{"id":139561,"date":"2024-08-22T17:03:10","date_gmt":"2024-08-22T15:03:10","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=139561"},"modified":"2025-01-08T22:04:35","modified_gmt":"2025-01-08T20:04:35","slug":"outh-carolina-minimum-wage","status":"publish","type":"post","link":"https:\/\/preproduction.factorialhr.com\/blog\/outh-carolina-minimum-wage\/","title":{"rendered":"Guide to the South Carolina Minimum Wage"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">South Carolina follows <\/span><b>at-will employment <\/b><span style=\"font-weight: 400;\">and <\/span><b>right-to-work laws<\/b><span style=\"font-weight: 400;\">, and while it defaults to <\/span><b>federal regulations<\/b><span style=\"font-weight: 400;\"> for minimum wages, overtime pay, and tipped employees, there is a growing push to <\/span><b>increase the South Carolina minimum wage beyond the federal level<\/b><span style=\"font-weight: 400;\">. This movement is fueled by concerns that the current federal minimum wage<\/span><span style=\"font-weight: 400;\">, which has not increased since <\/span><b>2009<\/b><span style=\"font-weight: 400;\">, is insufficient to meet the <\/span><b>rising cost of living<\/b><span style=\"font-weight: 400;\"> in many parts of the state.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, what is the <\/span><b>South Carolina minimum wage<\/b><span style=\"font-weight: 400;\">, and can we expect to see an <\/span><b>increase <\/b><span style=\"font-weight: 400;\">any time soon? What other <\/span><b>wage laws<\/b><span style=\"font-weight: 400;\"> do South Carolina employers need to take into account when they pay their workers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In today\u2019s post, we will explore <\/span><b>everything you need to know<\/b> about the<b> South Carolina minimum wage<\/b><span style=\"font-weight: 400;\"> to help you <\/span>maintain <b>compliance<\/b><span style=\"font-weight: 400;\"> and support <\/span><b>fair labor practices <\/b><span style=\"font-weight: 400;\">within your organization<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#U.S.\">Minimum Wage in the U.S.<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Timeline\">Federal Minimum Wage: Timeline<\/a>\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#What\">What Is the Current South Carolina Minimum Wage?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Exempt\">Are Any Workers Exempt from the South Carolina Minimum Wage?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Up\">Will the South Carolina Minimum Wage Go Up?<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Laws\">Additional South Carolina Wage Laws<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Compliance\">Best Practices for Wage Law Compliance<\/a>\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/factorialhr.com\/payroll\"><span style=\"font-weight: 400;\">Centralize your payroll management processes and get ahead<\/span><\/a>\ud83d\ude80<\/li>\n<\/ul>\n<p><a href=\"https:\/\/factorialhr.co.uk\/request-demo\"><img decoding=\"async\" class=\"aligncenter wp-image-130408 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg\" alt=\"factorial hr software demo\" width=\"868\" height=\"298\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-768x263.jpg 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value.jpg 800w\" sizes=\"(max-width: 868px) 100vw, 868px\" \/><\/a><\/p>\n<h2><b><a name=\"U.S.\"><\/a>Minimum Wage in the U.S.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The minimum wage in the United States is an important part of the economy, setting the <\/span><b>lowest amount that workers can be paid for their work<\/b><span style=\"font-weight: 400;\">. It helps ensure that employees earn a <\/span><b>basic level of income<\/b><span style=\"font-weight: 400;\">. However, the minimum wage is <\/span><b>not the same everywhere<\/b><span style=\"font-weight: 400;\">; it varies depending on<\/span><b> federal, state, and local laws<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at <\/span><b>how the minimum wage works at these different levels<\/b><span style=\"font-weight: 400;\">, starting with the <\/span><b>nationwide federal rate<\/b><span style=\"font-weight: 400;\">, then looking at the rules in different <\/span><b>states<\/b><span style=\"font-weight: 400;\">, and finally exploring how some<\/span><b> cities and towns<\/b><span style=\"font-weight: 400;\"> set their own minimum wages to <\/span><b>meet local needs<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Federal Minimum Wage<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As the <\/span><b>baseline<\/b><span style=\"font-weight: 400;\">, the <\/span><b>federal minimum wage<\/b><span style=\"font-weight: 400;\"> is the <\/span><b>lowest hourly rate employers in the U.S. can legally pay their employees<\/b><span style=\"font-weight: 400;\">. It is set by the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/fair-labor-standards-act\/\"><span style=\"font-weight: 400;\">Fair Labor Standards Act<\/span><\/a><span style=\"font-weight: 400;\"> (<\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FLSA<\/span><\/a><span style=\"font-weight: 400;\">) and was <\/span><b>last raised in 2009 to $7.25 per hour<\/b><span style=\"font-weight: 400;\">. This rate, which ensures that employers comply with a <\/span><b>basic level of compensation <\/b><span style=\"font-weight: 400;\">regardless of their <\/span><b>location or industry<\/b><span style=\"font-weight: 400;\">, is <\/span><b>significantly lower than the <\/b><a href=\"https:\/\/www.bls.gov\/news.release\/empsit.t19.htm\" target=\"_blank\" rel=\"noopener\"><b>median hourly wage<\/b><\/a><span style=\"font-weight: 400;\"> of all workers in the United States ($35.00 per hour).