by National Council on Compensation Insurance (NCCI) for employers unable to obtain coverage through standard market

What this generally means:

  • Employers choose their insurance carrier (if not self-insured)
  • Competitive market for coverage and rates
  • State regulates insurance carriers and rates

Source: South Carolina Workers’ Compensation Commission – https://wcc.sc.gov/employer-faqs

Remote Worker Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Standard: According to South Carolina workers’ compensation law and case precedent, coverage typically extends to injuries that “arise out of and in the course of employment.” Application of this standard to remote workers is fact-dependent.

Factors That May Be Considered: According to South Carolina case law, factors that may be relevant in determining compensability include:

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area or home office
  • Whether injury occurred during work hours
  • Whether activity was authorized or expected by employer
  • Whether activity served employer’s interests
  • The nature and extent of employer’s control over work environment

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each case is evaluated based on its complete facts and circumstances.

Source: South Carolina case law and Workers’ Compensation Commission guidance

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do not constitute coverage determinations or legal advice. Actual coverage depends on complete factual circumstances and official determination by South Carolina Workers’ Compensation Commission.

Scenario Category: Work-Related Activities in Home Office

Example Situation: Employee trips over computer cables in designated home office while walking to retrieve work documents during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have historically been analyzed under workers’ compensation law, such as:

  • Activity appears work-related (retrieving work documents)
  • Occurred in what may be considered work area (home office)
  • During scheduled work hours
  • Hazard (cables) connected to work equipment

However, compensability would depend on complete factual analysis including:

  • Whether home office was designated and approved work area
  • Whether employer knew of and authorized home office setup
  • Whether employer exercised any control over home workspace
  • Other specific circumstances and applicable case law

This is not a coverage determination. Actual determination would be made by South Carolina Workers’ Compensation Commission based on all facts and applicable law.

Example Situation: Employee develops carpal tunnel syndrome from extended computer use performing work duties over several months.

General Observations: Repetitive stress injuries may potentially be evaluated under workers’ compensation law, with analysis depending on factors such as:

  • Medical documentation establishing work-relatedness
  • Whether condition arose primarily from employment activities
  • Nature and extent of non-work activities that may contribute
  • Medical expert opinions on causation

Occupational disease and cumulative trauma claims have specific requirements under South Carolina law. Consult medical professionals and South Carolina Workers’ Compensation Commission for evaluation of such situations.

Scenario Category: Personal Activities at Home

Example Situation: Employee injured while preparing personal meal in kitchen during unpaid lunch break.

General Observations: Personal comfort activities unrelated to work duties may be analyzed differently under workers’ compensation law. General legal principles suggest that injuries during purely personal activities, during which the employee is completely relieved of work duties, may be viewed differently than injuries during work activities. However, specific facts matter, including:

  • Whether employee was completely relieved of all duties
  • Whether any work-related activity was occurring
  • The location and circumstances of injury
  • Applicable case law

This is general background only. Not a coverage determination.

Scenario Category: Travel-Related Issues

Example Situation: Employee injured in car accident while driving to pick up work supplies during work hours at employer’s request.

General Observations: Travel in the course of employment may be evaluated under South Carolina workers’ compensation law using various legal doctrines regarding work-related travel. Factors that may be relevant include:

  • Whether travel was at employer’s direction
  • Whether travel was within scope of employment
  • Whether employee was on “special errand” for employer
  • Other factual circumstances

Coverage determinations for travel-related injuries should be made by South Carolina Workers’ Compensation Commission based on complete facts.

⚠️Every workers’ compensation claim is unique and depends on its specific facts. Coverage determinations are made by the South Carolina Workers’ Compensation Commission based on complete information, applicable law, medical evidence, and testimony.

For any injury, consult:

  1. South Carolina Workers’ Compensation Commission for official guidance
  2. Licensed attorney for legal advice
  3. Medical professionals for injury evaluation and treatment

Benefits Generally Available (From Statute)

According to South Carolina workers’ compensation statutes, benefits may include:

Medical Benefits:

  • Coverage for reasonable and necessary medical treatment
  • Medical provider generally selected from employer’s designated panel
  • May include surgery, medication, physical therapy, medical devices

Temporary Total Disability:

  • Wage replacement when unable to work due to injury
  • Generally 66⅔% of average weekly wage
  • Subject to maximum weekly compensation rate

Temporary Partial Disability:

