SC Overtime Payment and Wage Payment Laws
If you work in South Carolina and feel you are not being paid for hours worked, including overtime, we may be able to help. According to the Fair Labor Standards Act (FLSA) anyone receiving hourly compensation, must be paid time and half for any hours worked over 40 during one work week. The FLSA and other employment laws may not cover weekends or holidays unless overtime hours are worked. Many times employers will pay extra for holiday or weekend hours, however, it is not required and is left to the discretion of the employer.
Overtime Pay
Applicable Law
South Carolina does not have a separate state overtime law for most private-sector employees; instead, the state follows the federal Fair Labor Standards Act of 1938 (FLSA).
Under the FLSA, covered nonexempt employees must receive overtime pay at a rate of at least time and one-half (1.5×) their regular hourly rate for all hours worked over 40 hours in a workweek.
Key Details
The threshold is 40 hours in a workweek (a fixed period of seven consecutive 24-hour periods). Simply working more than 8 hours in a day does not automatically trigger overtime unless you cross 40 hours in the week.
The “regular rate” for calculating overtime must include base hourly wages plus certain types of additional compensation (for example, nondiscretionary bonuses, commissions) when determining the correct overtime rate.
Exemptions: An employee may be exempt from overtime (so not entitled to overtime pay) if they meet certain job‐duties criteria (executive, administrative, professional) and meet the salary threshold established under the FLSA. Being salaried alone does not guarantee exemption.
Current salary threshold: For many purposes, the exempt salary threshold is about $684/week (or $35,568/year) under the current standard.
Note: Proposed/future rule changes may raise this threshold. SC Daily Gazette+1
Public Sector / Government Employees
For state agencies (public sector) in South Carolina there are regulations about compensatory time in lieu of overtime. For instance: non-exempt employees may either be paid or given compensatory time (“comp time”) for hours worked over 40. Legal Information Institute+1
Example: Nonexempt employees in public safety or emergency response may accumulate up to 480 hours of comp time; other nonexempt employees up to 240 hours. After reaching those limits, cash overtime must be paid. Legal Information Institute
Things to Watch
If you work overtime (over 40 hours/week) and are non-exempt, you should be paid 1.5× your regular rate for the overtime hours.
If an employer fails to pay proper overtime, you may have a claim under the FLSA (and state law in some respects).
Incorrect classification (mis-labeling someone exempt when they should be nonexempt) is a common issue.
A policy that requires “approval” for overtime does not relieve the employer of their duty to pay for hours worked beyond 40 if the employee actually worked them.
Wage Payment Laws
Applicable State Statutes
Under the South Carolina “Payment of Wages Act” (S.C. Code Ann. §§ 41-10-10 to 41-10-110), employers must pay wages owed in lawful U.S. money or by negotiable check/warrant on the designated payday. South Carolina Legislature Online+1
Employers must keep records of employee names, addresses, wages paid each payday, and deductions, for three years. South Carolina Legislature Online
Itemized wage statements: Employers must furnish each employee a statement showing gross pay and deductions for each pay period. South Carolina Legislature Online
When an employee is discharged (terminated) or separated from employment, the employer must pay all wages due within 48 hours of separation or by the next regular payday (whichever is sooner, but not exceeding 30 days). South Carolina Legislature Online
Minimum Wage
Currently, South Carolina uses the federal minimum wage: $7.25/hour.
For overtime minimum rate example: 1.5× $7.25 = $10.88/hour (for overtime hours) if the employee worked overtime and was otherwise at minimum wage.
Deductions
Employers cannot withhold or divert an employee’s wages unless required or permitted by law, or with the written authorization of the employee specifying the amount and terms of the deduction. South Carolina Legislature Online
Claims & Penalties
Employees may bring claims if wages are not paid as required (including through state statute).
For unpaid wages under the Payment of Wages Act, there may be liability for treble (three-times) damages, plus costs and attorneys’ fees.
Jobs that almost always qualify for overtime pay include:
- File clerks
- Paralegals
- Inside salespeople
- Customer service representatives
- IT/help desk
- Accounts payable/receivable representatives