\u00a0<\/span><\/p>\n<h3><b>State Minimum Wages<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Recognizing <\/span><b>regional variations in local economies and the cost of living<\/b><span style=\"font-weight: 400;\">, there are now many <\/span><b>state minimum wage laws<\/b><span style=\"font-weight: 400;\"> that set the threshold <\/span><b>higher than the federal rate<\/b><span style=\"font-weight: 400;\">. These state-level mandates ensure that workers in higher-cost areas receive a <\/span><b>wage that reflects their cost of living<\/b><span style=\"font-weight: 400;\">. For example, the minimum wage is <\/span><b>$12.00 per hour<\/b><span style=\"font-weight: 400;\"> in <\/span><a href=\"https:\/\/factorialhr.com\/blog\/new-mexico-minimum-wage\/\"><b>New Mexico<\/b><\/a><span style=\"font-weight: 400;\">, <\/span><b>$15.00 per hour<\/b><span style=\"font-weight: 400;\"> in <\/span><a href=\"https:\/\/factorialhr.com\/blog\/maryland-minimum-wage\/\"><b>Maryland<\/b><\/a><span style=\"font-weight: 400;\">, and <\/span><b>$16.66 per hour <\/b><span style=\"font-weight: 400;\">in <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employment-laws-in-washington-state\/#Wage\"><b>Washington State<\/b><\/a><span style=\"font-weight: 400;\"> (the <\/span><b>highest rate<\/b><span style=\"font-weight: 400;\"> amongst all states).\u00a0<\/span><\/p>\n<h3><b>Municipal Minimum Wages<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To further address <\/span><b>regional economic environments<\/b><span style=\"font-weight: 400;\">, some cities and counties have implemented <\/span><b>local minimum wage mandates <\/b><span style=\"font-weight: 400;\">that are <\/span><b>higher than both federal and state rates<\/b><span style=\"font-weight: 400;\">. This approach ensures that workers in urban centers (where the cost of living is often higher) receive a wage that <\/span><b>reflects their specific environment<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, in addition to regional differences, the minimum wage can also <\/span><b>vary based on industry<\/b><span style=\"font-weight: 400;\">. For example, the <\/span><b>minimum wage for tipped employees in the service industry<\/b><span style=\"font-weight: 400;\"> is typically <\/span><b>lower than the minimum wage for non-tipped workers<\/b><span style=\"font-weight: 400;\">. This is because many states expect tipped employees to receive a significant portion of their income from <\/span><b>tips<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b><a name=\"Timeline\"><\/a>Federal Minimum Wage: Timeline <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before we explore the South Carolina minimum wage, let\u2019s take a look at a <\/span><b>timeline of the federal minimum wage<\/b><span style=\"font-weight: 400;\"> to help us understand its evolution and<\/span><b> impact on the state\u2019s wage laws<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><b>Key milestones in the history of the federal minimum wage:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1938<\/b><span style=\"font-weight: 400;\">. The FLSA establishes the first federal minimum wage of $0.25 per hour. This provides workers with a baseline income and lays the groundwork for future labor standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1950<\/b><span style=\"font-weight: 400;\">. The federal minimum wage increases to $0.75 per hour, expanding coverage to air transport industry workers. This increase is a reflection of post-war economic growth and an improvement in living standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1966<\/b><span style=\"font-weight: 400;\">. The federal minimum wage increases to $1.40 per hour. This increase ensures wages keep up with productivity and the cost of living, reducing poverty significantly. Coverage is extended to public schools, nursing homes, laundries, and the construction industry<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1981<\/b><span style=\"font-weight: 400;\">. The federal minimum increases to $3.35 per hour and remains unchanged for almost a decade. This wage stagnation leads to an increase in income inequality.