What labor laws apply when hiring employees?

Labor Laws for Hiring Employees in South Carolina

When hiring employees in South Carolina, it is important to comply with both federal and state labor laws to ensure proper business operations and avoid penalties.

Key Labor Laws and Requirements

• At-Will Employment: South Carolina follows the at-will employment doctrine, meaning employers or employees can terminate employment at any time without cause, unless a contract states otherwise.
• Minimum Wage: South Carolina follows the federal minimum wage of $7.25 per hour as of 2026. Ensure payroll systems are set up to comply with this standard.
• Overtime Pay: Employers must comply with the Fair Labor Standards Act (FLSA) overtime rules, paying 1.5 times the regular rate for hours worked over 40 in a workweek for eligible employees.
• Employee Classification: Properly classify workers as employees or independent contractors to comply with tax withholding, payroll, and benefits obligations.
• Workplace Posters: Display required federal and state labor law posters in a visible location for employees, including wage and hour notices and anti-discrimination posters.
• Employment Eligibility Verification: Complete and retain Form I-9 for all new hires to verify legal authorization to work in the U.S.
• Anti-Discrimination Compliance: Follow federal laws enforced by the Equal Employment Opportunity Commission (EEOC), prohibiting discrimination based on race, gender, age, disability, and other protected classes.
• Workers’ Compensation Insurance: South Carolina requires most employers to carry workers’ compensation insurance to cover employee injuries on the job.

Operational Considerations

• Recordkeeping: Maintain accurate payroll and hiring records for at least three years to meet compliance and reporting requirements.
• Payroll Setup: Automate payroll processes to handle withholding taxes, overtime, and wage payments accurately.
• Employee Handbook: Develop clear policies reflecting South Carolina labor laws and communicate them during onboarding.
• Compliance Monitoring: Regularly review changes in labor laws at the federal and state levels to update hiring and payroll practices accordingly.