  • Wage replacement when able to work with restrictions at reduced earnings
  • Generally 66⅔% of difference between pre-injury and post-injury wages

Permanent Disability:

  • Compensation for permanent impairment resulting from injury
  • May be scheduled (specific body parts) or unscheduled
  • Amount depends on impairment rating and average weekly wage

Death Benefits:

  • Benefits to dependents if injury results in death
  • Burial expenses up to statutory limit

2025 Maximum Weekly Compensation Rate: $1,134.43 (for accidents occurring on or after January 1, 2025)

Note: Specific benefit amounts and eligibility depend on injury circumstances, medical evidence, and statutory formulas. Consult South Carolina Workers’ Compensation Commission or claims administrator for specific benefit information.

Source: S.C. Code Ann. Title 42; South Carolina Workers’ Compensation Commission – https://www.wcc.sc.gov/claims/compensation-rates

Reporting and Claim Process (General Framework)

According to South Carolina regulations, the general process typically involves:

For Employees:

  1. Report injury to employer: Generally should be done promptly (within 90 days recommended)
  2. Seek medical attention: From employer’s designated panel if possible
  3. File claim with Commission: Form 50 (injury) or Form 52 (death) must be filed within 2 years of accident or death to preserve rights

For Employers:

  1. Report to Commission: Form 12 (First Report of Injury) within 10 days if injury requires medical care beyond first aid or results in lost time
  2. Report to Insurance Carrier: Notify workers’ compensation insurance carrier promptly
  3. Provide medical treatment: Through approved medical providers
  4. Begin benefit payments: If accepting claim, payments should begin promptly

⚠️ Important: Deadlines are strictly enforced. Late reporting may affect claim eligibility or employer penalties. When in doubt, report promptly and seek guidance from South Carolina Workers’ Compensation Commission or legal counsel.

Source: South Carolina Workers’ Compensation Commission – https://wcc.sc.gov/injured-worker-faqs

Best Practices for Remote Work (General Recommendations)

The following are general considerations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals for specific guidance.

For Employers (Considerations to Discuss with Legal Counsel):

  • Developing clear remote work policies and agreements
  • Designating official remote work locations and areas
  • Providing ergonomic equipment or ergonomic assessments
  • Documenting home office setups and conditions
  • Establishing injury reporting procedures specific to remote workers
  • Providing safety training for home office environments
  • Maintaining clear policies on work hours and job duties
  • Consulting workers’ compensation insurance carrier about remote work
  • Regular review of remote work policies with legal counsel

For Employees (General Considerations):

  • Setting up dedicated, safe work area
  • Following employer’s safety guidelines and policies
  • Reporting work-related injuries promptly
  • Maintaining clear work hour boundaries
  • Documenting work location and setup if requested
  • Seeking clarification on injury reporting procedures

Note: These are general suggestions only. Specific policies should be developed with guidance from legal counsel, insurance professionals, and safety experts familiar with South Carolina workers’ compensation law.

Resources and Contacts

South Carolina Workers’ Compensation Commission:

For Legal Advice:

For Insurance Questions:

  • Your workers’ compensation insurance carrier
  • South Carolina Department of Insurance: (803) 737-6160

⚠️ FINAL CRITICAL REMINDER: Workers’ compensation is a highly specialized area involving complex medical, legal, and factual determinations. Coverage questions should be directed to:

  1. South Carolina Workers’ Compensation Commission for official determinations
  2. Licensed attorney for legal advice
  3. Medical professionals for injury evaluation and treatment

Other Leave Entitlements

Federal Family and Medical Leave Act (FMLA)

While South Carolina does not have separate state family leave laws, eligible employees may be covered by federal FMLA.

General Coverage (as described by U.S. Department of Labor):

Eligibility Requirements:

  • Employer size: 50 or more employees within 75-mile radius
  • Employee tenure: Worked for employer at least 12 months
  • Hours worked: At least 1,250 hours in past 12 months

Leave Provisions:

  • Amount: Up to 12 weeks of unpaid leave in 12-month period
  • Military caregiver leave: Up to 26 weeks in single 12-month period

Qualifying Reasons:

  • Birth and care of newborn child
  • Adoption or foster care placement
  • Employee’s serious health condition
  • Care for spouse, child, or parent with serious health condition
  • Qualifying exigency arising from family member’s military service
  • Care for covered servicemember with serious injury or illness

Job Protection: Generally, employee must be restored to same or equivalent position

Benefits Continuation: Employer must maintain group health insurance during leave

Note: FMLA has detailed eligibility, notice, and certification requirements. Consult U.S. Department of Labor or legal counsel for specific situations.