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1989<\/b><span style=\"font-weight: 400;\">. Changes to the law require businesses that make $500,000 or more per year to follow minimum wage rules, and the federal minimum wage is increased to $3.80 per hour\u200b.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1997<\/b><span style=\"font-weight: 400;\">. The federal minimum wage increases to $5.15 per hour during the Clinton administration. This raise is part of a series of increases aimed at boosting the income of low-wage workers. However, even though it provides a significant boost in nominal wages, it still lags behind inflation and cost of living increases.\u200b\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2007-2009<\/b><span style=\"font-weight: 400;\">. The federal minimum wage increases in three stages to $7.25 per hour, where it has remained until now despite rising living costs. This is the longest period in U.S. history without an increase. There are currently no plans to increase the federal minimum wage.<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"What\"><\/a>What Is the Current South Carolina Minimum Wage?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><b>South Carolina minimum wage<\/b><span style=\"font-weight: 400;\"> is currently <\/span><b>$7.25 per hour<\/b><span style=\"font-weight: 400;\">, in line with the <\/span><b>federal minimum wage<\/b><span style=\"font-weight: 400;\">. Twenty states use the federal minimum wage of $7.25 including <\/span><a href=\"https:\/\/factorialhr.com\/blog\/alabama-minimum-wage\/\"><span style=\"font-weight: 400;\">Alabama<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/georgia-minimum-wage\/\"><span style=\"font-weight: 400;\">Georgia<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/indiana-minimum-wage\/\"><span style=\"font-weight: 400;\">Indiana<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/kentucky-state-labor-laws\/\"><span style=\"font-weight: 400;\">Kentucky<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/louisiana-minimum-wage\/\"><span style=\"font-weight: 400;\">Louisiana<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/minimum-wage-in-north-carolina\/\"><span style=\"font-weight: 400;\">North Carolina<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pennsylvania-minimum-wage\/\"><span style=\"font-weight: 400;\">Pennsylvania<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/tennessee-minimum-wage\/\"><span style=\"font-weight: 400;\">Tennessee<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/labor-laws-in-the-state-of-texas\/\"><span style=\"font-weight: 400;\">Texas<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/wisconsin-minimum-wage\/\"><span style=\"font-weight: 400;\">Wisconsin<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/oklahoma-minimum-wage\/\"><span style=\"font-weight: 400;\">Oklahoma<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/utah-minimum-wage-employers-guide\/\"><span style=\"font-weight: 400;\">Utah<\/span><\/a><span style=\"font-weight: 400;\">. 30 states have state minimum wages that are<\/span><b> above the federal minimum wage<\/b><span style=\"font-weight: 400;\">, including <\/span><a href=\"https:\/\/factorialhr.com\/blog\/california-minimum-wage\/\"><span style=\"font-weight: 400;\">California<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/factorialhr.com\/blog\/florida-minimum-wage\/\"><span style=\"font-weight: 400;\">Florida<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/massachusetts-minimum-wage\/\"><span style=\"font-weight: 400;\">Massachusetts<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The South Carolina minimum wage applies to most workers in the state unless they are <\/span><b>exempt <\/b><span style=\"font-weight: 400;\">under specific <\/span><b>federal or state laws<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, South Carolina employers must offer the following <\/span><b>minimum hourly wage<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>$7.25 per hour<\/b><span style=\"font-weight: 400;\">. This is the federal minimum wage, and it applies to most workers in South Carolina. This rate has been in effect since July 24, 2009.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>$2.13 per hour<\/b><span style=\"font-weight: 400;\">. This rate typically applies to workers who earn tips, such as servers. Under federal law, employers can pay tipped employees a lower cash wage as long as the sum of the cash wage and tips received is at least equal to the federal minimum wage of $7.25 per hour. If the combined amount of the tips and the $2.13 cash wage does not equal at least $7.25 per hour, the employer must make up the difference.<\/span><\/li>\n<\/ul>\n<p>Finally, there are <strong>no municipal minimum wage ordinances<\/strong> in South Carolina.<\/p>\n<h2><b><a name=\"Exempt\"><\/a>Are Any Workers Exempt from the South Carolina Minimum Wage?