🇺🇸 South Carolina Minimum Wage — 2026 UPDATE

South Carolina Minimum Wage 2026

⚠️Informational only — not legal or tax advice.

Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of South Carolina, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter

Minimum Wage in South Carolina 2026

Table of Contents

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Introduction

The minimum wage in South Carolina is determined by federal law. South Carolina does not have its own state minimum wage statute, and employers covered by the Fair Labor Standards Act (FLSA) must pay at least the federal minimum wage of $7.25 per hour. This federal rate has remained unchanged since July 24, 2009.

Minimum wage enforcement in South Carolina operates under federal requirements, with the South Carolina Department of Labor, Licensing and Regulation handling certain wage payment issues under state law while minimum wage matters fall under the jurisdiction of the U.S. Department of Labor. South Carolina law prohibits cities and counties from establishing minimum wage rates that exceed the federal minimum.

This page provides an authoritative overview of minimum wage requirements applicable to South Carolina employers in 2026, including current rates, tipped employee provisions, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.

South Carolina Minimum Wage — 2026 Quick Reference
Category Rate Effective Date Official Source
State minimum wage Federal rate applies — S.C. Code § 6-1-130
Federal minimum wage $7.25/hour July 24, 2009 29 U.S.C. § 206
Tipped minimum wage $2.13/hour July 24, 2009 FLSA § 203(m)
Tip credit allowed Yes (up to $5.12) — Federal law
Next scheduled increase None N/A Federal law
Rate adjustment mechanism Federal adoption — S.C. Code § 6-1-130
Local minimum wages Prohibited — S.C. Code § 6-1-130

Last verified: February 04, 2026 via U.S. Department of Labor and South Carolina Legislature

Overview of Minimum Wage Law in South Carolina

South Carolina does not have a state-specific minimum wage law. Under South Carolina Code § 6-1-130, political subdivisions of the state, including counties and municipalities, are prohibited from establishing minimum wage rates that exceed the federal minimum wage rate set forth in Section 6 of the Fair Labor Standards Act. The South Carolina Department of Labor, Licensing and Regulation administers state wage payment laws but does not have authority over minimum wage rates, which remain under federal jurisdiction.

Relationship to Federal Law

Under the Fair Labor Standards Act, the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. South Carolina adopts the federal minimum wage rate by reference, requiring employers covered by the FLSA to pay at least $7.25 per hour. For questions concerning minimum wage, rest breaks, or overtime, South Carolina directs employers and employees to contact the United States Department of Labor at (803) 765-5981 or consult federal resources.

Coverage Scope

South Carolina minimum wage requirements apply to all employers and employees covered by the federal Fair Labor Standards Act. This includes employers engaged in interstate commerce or with annual gross sales exceeding $500,000. Employers not subject to federal minimum wage requirements under the FLSA are also not subject to a state minimum wage requirement, as South Carolina has not enacted its own minimum wage statute.

Higher Rate Principle

The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. Because South Carolina has no state minimum wage and prohibits local minimum wage ordinances, employers in South Carolina must comply with the federal minimum wage of $7.25 per hour for all covered employees.

Current Minimum Wage Rates in South Carolina 2026

Standard Hourly Minimum Wage

As of February 2026, South Carolina employers covered by the Fair Labor Standards Act must pay at least $7.25 per hour for all hours worked. This federal rate applies uniformly across South Carolina, as the state has not enacted its own minimum wage statute. The $7.25 federal minimum wage has remained unchanged since July 24, 2009.

No automatic annual adjustments are scheduled for the federal minimum wage. Any future changes to the rate would require new legislation enacted by the United States Congress.

Scheduled Increases

No minimum wage increases are currently scheduled in South Carolina. The minimum wage will remain at the federal rate of $7.25 per hour unless modified by future federal legislation or unless South Carolina enacts its own state minimum wage law.

Multiple legislative proposals to establish a state minimum wage in South Carolina have been introduced over the years, including bills proposing rates ranging from $10.10 to $17.00 per hour with various implementation schedules and Consumer Price Index adjustments. However, none of these proposals have been enacted into law. South Carolina continues to apply the federal minimum wage rate exclusively.

Minimum Wage for Tipped Employees

Tipped Employee Cash Wage

South Carolina applies federal tipped employee regulations under the Fair Labor Standards Act. Employers may pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage.