Source: U.S. Department of Labor – https://www.dol.gov/agencies/whd/fmla

Americans with Disabilities Act (ADA)

The ADA may require reasonable accommodations for employees with disabilities, which could include:

  • Modified work schedules
  • Leave as a reasonable accommodation (in some circumstances)
  • Flexible work arrangements
  • Other accommodations based on individual needs

Note: Leave under ADA is distinct from FMLA and may apply even when FMLA does not. Consult with legal counsel regarding ADA accommodation obligations.

Source: U.S. Equal Employment Opportunity Commission – https://www.eeoc.gov/laws/guidance/

Military Leave

Uniformed Services Employment and Reemployment Rights Act (USERRA): Provides job protection and reemployment rights for employees who serve in the uniformed services.

South Carolina Military Leave: South Carolina law provides certain protections for employees called to military service.

Source: S.C. Code Ann. § 25-1-2310 et seq.

Jury Duty Leave

South Carolina law generally protects employees from termination or penalty for serving on jury duty.

S.C. Code Ann. § 41-1-70 states that employers may not:

  • Permanently discharge employee for jury service
  • Threaten discharge for jury service

Note: South Carolina law does not require employers to pay employees during jury duty, though employers may choose to do so.

Source: S.C. Code Ann. § 41-1-70

Voting Leave

South Carolina law does not require employers to provide paid or unpaid time off for voting. However, employers may choose to provide such leave voluntarily.

Emergency Responder Leave

South Carolina law provides certain protections for volunteer firefighters, emergency medical personnel, and other emergency responders.

General Framework: Employers may be required to allow employees to respond to emergency calls during work hours in some circumstances. Specific provisions and limitations apply.

Source: S.C. Code Ann. § 23-9-315

Pregnancy Accommodations

South Carolina Pregnancy Accommodations Act: Requires covered employers to provide reasonable accommodations for medical needs arising from pregnancy, childbirth, or related medical conditions.

Coverage:

  • Employers with 15 or more employees

Accommodations may include:

  • More frequent breaks
  • Modified work schedules
  • Temporary transfer to less strenuous position
  • Assistance with manual labor

Note: Employers must provide written notice of pregnancy accommodation rights at time of hire.

Source: S.C. Code Ann. § 1-13-30(T); South Carolina Human Affairs Commission – https://schac.sc.gov/

⚠️ Note: Leave entitlements can overlap and interact in complex ways. For situations involving multiple leave types (FMLA, ADA, workers’ compensation, pregnancy accommodations), consult with legal counsel to ensure compliance with all applicable laws.

Anti-Discrimination Laws

South Carolina Human Affairs Law

Statutory Authority: S.C. Code Ann. §§ 1-13-10 to 1-13-110
Administering Agency: South Carolina Human Affairs Commission (SCHAC)

South Carolina Human Affairs Commission:

Source: South Carolina Human Affairs Commission – https://schac.sc.gov/

Protected Characteristics

According to the South Carolina Human Affairs Law, discrimination in employment is generally addressed based on:

  • Race
  • Color
  • Religion
  • Sex (including pregnancy, childbirth, lactation, and related medical conditions)
  • National origin
  • Age (40 and above)
  • Disability

Note: As of December 2025, South Carolina law does not explicitly include sexual orientation or gender identity as protected characteristics under state employment discrimination law (though federal law protections may apply in some contexts).

Source: S.C. Code Ann. § 1-13-80; South Carolina Human Affairs Commission – https://schac.sc.gov/employment-discrimination

Coverage and Applicability

Employer Coverage: The South Carolina Human Affairs Law generally applies to:

  • Employers with 15 or more employees
  • Employment agencies
  • Labor organizations

Employee Coverage: Generally covers employees, applicants, and former employees

Note: Employers with fewer than 15 employees may not be covered by state law but may be covered by federal laws. Federal anti-discrimination laws often have the same or similar thresholds.