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Since South Carolina does not have a state-specific minimum wage and <\/span><b>follows the federal minimum wage of $7.25 per hour<\/b><span style=\"font-weight: 400;\">, the <\/span><b>exemptions <\/b><span style=\"font-weight: 400;\">to the South Carolina minimum wage are essentially the same as <\/span><b>those outlined under federal law<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s an <\/span><b>overview <\/b><span style=\"font-weight: 400;\">of these exemptions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tipped employees<\/b><span style=\"font-weight: 400;\">. Firstly, you can pay tipped employees a reduced rate of $2.13 per hour if their tips bring their total earnings to at least $7.25 per hour. If they don\u2019t, then you must cover the tip deficit.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Student workers<\/b><span style=\"font-weight: 400;\">. Secondly, you can pay full-time college or high school students 85% of the South Carolina minimum wage, provided those students are enrolled in a work-study program or work 20 hours (or less) per week.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Young workers<\/b><span style=\"font-weight: 400;\">. In addition, you can pay employees under 20 a reduced rate of $4.25 per hour during the first 90 days of employment. After 90 days, you must pay them the full South Carolina minimum wage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employees with disabilities<\/b><span style=\"font-weight: 400;\">. You can pay employees with a disability a lower rate provided you obtain a certificate from the U.S. Department of Labor. This special permission allows employers to pay wages based on the productivity of the worker, which might be less than the South Carolina minimum wage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Agricultural workers<\/b><span style=\"font-weight: 400;\">. Agricultural workers are exempt from the South Carolina minimum wage provisions if they are employed by smaller farms that are not subject to the FLSA.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Casual babysitters and companions for the elderly<\/b><span style=\"font-weight: 400;\">. Finally, individuals employed as casual babysitters or companions to the elderly or infirm are exempt from South Carolina minimum wage requirements.<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"Up\"><\/a>Will the South Carolina Minimum Wage Go Up?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As of 2024, there is <\/span><b>growing momentum<\/b><span style=\"font-weight: 400;\"> to <\/span><b>raise the minimum wage<\/b><span style=\"font-weight: 400;\"> in the state, but whether it will actually increase remains <\/span><b>uncertain<\/b><span style=\"font-weight: 400;\">. Several <\/span><b>legislative proposals<\/b><span style=\"font-weight: 400;\"> have been introduced in the <\/span><b>South Carolina General Assembly<\/b><span style=\"font-weight: 400;\"> aimed at <\/span><b>raising the South Carolina minimum wage above the federal level of $7.25 per hour<\/b><span style=\"font-weight: 400;\">. For instance, the <\/span><a href=\"https:\/\/www.scstatehouse.gov\/sess125_2023-2024\/bills\/216.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">South Carolina Minimum Wage Act<\/span><\/a><span style=\"font-weight: 400;\"> proposes setting a state minimum wage at <\/span><b>two dollars above the federal rate<\/b><span style=\"font-weight: 400;\">, with future increases tied to inflation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition to legislative efforts, a <\/span><b>statewide advisory referendum<\/b><span style=\"font-weight: 400;\"> is scheduled to take place during the <\/span><b>2024 General Election<\/b><span style=\"font-weight: 400;\">. This referendum will allow voters to express their opinion on whether the state\u2019s minimum wage <\/span><b>should be raised to<\/b> <b>$15 per hour<\/b><span style=\"font-weight: 400;\">. While the referendum itself will not directly change the law, it could <\/span><b>influence future legislative actions<\/b><span style=\"font-weight: 400;\"> if there is significant public support for an increase\u200b.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, labor organizations, such as the <\/span><a href=\"https:\/\/scaflcio.org\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">South Carolina AFL-CIO<\/span><\/a><span style=\"font-weight: 400;\">, continue to advocate strongly for an increase, arguing that the current wage is <\/span><b>insufficient for workers to meet their basic needs<\/b><span style=\"font-weight: 400;\">, particularly in higher-cost areas like <\/span><b>Charleston, Columbia, and Greenville<\/b><span style=\"font-weight: 400;\">. Despite this advocacy, past efforts to raise the minimum wage have faced <\/span><b>significant challenges<\/b><span style=\"font-weight: 400;\">, often stalling in legislative committees\u200b.