Cash wage requirement: $2.13 per hour
Maximum tip credit: $5.12 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)

Who Qualifies as a Tipped Employee

Under federal law, a “tipped employee” is defined as an employee who customarily and regularly receives more than $30 per month in tips. Qualifying occupations typically include:

  • Restaurant servers and bartenders
  • Hotel and casino service workers
  • Parking attendants and valets
  • Delivery drivers who receive tips
  • Hair stylists and barbers who receive tips
  • Tour guides and bellhops

Employer Obligations for Tipped Workers

Employers who claim a tip credit must:

  1. Inform employees in writing of the tip credit provisions before claiming the credit
  2. Ensure total compensation (cash wage plus tips) equals or exceeds the full minimum wage for all hours worked
  3. Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage
  4. Maintain accurate records of employee tips and hours worked
  5. Permit employees to retain all tips except in valid tip pooling arrangements

Tip Pooling and Sharing

The Fair Labor Standards Act permits mandatory tip pooling among employees who customarily and regularly receive tips. Under federal regulations:

  • Tip pools must include only customarily tipped employees such as servers, bartenders, and bussers
  • Managers and supervisors cannot participate in tip pools or retain any portion of employee tips
  • Employers cannot keep any portion of tips for themselves or for the business
  • Credit card processing fees cannot be deducted from employee tips unless the fee is actually incurred for the tip portion of the transaction

For South Carolina-specific wage payment issues, employers and employees may contact the Office of Wages and Child Labor at (803) 896-7756. For federal minimum wage and tip credit questions, contact the U.S. Department of Labor Wage and Hour Division at 1-866-4US-WAGE (487-9243).

Local Minimum Wage Ordinances in South Carolina

South Carolina law explicitly prohibits cities and counties from enacting their own minimum wage rates that differ from the federal minimum wage. Under South Carolina Code § 6-1-130(B), a political subdivision of the state may not establish, mandate, or otherwise require a minimum wage rate that exceeds the federal minimum wage rate set forth in Section 6 of the Fair Labor Standards Act.

This preemption provision, enacted in 2002, prevents municipalities and counties from establishing higher minimum wages or imposing additional wage requirements beyond federal law. The statute defines “political subdivision” to include municipalities, counties, school districts, special purpose districts, and public service districts.

All employers in South Carolina must comply with the uniform federal rate of $7.25 per hour. No cities or counties in South Carolina have authority to establish different minimum wage rates.

The preemption statute does not limit the authority of political subdivisions to establish wage rates in contracts to which they are a party. Governments may negotiate higher wages in procurement contracts or other contractual arrangements while remaining prohibited from imposing general minimum wage mandates on private employers.

Who Is Covered and Who Is Exempt

Employees Covered by Federal Minimum Wage

The federal Fair Labor Standards Act covers most employees in South Carolina. Unless specifically exempted, covered employees include:

  • Private sector workers: Full-time and part-time employees of private businesses engaged in interstate commerce or with annual gross sales exceeding $500,000
  • Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for executive, administrative, or professional exemptions
  • Hourly employees: Workers compensated on an hourly basis
  • Temporary and seasonal workers: Covered if they work for a covered employer
  • Minor employees: Workers under age 18 are generally covered, though youth minimum wage provisions may apply in limited circumstances

Common Exemptions from Minimum Wage Requirements

The following categories of employees may be exempt from federal minimum wage requirements:

Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests. For 2026, the federal salary threshold for exempt status is $844 per week ($43,888 annually) for the standard threshold, with certain exemptions requiring higher thresholds.

Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location may be exempt from minimum wage requirements.

Agricultural Workers
Certain agricultural employees are exempt from minimum wage requirements under Section 13(a)(6) of the FLSA, including employees employed by operations using fewer than 500 man-days of agricultural labor in any calendar quarter of the preceding calendar year.

Student Workers
The FLSA permits full-time students working at qualifying institutions to be paid 85% of the federal minimum wage (currently $6.16 per hour), subject to restrictions on hours worked and proper certification from the U.S. Department of Labor.

Learners and Apprentices
The FLSA permits employers to pay learners at subminimum wage rates during specific training periods, provided the employer obtains a certificate from the U.S. Department of Labor authorizing such wages.

Workers with Disabilities
Section 14(c) of the FLSA permits employers to obtain special certificates allowing payment of subminimum wages to workers whose productive capacity is impaired by disability. The U.S. Department of Labor has significantly restricted this practice in recent years.

Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. The U.S. Department of Labor and South Carolina authorities apply economic reality tests to determine whether a worker is properly classified as an independent contractor. Misclassification may result in penalties and back wages.

Small Enterprise Exemptions
Enterprises not engaged in interstate commerce with annual gross sales below $500,000 are not covered by the FLSA. However, individual employees may still be covered if they personally engage in interstate commerce activities.