Source: S.C. Code Ann. § 1-13-80

Prohibited Employment Practices

According to the South Carolina Human Affairs Law and Commission guidance, discrimination may be prohibited in:

  • Hiring and recruitment
  • Job advertisements
  • Applications and interviews
  • Compensation and benefits
  • Promotion and advancement
  • Training and apprenticeship programs
  • Discipline and discharge
  • Terms, conditions, and privileges of employment
  • Harassment (creating hostile work environment)
  • Retaliation for opposing discrimination or participating in investigation

Source: South Carolina Human Affairs Commission – https://schac.sc.gov/employment-discrimination/prohibited-practices-discrimination-types

Pregnancy Accommodations

As noted in the Leave section, the South Carolina Pregnancy Accommodations Act requires:

  • Reasonable accommodations for pregnancy-related medical needs
  • Applies to employers with 15 or more employees
  • Written notice to employees at time of hire

Source: S.C. Code Ann. § 1-13-30(T)

Disability Accommodations

The South Carolina Human Affairs Law requires reasonable accommodations for employees and applicants with disabilities, unless doing so would cause undue hardship to the employer.

Reasonable accommodation may include:

  • Modifications to work environment
  • Adjustments to work schedules
  • Reassignment to vacant position
  • Modifications to equipment or policies
  • Other accommodations based on individual needs

Interactive Process: Employers and employees should engage in interactive dialogue to identify effective accommodations.

Note: South Carolina disability discrimination provisions work in conjunction with federal Americans with Disabilities Act (ADA). Employers should consult both state and federal guidance.

Source: South Carolina Human Affairs Commission; U.S. Equal Employment Opportunity Commission

Religious Accommodations

Employers are generally expected to reasonably accommodate employees’ religious beliefs and practices, unless doing so would cause undue hardship.

Accommodations may include:

  • Schedule modifications for religious observances
  • Dress code exceptions for religious attire
  • Voluntary shift swaps
  • Other reasonable adjustments

Source: South Carolina Human Affairs Commission – https://schac.sc.gov/employment-discrimination/prohibited-practices-discrimination-types

Harassment

The law prohibits harassment based on protected characteristics, including:

  • Sexual harassment
  • Racial harassment
  • Religious harassment
  • Age-based harassment
  • Other forms of harassment based on protected characteristics

Harassment may include:

  • Unwelcome conduct based on protected characteristic
  • Conduct that creates intimidating, hostile, or offensive work environment
  • Quid pro quo harassment (conditioning employment benefits on submission to unwelcome conduct)

Employer Liability: Employers may be liable for harassment by supervisors, co-workers, or third parties under certain circumstances.

Source: South Carolina Human Affairs Commission – https://schac.sc.gov/employment-discrimination/prohibited-practices-discrimination-types

Retaliation

It is generally prohibited to retaliate against an individual for:

  • Filing a discrimination complaint
  • Participating in discrimination investigation or proceeding
  • Opposing discriminatory practices
  • Requesting accommodation

Forms of retaliation may include:

  • Termination or demotion
  • Reduction in pay or benefits
  • Negative performance reviews
  • Harassment or hostile treatment

Source: S.C. Code Ann. § 1-13-80; South Carolina Human Affairs Commission

Filing a Discrimination Complaint

Process Overview:

  1. File Charge with SCHAC: • Must generally be filed within 180 days of alleged discriminatory act • Form available at https://schac.sc.gov/ • May also be filed with federal EEOC (which may extend deadline to 300 days)
  2. Investigation: • SCHAC investigates complaint • May attempt mediation or conciliation
  3. Outcomes: • SCHAC determination • Right to sue letter (if seeking to file lawsuit)

Note: Specific procedures, deadlines, and requirements apply. Contact SCHAC or legal counsel for guidance on filing discrimination complaints.

Source: South Carolina Human Affairs Commission – https://schac.sc.gov/employment-discrimination/how-file-employment-complaints

Federal Anti-Discrimination Laws

In addition to state law, federal laws prohibit employment discrimination:

Title VII of the Civil Rights Act of 1964:

  • Prohibits discrimination based on race, color, religion, sex, national origin
  • Applies to employers with 15+ employees

Age Discrimination in Employment Act (ADEA):

  • Prohibits age discrimination (40+)
  • Applies to employers with 20+ employees

Americans with Disabilities Act (ADA):

  • Prohibits disability discrimination
  • Requires reasonable accommodations
  • Applies to employers with 15+ employees

Equal Pay Act:

  • Requires equal pay for equal work regardless of sex

Pregnancy Discrimination Act:

  • Prohibits discrimination based on pregnancy, childbirth, related conditions

Genetic Information Nondiscrimination Act (GINA):

  • Prohibits discrimination based on genetic information

Source: U.S. Equal Employment Opportunity Commission – https://www.eeoc.gov/

Application to Remote Workers

Anti-discrimination laws generally apply to remote workers in the same manner as on-site workers. Protected characteristics do not vary based on work location.