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, while there is <\/span><b>active discussion<\/b><span style=\"font-weight: 400;\"> and some <\/span><b>legislative movement <\/b><span style=\"font-weight: 400;\">towards <\/span><b>increasing the South Carolina minimum wage<\/b><span style=\"font-weight: 400;\">, it is unclear if or when these efforts will result in a concrete change. The outcome of the 2024 advisory referendum and the actions of the state legislature following it will be <\/span><b>key indicators of the future direction of minimum wage laws in South Carolina<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b><a name=\"Laws\"><\/a>Additional South Carolina Wage Laws<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Aside from the South Carolina minimum wage, the state has a number of <\/span><b>additional wage laws<\/b><span style=\"font-weight: 400;\"> that employers need to understand as these can have an<\/span><b> impact<\/b><span style=\"font-weight: 400;\"> on an <\/span><b>employee\u2019s wages<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s explore these <\/span><b>additional South Carolina wage laws<\/b><span style=\"font-weight: 400;\"> in a bit more detail so you can make sure your <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-handbook\/\"><span style=\"font-weight: 400;\">employee handbook<\/span><\/a><span style=\"font-weight: 400;\"> meets all requirements<\/span><\/p>\n<h3><b>Right-to-Work Law<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">South Carolina is a <\/span><b>right-to-work state<\/b><span style=\"font-weight: 400;\">. This means that <\/span><b>employees cannot be required to join a union or pay union dues as a condition of employment<\/b><span style=\"font-weight: 400;\">. In addition, South Carolina\u2019s <\/span><a href=\"https:\/\/schac.sc.gov\/sites\/schac\/files\/Documents\/9allinoneworkplacelawsposter.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Right-to-Work Law<\/span><\/a><span style=\"font-weight: 400;\"> also <\/span><b>prevents employers and unions from entering into agreements<\/b><span style=\"font-weight: 400;\"> that would require union membership as a condition of employment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Essentially, even if a majority of workers vote to unionize, individual workers<\/span><b> cannot be forced to join the union or pay fees <\/b><span style=\"font-weight: 400;\">related to <\/span><b>collective bargaining <\/b><span style=\"font-weight: 400;\">and other <\/span><b>union activities<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>At-Will Employment<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Like most other states in the U.S., South Carolina follows the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/at-will-employment-by-state\/\"><span style=\"font-weight: 400;\">at-will employment<\/span><\/a><span style=\"font-weight: 400;\"> doctrine. This means that either the employer or employee can <\/span><b>end the employment relationship at any time and for any reason<\/b><span style=\"font-weight: 400;\"> (or no reason at all), as long as it\u2019s not illegal (for example, <\/span><b>discrimination <\/b><span style=\"font-weight: 400;\">based on race or gender, or retaliation for <\/span><b>whistleblowing<\/b><span style=\"font-weight: 400;\">).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a few <\/span><b>exceptions <\/b><span style=\"font-weight: 400;\">to at-will employment in South Carolina. This includes employees with <\/span><b>fixed-term employment contracts<\/b><span style=\"font-weight: 400;\">\u00a0and those that are <\/span><b>covered by a collective bargaining agreement<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Overtime Laws<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">South Carolina follows <\/span><a href=\"https:\/\/factorialhr.com\/blog\/new-overtime-rules-2024\/\"><span style=\"font-weight: 400;\">federal overtime pay laws<\/span><\/a><span style=\"font-weight: 400;\"> under the Fair Labor Standards Act (FLSA). This means that you must offer eligible employees <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\"> if they work <\/span><b>beyond their contracted hours<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To determine <\/span><b>if an employee is eligible or exempt<\/b><span style=\"font-weight: 400;\">, you first need to determine <\/span><b>what their FLSA status is<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>Consider the following<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Salary level<\/b><span style=\"font-weight: 400;\">. Are you paying the employee more than $43,888 per year?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Salary basis<\/b><span style=\"font-weight: 400;\">. Do you offer them a guaranteed minimum compensation amount, regardless of the hours they work?