Employer Obligations and Enforcement

Employer Compliance Obligations

Employers subject to federal minimum wage law must:

  1. Pay the applicable minimum wage for all hours worked
  2. Maintain accurate payroll records documenting hours worked and wages paid for at least three years
  3. Display required federal posters informing employees of minimum wage rates
  4. Issue compliant wage statements showing gross wages, deductions, and net pay
  5. Provide notice of wage rates to employees

Recordkeeping Requirements: Employers must maintain payroll records for three years, including:

  • Employee names, addresses, and Social Security numbers
  • Hours worked each workday and workweek
  • Wage rates and total wages paid each pay period
  • Deductions from wages
  • Date of payment and pay period covered

State Wage Payment Requirements

While minimum wage enforcement falls under federal jurisdiction, South Carolina has specific wage payment requirements under South Carolina Code Title 41, Chapter 10. Employers must:

  • Pay employees at least once per month
  • Pay all wages due within 48 hours of separation or by the next regular payday, not to exceed 30 days
  • Provide written notice of wage rate changes to employees with 5 or more workers at least seven calendar days before the change

Violations of South Carolina’s wage payment law may result in civil penalties and treble damages. Employees may file complaints with the South Carolina Department of Labor, Licensing and Regulation.

Enforcement of Minimum Wage Law

The U.S. Department of Labor Wage and Hour Division enforces federal minimum wage requirements in South Carolina. The agency:

  • Investigates wage complaints filed by employees
  • Conducts routine compliance inspections
  • Issues citations and orders for wage violations
  • Collects unpaid wages and penalties on behalf of employees
  • Refers cases for criminal prosecution when appropriate

Filing a Federal Minimum Wage Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the U.S. Department of Labor through:

Filing a State Wage Payment Complaint: For issues related to payment of wages (but not minimum wage rates), employees may file a complaint with the South Carolina Department of Labor, Licensing and Regulation through:

  • Online: Wage complaint form at llr.sc.gov
  • Phone: (803) 896-7756
  • Mail: P.O. Box 11329, Columbia, SC 29211-1329
  • Fax: (803) 896-7680

Federal law prohibits retaliation against employees who file wage complaints or cooperate with investigations.

Penalties for Minimum Wage Violations

Employers who violate federal minimum wage law may be subject to:

Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked, typically going back two years from the date of complaint (or three years for willful violations).

Liquidated Damages: Federal law authorizes liquidated damages equal to the amount of unpaid wages, effectively doubling the back wage liability unless the employer demonstrates good faith and reasonable grounds for believing they were in compliance.

Civil Money Penalties: The U.S. Department of Labor may assess civil money penalties of up to $2,074 per violation for repeat or willful violations of minimum wage requirements. Enhanced penalties of up to $15,138 per violation may apply for violations involving minors.

Criminal Penalties: Willful violations of minimum wage law may constitute a federal crime punishable by fines of up to $10,000 and/or imprisonment. Second convictions may result in imprisonment.

Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation.

South Carolina Minimum Wage vs Federal Law

The Federal Minimum Wage Floor

The Fair Labor Standards Act establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.

When Federal Law Applies

Because South Carolina has not enacted its own state minimum wage law, all employees working in South Carolina are subject to the federal minimum wage of $7.25 per hour if their employer is covered by the FLSA. The federal minimum serves as both the floor and the ceiling for minimum wage requirements in South Carolina.

Higher Applicable Rate Rule

The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. In South Carolina, this analysis is simplified because:

  1. South Carolina has no state minimum wage statute
  2. South Carolina prohibits local minimum wage ordinances
  3. The federal minimum wage of $7.25 per hour applies uniformly to all covered employers

Practical Application:
Employers in South Carolina need only ensure compliance with the federal minimum wage of $7.25 per hour for all covered, non-exempt employees. No additional state or local wage requirements apply.

Minimum Wage Posting Requirements

South Carolina employers must display workplace notices informing employees of their rights under federal and state labor laws. While South Carolina does not require a state-specific minimum wage poster, federal posting requirements apply.

Federal Requirements:
Employers covered by the Fair Labor Standards Act must display the federal minimum wage poster, which includes current wage rates and employee rights. The poster is available from:

South Carolina Labor Law Abstract:
South Carolina requires employers to display the South Carolina Labor Law Abstract which covers:

  • Payment of wages requirements
  • Child labor provisions
  • Right-to-work information

Where to obtain posters:

  • Download from South Carolina Department of Labor, Licensing and Regulation: https://llr.sc.gov/wage/posters.aspx
  • Contact: Office of Wages and Child Labor at (803) 896-7756
  • Available free of charge directly from the agency

Posting locations: Required notices must be posted in each workplace location where employees can readily see them, typically near time clocks, in break rooms, or at other prominent locations accessible to all employees.

Compliance: Failure to display required posters may result in citations and penalties from federal or state enforcement agencies. Employers must update posters when minimum wage rates or other requirements change.

Frequently Asked Questions: Minimum Wage in South Carolina 2026

What is the minimum wage in South Carolina in 2026?