Remote Work Considerations:

  • Discrimination protections apply during hiring for remote positions
  • Harassment can occur in virtual work environments
  • Reasonable accommodations may include remote work arrangements
  • Retaliation protections apply to remote workers

Note: Specific application may vary by circumstances. Consult SCHAC, EEOC, or legal counsel for guidance on discrimination issues involving remote workers.

Resources

South Carolina Human Affairs Commission:

U.S. Equal Employment Opportunity Commission:

Legal Assistance:

  • Employment attorney licensed in South Carolina
  • South Carolina Bar Association: (803) 799-6653

⚠️ Note: Discrimination law is complex and involves analysis of specific facts and circumstances. For situations involving potential discrimination, harassment, or retaliation, consult South Carolina Human Affairs Commission, EEOC, or legal counsel promptly. Documentation and timely action may be important for protecting rights.

Remote Work Considerations

General Employment Law Application

According to South Carolina law and general legal principles, most employment laws apply to remote workers in the same manner as on-site workers. The physical location where work is performed, rather than the employer’s location, often determines which state’s laws apply.

Key Principles:

  • Minimum wage: Generally based on where work is physically performed
  • Overtime: Generally applies to non-exempt workers regardless of location
  • Workers’ compensation: Generally applies based on employment relationship and work location
  • Discrimination laws: Generally apply to all employees regardless of work location
  • Classification: Analysis does not change based on remote status

Source: General legal principles; consult legal counsel for specific situations

Unique Challenges for Remote Work

Timekeeping and Compensable Time:

  • Tracking hours worked when employees work from home
  • Determining when remote work time is compensable
  • Managing after-hours communications and emails
  • On-call time at home

Workers’ Compensation:

  • Determining compensability of home office injuries
  • Documenting home workspace conditions
  • Managing safety in spaces not controlled by employer

Equipment and Expenses:

  • Who provides equipment for remote work
  • Reimbursement for internet, phone, supplies (no South Carolina requirement, but may be contractual or policy-based)

Privacy and Security:

  • Protecting confidential business information
  • Data security in home environments
  • Privacy considerations for remote monitoring

Note: These challenges should be addressed through clear policies developed with legal counsel.

Best Practices for Employers (General Recommendations)

The following are general considerations. They are not legal requirements and may not be suitable for all situations. Develop specific policies with guidance from legal counsel.

Written Remote Work Agreements:

  • Define remote work arrangement terms
  • Specify work location(s)
  • Address work hours and availability expectations
  • Outline equipment provision and responsibilities
  • Include termination provisions

Clear Policies:

  • Work hours and break policies
  • Timekeeping requirements
  • Communication expectations
  • Equipment use and security
  • Injury reporting procedures
  • Performance expectations

Training:

  • Time tracking for remote workers
  • Ergonomics and workplace safety
  • Data security best practices
  • Company policies and procedures

Regular Review:

  • Monitor compliance with wage-hour laws
  • Review classification decisions
  • Update policies as needed
  • Consult with legal counsel periodically

Multi-State Remote Work Considerations

Employers with remote workers in multiple states may need to consider:

  • Which state’s employment laws apply
  • Multi-state tax withholding requirements
  • Workers’ compensation coverage across states
  • Registration and licensing requirements
  • Varying state employment laws

Note: Multi-state employment creates significant complexity. Employers should consult legal and tax professionals experienced with multi-state employment issues.

Resources for Remote Work Guidance

  • South Carolina Department of Labor, Licensing and Regulation: (803) 896-4300 – https://llr.sc.gov/
  • U.S. Department of Labor: https://www.dol.gov/
  • Employment attorney licensed in South Carolina
  • HR compliance professionals

Tax Information

State Income Tax Overview

South Carolina Individual Income Tax:

According to the South Carolina Department of Revenue, South Carolina has a state income tax with progressive rates.

2025 Tax Rates (General Framework):

  • South Carolina uses a graduated tax structure
  • Rates range from 0% to 6.5% based on income level
  • Standard deductions and exemptions may apply

Note: Specific rates, brackets, and deductions change periodically. Verify current rates with South Carolina Department of Revenue or tax professional.