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Duties<\/b><span style=\"font-weight: 400;\">. Have you contracted them to perform an exempt job duty? (Professional duties that require specialized education; executive duties such as supervising a team; or administrative duties that require the use of discretion and judgment)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If an employee <\/span><b>meets the above criteria<\/b><span style=\"font-weight: 400;\">, then they are considered <\/span><b>exempt from the FLSA <\/b><span style=\"font-weight: 400;\">and you have <\/span><b>no obligation to pay them overtime<\/b><span style=\"font-weight: 400;\">. However, if your employees are <\/span><b>non-exempt<\/b><span style=\"font-weight: 400;\"> (they do not meet any of the above criteria) then you <\/span><b>must follow the FLSA\u2019s overtime rules<\/b><span style=\"font-weight: 400;\">. Essentially this means that you must offer them <\/span><b>overtime pay <\/b><span style=\"font-weight: 400;\">for any hours worked <\/span><b>over 40 in a workweek<\/b><span style=\"font-weight: 400;\"> at a rate not less than <\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-and-a-half\/\"><span style=\"font-weight: 400;\">time and a half<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Reporting and Recordkeeping<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Employers must comply with <\/span><b>federal laws<\/b><span style=\"font-weight: 400;\"> when it comes to <\/span><b>employment reporting and recordkeeping<\/b><span style=\"font-weight: 400;\">. These laws are designed to ensure that <\/span><b>accurate records <\/b><span style=\"font-weight: 400;\">of employee information and employment activities are maintained and filed for <\/span><b>compliance, transparency, and legal purposes<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, South Carolina employers must <\/span><b>maintain a record of the following information<\/b><span style=\"font-weight: 400;\"> for <\/span><b>at least 3 years<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employee personal information<\/b><span style=\"font-weight: 400;\">. Including name, address, Social Security number, and birth date for employees under 19. This is a requirement of the Fair Labor Standards Act (FLSA).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Wage and hour records<\/b><span style=\"font-weight: 400;\">. Accurate records of hours worked daily and weekly, wage rates, total earnings, and payment dates. These records are crucial for compliance with the FLSA, which governs minimum wage, overtime pay, and other labor standards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payroll records<\/b><span style=\"font-weight: 400;\">. Detailed payroll records, including information about deductions and any written agreements authorizing employee deductions. In addition, under the FLSA, employers must provide employees with a pay statement each period that includes hours worked, pay rates, total earnings, and deductions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Records of leave<\/b><span style=\"font-weight: 400;\">, Detailed records of leave, including paid time off (<\/span><a href=\"https:\/\/factorialhr.com\/blog\/unlimited-pto\/\"><span style=\"font-weight: 400;\">PTO<\/span><\/a><span style=\"font-weight: 400;\">), <\/span><a href=\"https:\/\/factorialhr.com\/blog\/paid-sick-leave\/\"><span style=\"font-weight: 400;\">sick leave<\/span><\/a><span style=\"font-weight: 400;\">, and vacation, in line with the requirements of the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/family-and-medical-leave-act-fmla\/\"><span style=\"font-weight: 400;\">Family and Medical Leave Act (FMLA)<\/span><\/a><span style=\"font-weight: 400;\">. South Carolina does not have any additional state-specific leave recordkeeping requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax records<\/b><span style=\"font-weight: 400;\">. Employers must maintain records of tax withholdings, W-2 and W-4 forms, and other relevant tax documentation, in compliance with IRS regulations.<\/span><\/li>\n<\/ul>\n<h3><b>Prevailing Wage Laws<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">South Carolina does not have state prevailing wage laws. This means that for public works or government contracts, the state <\/span><b>does not require contractors to pay their workers a specific wage rate that is higher than the federal minimum wage<\/b><span style=\"font-weight: 400;\"> unless federal prevailing wage laws apply (such as the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/government-contracts\/construction\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Davis-Bacon Act<\/span><\/a><span style=\"font-weight: 400;\"> for federal projects).