The minimum wage in South Carolina is $7.25 per hour, which is the federal minimum wage rate. South Carolina does not have its own state minimum wage law, so the federal rate applies to all covered employers.

When is the next minimum wage increase in South Carolina?

No minimum wage increases are currently scheduled in South Carolina. The rate will remain $7.25 per hour unless changed by future federal legislation or unless South Carolina enacts its own state minimum wage law.

Does South Carolina allow tip credit?

Yes, South Carolina applies federal tip credit rules. Employers may pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided total compensation reaches $7.25 per hour. Employers must inform employees of tip credit provisions before claiming the credit.

Are there different minimum wages in different cities in South Carolina?

No, South Carolina law prohibits cities and counties from establishing minimum wage rates that differ from the federal minimum wage. The $7.25 federal rate applies uniformly across all jurisdictions in South Carolina.

Who is exempt from minimum wage in South Carolina?

Common exemptions from federal minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, certain agricultural workers, and properly classified independent contractors. Small enterprises not engaged in interstate commerce with annual gross sales below $500,000 may also be exempt.

What happens if an employer pays below minimum wage in South Carolina?

Employers who pay below the federal minimum wage face back wage liability, liquidated damages equal to the unpaid amount, civil money penalties up to $2,074 per violation (higher for violations involving minors), and potential criminal prosecution. Employees can file complaints with the U.S. Department of Labor Wage and Hour Division to recover unpaid wages. Federal law prohibits retaliation against workers who report violations.

Do small businesses have to pay minimum wage in South Carolina?

Most small businesses must pay the federal minimum wage of $7.25 per hour. Employers covered by the Fair Labor Standards Act include those engaged in interstate commerce or with annual gross sales exceeding $500,000. Even if a business is not covered as an enterprise, individual employees may be covered if they personally engage in interstate commerce.

Is South Carolina’s minimum wage higher than the federal minimum?

No, South Carolina does not have its own state minimum wage. The state applies the federal minimum wage of $7.25 per hour. The state and federal requirements are identical for covered employers.

How often does South Carolina increase its minimum wage?

South Carolina has not enacted its own minimum wage law and therefore does not have a mechanism for regular increases. The state applies the federal minimum wage, which has remained $7.25 per hour since July 24, 2009. Any future increases would require action by the U.S. Congress or enactment of a state minimum wage law by the South Carolina legislature.

Can employers pay less than minimum wage during training?

Federal law permits certain training wage programs, but employers must obtain certification from the U.S. Department of Labor before paying subminimum wages to learners or apprentices. South Carolina does not have a separate state training wage provision. Most employees must be paid at least $7.25 per hour from their first hour of employment.

How to file a minimum wage complaint in South Carolina

Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the U.S. Department of Labor Wage and Hour Division. Filing methods include:

  • Online portal: https://www.dol.gov/agencies/whd/contact/complaints
  • Phone: 1-866-4US-WAGE (487-9243)
  • In-person: Wage and Hour Division, Columbia Area Office, 1835 Assembly Street, Room 838, Columbia, SC 29201
  • Mail: Address complaints to the Columbia Area Office

The U.S. Department of Labor will investigate the complaint and may recover unpaid wages on behalf of the employee. Federal law prohibits employer retaliation against workers who file wage complaints or participate in investigations.

For state wage payment issues (not minimum wage rates), contact the South Carolina Department of Labor, Licensing and Regulation at (803) 896-7756.

Do remote workers in South Carolina get the South Carolina minimum wage?

Remote workers physically located in South Carolina are generally entitled to at least the federal minimum wage of $7.25 per hour that applies in South Carolina, even if their employer is based in another state. The minimum wage of the jurisdiction where the employee physically performs work typically applies. If the employer’s state has a higher minimum wage, that rate may apply depending on the employer’s policies and state law.

Information Verification Log

All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.

Information Verification Log
Source Last Verified Full URL
U.S. Department of Labor – State Minimum Wage Laws February 04, 2026 https://www.dol.gov/agencies/whd/minimum-wage/state
South Carolina Code § 6-1-130 (Local Minimum Wage Preemption) February 04, 2026 https://www.scstatehouse.gov/code/t06c001.php
South Carolina Code Title 41, Chapter 10 (Payment of Wages) February 04, 2026 https://www.scstatehouse.gov/code/t41c010.php
SC Department of Labor, Licensing and Regulation (LLR) February 04, 2026 https://llr.sc.gov/wage/
Fair Labor Standards Act (FLSA) February 04, 2026 https://www.dol.gov/agencies/whd/flsa
SC LLR Required Labor Posters February 04, 2026 https://llr.sc.gov/wage/posters.aspx
SC LLR Wage Complaint Forms February 04, 2026 https://llr.sc.gov/wage/formswages.aspx

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