Source: South Carolina Department of Revenue – https://dor.sc.gov/

Withholding for Remote Workers

General Principle: According to South Carolina law and general tax principles, state income tax withholding is typically based on where the work is physically performed.

South Carolina Code Section 12-8-520 generally addresses withholding requirements for wages earned in South Carolina.

Common Scenarios:

Scenario 1: South Carolina Resident Working for South Carolina Employer

  • South Carolina withholding typically applies

Scenario 2: South Carolina Resident Working Remotely for Out-of-State Employer

  • If performing work from South Carolina: South Carolina withholding may apply
  • May also be subject to other state’s withholding (resulting in potential dual taxation)
  • Credit for taxes paid to other states may be available

Scenario 3: Non-Resident Working in South Carolina

  • South Carolina withholding may apply to work performed in South Carolina

Note: Specific situations can be complex, especially with reciprocity agreements and credit provisions. Consult South Carolina Department of Revenue or tax professional.

Source: S.C. Code Ann. § 12-8-520; South Carolina Department of Revenue – https://dor.sc.gov/

Business Nexus Considerations

General Concept: “Nexus” refers to the connection between a business and a state that may create tax obligations. A remote employee working from a state may create nexus for the employer.

Potential Implications of Nexus:

  • Corporate income tax obligations
  • Sales tax collection requirements
  • Franchise tax obligations
  • Business registration requirements

Note: Nexus analysis is highly fact-specific and varies by type of tax. Businesses with remote employees in South Carolina should consult tax professionals regarding potential nexus implications.

Source: South Carolina Department of Revenue; consult tax professional

Unemployment Insurance Tax

Employers generally must pay unemployment insurance taxes on wages of covered employees.

South Carolina Department of Employment and Workforce administers unemployment insurance.

Contact Information:

Note: Unemployment insurance tax rates and requirements vary by employer. Consult SCDEW for specific obligations.

Federal Tax Considerations

Federal Income Tax Withholding: Employers must withhold federal income tax from employee wages regardless of work location.

FICA Taxes (Social Security and Medicare):

  • Social Security: 6.2% (employer) + 6.2% (employee)
  • Medicare: 1.45% (employer) + 1.45% (employee)
  • Additional Medicare Tax: 0.9% on wages over threshold (employee only)

Federal Unemployment Tax (FUTA): Employers generally must pay FUTA tax.

Source: Internal Revenue Service – https://www.irs.gov/

Independent Contractor Tax Reporting

Form 1099-NEC: Generally required for independent contractors paid $600 or more in a year

Note: Misclassification for tax purposes can result in significant penalties. Review classification section of this guide and consult tax professional.

Home Office Deduction

For Employees: Under current federal tax law (as of December 2025), employees generally cannot deduct home office expenses. The Tax Cuts and Jobs Act suspended unreimbursed employee expense deductions through 2025.

For Self-Employed/Independent Contractors: May be able to deduct home office expenses if:

  • Space is used regularly and exclusively for business
  • Space is principal place of business
  • Other requirements met

Note: Home office deduction rules are complex. Consult tax professional.

Source: Internal Revenue Service – https://www.irs.gov/

Resources for Tax Information

South Carolina Department of Revenue:

South Carolina Department of Employment and Workforce:

Internal Revenue Service:

Professional Assistance:

  • Certified Public Accountant (CPA)
  • Enrolled Agent (EA)
  • Tax Attorney

⚠️ CRITICAL TAX REMINDER: Tax laws are complex and change frequently. State and federal tax obligations depend on many specific factors including:

  • Employer and employee locations
  • Nature of employment relationship
  • Business structure
  • Income levels
  • Applicable credits and deductions
  • Multi-state considerations

Resources

State Government Agencies

South Carolina Department of Labor, Licensing and Regulation (LLR)

  • Website: https://llr.sc.gov/
  • Phone: (803) 896-4300
  • Address: 110 Centerview Drive, Columbia, SC 29210
  • Email: ContactLLR@llr.sc.gov
  • Services: General employment law information, wage payment, occupational safety

South Carolina Workers’ Compensation Commission

  • Website: https://wcc.sc.gov/
  • Phone: (803) 737-5700
  • Address: 1333 Main Street, Suite 500, Columbia, SC 29201
  • Services: Workers’ compensation coverage, claims, employer compliance