<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/payroll\"><img decoding=\"async\" class=\"aligncenter wp-image-125685 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-300x103.png\" alt=\"payroll software\" width=\"821\" height=\"282\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-300x103.png 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-768x263.png 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner.png 900w\" sizes=\"(max-width: 821px) 100vw, 821px\" \/><\/a><\/p>\n<h2><b><a name=\"Compliance\"><\/a>Best Practices for Wage Law Compliance <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">And that\u2019s pretty much <\/span><b>everything you need to know about the South Carolina minimum wage<\/b><span style=\"font-weight: 400;\"> and the state&#8217;s <\/span><b>additional wage laws<\/b><span style=\"font-weight: 400;\">. All that\u2019s left now is to make sure that<\/span><b> your business meets the legal requirements of these laws<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this in mind, we\u2019ve put together a handy list of <\/span><b>essential tips and best practices<\/b><span style=\"font-weight: 400;\"> to help you protect your business from potential <\/span><b>non-compliance fines and penalties<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitor working hours<\/b><span style=\"font-weight: 400;\">. Track and calculate employee working hours and make sure you pay non-exempt employees overtime if they work beyond 40 hours in a week. Factorial\u2019s time tracking feature enables real-time monitoring of working hours, including overtime. This allows you to maintain and generate <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">accurate records and reports<\/span><\/a><span style=\"font-weight: 400;\">, ensuring compliance with overtime and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-time-tracking\/\"><span style=\"font-weight: 400;\">time-tracking requirements<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maintain detailed records<\/b><span style=\"font-weight: 400;\">. Keep comprehensive records of all hours worked, wages paid, and deductions for at least three years. Factorial\u2019s HRIS automates recordkeeping, storing all data in a centralized digital format for easy access and compliance with record retention laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Implement an effective payroll system<\/b>. Finally, ensure compliance with the South Carolina minimum wage by implementing an effective, real-time payroll system. <a href=\"https:\/\/factorialhr.com\/payroll\">Factorial\u2019s payroll software<\/a> automatically updates wage rates, ensuring compliance and reducing underpayment risks. What\u2019s more, the feature <b>integrates seamlessly <\/b>with our <b>time-tracking and scheduling software<\/b>, making it easy to <b>monitor employee hours, manage overtime, <\/b>and <b>schedule breaks<\/b>. This comprehensive approach helps you <b>maintain accurate records<\/b> and adhere to all <b>South Carolina minimum wage requirements<\/b>, protecting your business from legal issues and ensuring fair treatment of your employees.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>South Carolina follows at-will employment and right-to-work laws, and while it defaults to federal regulations for minimum wages, overtime pay, and tipped employees, there is a growing push to increase the South Carolina minimum wage beyond the federal level. This movement is fueled by concerns that the current federal minimum wage, which has not increased<a href=\"https:\/\/preproduction.factorialhr.com\/blog\/outh-carolina-minimum-wage\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":139562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-139561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"payroll"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Guide to the South Carolina Minimum Wage | Factorial<\/title>\n<meta name=\"description\" content=\"Everything you need to know about the South Carolina minimum wage: history, current rates, exemptions and best practices for legal compliance\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Guide to the South Carolina Minimum Wage\" \/>\n<meta property=\"og:description\" content=\"Everything you need to know about the South Carolina minimum wage: history, current rates, exemptions and best practices for legal compliance\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preproduction.factorialhr.com\/blog\/outh-carolina-minimum-wage\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.linkedin.com\/company\/factorialhr\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-22T15:03:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-08T20:04:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/08\/22164308\/South-Carolina-minimum-wage.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"830\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cat Symonds\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:site\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cat Symonds\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/outh-carolina-minimum-wage\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/outh-carolina-minimum-wage\/\"},\"author\":{\"name\":\"Cat Symonds\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#\/schema\/person\/4ebd3e0d92175b5ddd09603f442b8632\"},\"headline\":\"Guide to the South Carolina Minimum Wage\",\"datePublished\":\"2024-08-22T15:03:10+00:00\",\"dateModified\":\"2025-01-08T20:04:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/outh-carolina-minimum-wage\/\"},\"wordCount\":2573,\"publisher\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#organization\"},\"articleSection\":[\"Legal &amp; 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