South Carolina Human Affairs Commission

  • Website: https://schac.sc.gov/
  • Phone: (803) 737-7800
  • Address: 1 Pendleton Street, Suite 614, Columbia, SC 29201
  • Services: Discrimination complaints, equal opportunity information

South Carolina Department of Revenue

  • Website: https://dor.sc.gov/
  • Phone: (803) 898-5000
  • Services: Tax withholding, business taxes, income tax

South Carolina Department of Employment and Workforce

  • Website: https://dew.sc.gov/
  • Phone: (866) 831-1724
  • Services: Unemployment insurance, workforce development

Federal Agencies

U.S. Department of Labor – Wage and Hour Division

U.S. Equal Employment Opportunity Commission (EEOC)

  • Website: https://www.eeoc.gov/
  • National: 1-800-669-4000
  • Greenville Office: (864) 241-4400
  • Services: Federal discrimination complaints, guidance

Internal Revenue Service (IRS)

  • Website: https://www.irs.gov/
  • Phone: 1-800-829-1040
  • Services: Federal tax withholding, Form 1099, classification

Occupational Safety and Health Administration (OSHA)

Legal Assistance

South Carolina Bar Association

  • Website: https://www.scbar.org/
  • Lawyer Referral Service: (803) 799-6653
  • Services: Attorney referrals, legal resources

Legal Aid Organizations:

  • South Carolina Legal Services: https://sclegal.org/
  • Various pro bono and legal aid programs available

Professional Organizations

Society for Human Resource Management (SHRM)

National Association of Professional Employer Organizations (NAPEO)

Official Legal Resources

South Carolina Legislature – Code of Laws

South Carolina Legislature – Bills and Legislation

Additional Information Sources

U.S. Department of Labor – Compliance Assistance

Small Business Administration (SBA)

Frequently Asked Questions

General Employment Law

Q: Does South Carolina have a state minimum wage?

A: No. South Carolina does not have a separate state minimum wage law. According to federal law, the federal minimum wage of $7.25 per hour generally applies to covered employers in South Carolina. Some employees may be exempt from minimum wage under federal law. Consult the U.S. Department of Labor or legal counsel for specific questions.

Q: Are employers required to provide breaks in South Carolina?

A: South Carolina does not have state laws requiring meal or rest breaks for adult employees. However, if an employer voluntarily provides short breaks (5-20 minutes), those breaks are generally considered compensable work time under federal law. Bona fide meal periods (30+ minutes) may be unpaid if the employee is completely relieved of duties. Consult the U.S. Department of Labor for specific requirements.

Q: Does South Carolina require paid sick leave?

A: No. South Carolina does not currently have a state law requiring private employers to provide paid sick leave. Federal FMLA may provide unpaid leave for eligible employees. Employers may choose to provide paid sick leave voluntarily. For state government employees, different accrual rules apply.

Classification

Q: How do I know if someone is an employee or independent contractor?

A: South Carolina courts generally apply a “four-factor test” examining: (1) right to control work, (2) furnishing of equipment, (3) method of payment, and (4) right to fire. This analysis is complex and fact-specific. Misclassification can result in significant penalties. Consult legal counsel and tax professionals before making classification decisions. See the Employee Classification section of this guide for more information.

Q: Can I just use a 1099 form instead of a W-2?

A: No. The form used for tax reporting does not determine classification. Classification depends on the actual working relationship as analyzed under applicable legal tests. Using Form 1099 when an employment relationship exists constitutes misclassification and may result in tax penalties, wage claims, and other consequences. Consult tax and legal professionals for classification guidance.

Remote Work

Q: Do employment laws apply differently to remote workers?

A: Generally, no. Most South Carolina employment laws apply to remote workers in the same manner as on-site workers. The physical location where work is performed often determines which state’s laws apply. Remote work may create unique compliance challenges in areas like time tracking and workers’ compensation, but the underlying legal obligations typically remain the same.

Q: If my employee works from home in South Carolina but my business is in another state, which state’s laws apply?

A: This depends on several factors. Generally, laws of the state where work is physically performed often apply for purposes such as minimum wage, overtime, and tax withholding. However, some laws may apply based on the employer’s location or other factors. Multi-state employment creates significant complexity. Consult legal and tax professionals experienced with multi-state employment issues.

Q: Are home office injuries covered by workers’ compensation?

A: It depends on the specific facts and circumstances. South Carolina workers’ compensation generally covers injuries that “arise out of and in the course of employment.” Application to home office injuries is highly fact-specific and may depend on factors such as whether the employee was engaged in work activity, whether the injury occurred in a designated work area, and other circumstances. Each situation requires individual analysis. Consult the South Carolina Workers’ Compensation Commission and legal counsel for specific injury situations.

Workers’ Compensation

Q: Does my business need workers’ compensation insurance?

A: According to South Carolina law, workers’ compensation insurance is generally required for employers who regularly employ 4 or more employees within South Carolina. Part-time workers and family members count toward this threshold. Some exemptions exist. Consult the South Carolina Workers’ Compensation Commission at (803) 737-5700 or https://wcc.sc.gov/ to determine if coverage is required for your specific situation.

Q: Are independent contractors covered by workers’ compensation?

A: Generally, no. Workers’ compensation typically covers employees, not independent contractors. However, classification as an “independent contractor” must be proper under South Carolina’s four-factor test. Misclassification may result in workers’ compensation exposure. Additionally, some contractors may be considered “statutory employees” of general contractors. Consult the South Carolina Workers’ Compensation Commission and legal counsel.

Wage and Hour

Q: How do I calculate overtime for remote workers who work irregular hours?

A: Overtime under federal FLSA is generally calculated based on a workweek (168-hour period). All hours worked over 40 in a workweek must be compensated at 1.5 times the regular rate for non-exempt employees. For remote workers, employers must have systems to accurately track all hours worked, including time outside regular schedules. Consult the U.S. Department of Labor or legal counsel for guidance on time tracking and overtime calculation.

Q: Do I have to pay employees for time spent answering emails after hours?

A: It depends on whether the employee is non-exempt or exempt, and whether the time is considered compensable work time. For non-exempt employees, time spent performing work duties (including answering work emails) is generally compensable. The amount and nature of after-hours communications may affect analysis. For exempt employees meeting all exemption requirements, after-hours work may not require additional compensation. This is a complex area; consult wage-hour counsel.

Discrimination

Q: What should I do if I believe I’ve experienced discrimination at work?

A: If you believe you have experienced discrimination, you may file a charge of discrimination with the South Carolina Human Affairs Commission (for state law claims) or the U.S. Equal Employment Opportunity Commission (for federal law claims). Generally, charges must be filed within 180 days of the discriminatory act (or 300 days if filed with both state and federal agencies). Contact SCHAC at (803) 737-7800 or EEOC at 1-800-669-4000 for information about filing a charge. Consider consulting an employment attorney for advice specific to your situation.

Q: Does South Carolina law protect LGBTQ+ workers from discrimination?

A: As of December 2025, South Carolina’s Human Affairs Law does not explicitly include sexual orientation or gender identity as protected characteristics. However, federal law may provide protections in some contexts. The U.S. Supreme Court’s decision in Bostock v. Clayton County (2020) held that Title VII’s prohibition on sex discrimination includes discrimination based on sexual orientation and gender identity. Consult EEOC or legal counsel for specific situations.

Tax and Withholding

Q: Do I need to withhold South Carolina income tax for remote workers?

A: Generally, withholding is based on where work is physically performed. If an employee performs work from a location in South Carolina, South Carolina withholding may be required. The employee’s residence and employer’s location may also be relevant. Multi-state withholding can be complex. Consult the South Carolina Department of Revenue at (803) 898-5000 or a tax professional for specific withholding obligations.

Q: Will having remote employees in South Carolina create tax nexus for my out-of-state business?

A: Potentially, yes. A remote employee working from South Carolina may create “nexus” (taxable connection) with South Carolina, potentially triggering corporate income tax, sales tax collection, or other obligations. Nexus analysis is highly fact-specific and varies by tax type. Consult tax professionals regarding potential nexus implications before establishing remote work arrangements.

Getting Help

Q: Where can I get help understanding my rights and obligations?

A: For general questions:

  • South Carolina Department of Labor, Licensing and Regulation: (803) 896-4300
  • U.S. Department of Labor: 1-866-4-USWAGE (1-866-487-9243)

For specific legal advice: Consult a licensed attorney in South Carolina For tax advice: Consult a CPA, enrolled agent, or tax attorney For HR guidance: Consult licensed HR professional or consultant

Different questions may require different professionals. The agencies listed in the Resources section of this guide can provide general information and direct you to appropriate resources.

Others

North Carolina
Georgia
Tennessee
Florida
Virginia

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.