Hiring New Employees in South Carolina: Legal Guide for Employers

Hiring employees in South Carolina requires compliance with both federal and state-specific employment laws. Employers must understand South Carolina's at-will employment doctrine, verification requirements, and reporting obligations to avoid potential legal complications.

South Carolina employers must report all new hires to the State Directory of New Hires within 20 days of their hire date. Failure to comply with South Carolina's employment laws can result in significant penalties, including fines and potential liability in employment disputes.

Key Considerations

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Relevant Laws

South Carolina Payment of Wages Law

Employers must notify employees in writing at the time of hiring of the normal hours and wages agreed upon, the time and place of payment, and the deductions to be made from wages. Any changes require written notification at least seven calendar days before they take effect.

South Carolina Human Affairs Law

Prohibits employment discrimination based on race, religion, color, sex, age, national origin, or disability. Employers with 15 or more employees must comply with this law when making hiring decisions.

South Carolina E-Verify Requirement

All employers in South Carolina must verify the legal status of new employees through the federal E-Verify program within three business days of hiring. Failure to comply can result in probation, suspension or revocation of business licenses.

South Carolina Right-to-Work Law

Prohibits requiring employees to join a union as a condition of employment. When hiring, employers cannot discriminate based on union membership or non-membership.

South Carolina Child Labor Laws

Restricts employment of minors under 18 in certain occupations and limits working hours for those under 16. Employers must obtain employment certificates for minors under 16 before hiring.

Federal Fair Labor Standards Act (FLSA)

Sets minimum wage, overtime pay, recordkeeping, and youth employment standards that apply in South Carolina. Employers must classify new hires correctly as either exempt or non-exempt employees.

Federal Immigration Reform and Control Act

Requires employers to verify the identity and employment eligibility of all employees by completing Form I-9 within three business days of the date of hire.

Regional Variances

Major Metropolitan Areas

Charleston has additional local ordinances that affect employers, including a more stringent background check process for businesses operating in the historic district. Employers must also comply with the Charleston Living Wage ordinance for any business contracting with the city.

As the state capital, Columbia has specific requirements for businesses hiring state government contractors. Employers must also verify compliance with the city's Fair Chance Hiring ordinance, which restricts when criminal history inquiries can be made during the hiring process.

Greenville has implemented additional requirements for employers in the technology and manufacturing sectors, including specialized reporting for new hires. The city also offers tax incentives for businesses that hire local residents, which requires additional documentation during the onboarding process.

Coastal Regions

Hilton Head has seasonal employment regulations that affect hiring practices, particularly for tourism and hospitality industries. Employers must comply with additional verification requirements for seasonal workers and specific wage reporting for hospitality staff.

Myrtle Beach has implemented tourism-specific employment regulations that include additional reporting requirements for seasonal workers. Employers in the hospitality industry must also comply with special local tax withholding procedures and provide specific disclosures to seasonal employees.

Manufacturing Hubs

Spartanburg County has specific requirements for manufacturing employers, including additional safety training documentation for new hires. The county also offers incentive programs for hiring local workers, which requires special documentation during the onboarding process.

York County has implemented specific regulations for employers near the North Carolina border, including additional tax documentation for employees who live in one state but work in the other. Employers must also comply with county-specific reporting requirements for new hires in manufacturing and distribution sectors.

Suggested Compliance Checklist

Create and review job description

1 days after starting

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with South Carolina employment laws and does not contain discriminatory language. This will serve as the foundation for your hiring process.

Post job opening and collect applications

14 days after starting

Advertise the position through appropriate channels and collect Employment Application Forms from candidates. South Carolina is an at-will employment state, but your application should still avoid questions about protected characteristics (race, religion, age, etc.) to comply with anti-discrimination laws.

Prepare Employment Application Form

1 days after starting

Create an application form that collects necessary information while complying with South Carolina employment laws. Avoid questions about protected characteristics. Include authorization for reference checks and a statement about South Carolina's at-will employment doctrine.

Conduct interviews and select candidate

21 days after starting

Interview qualified candidates and select the best fit for the position. Ensure interview questions comply with anti-discrimination laws and focus on job-related qualifications. Document your selection process to demonstrate non-discriminatory hiring practices.

Prepare Background Check Authorization Form

22 days after starting

Create a form that complies with the Fair Credit Reporting Act (FCRA) and South Carolina law to obtain the candidate's consent for background checks. The form should clearly disclose that a background check will be conducted and obtain the candidate's authorization.

Conduct background checks

28 days after starting

After receiving signed authorization, conduct appropriate background checks in compliance with FCRA and South Carolina law. If you decide not to hire based on background check results, follow FCRA adverse action procedures, including providing pre-adverse action and adverse action notices.

Prepare Employment Offer Letter

29 days after starting

Draft an offer letter that outlines the position, compensation, benefits, start date, and at-will employment status. In South Carolina, clearly stating the at-will relationship is important to preserve employer rights. The letter should request the candidate's written acceptance.

Prepare Employment Contract (if applicable)

29 days after starting

If using a formal employment contract rather than an offer letter, draft a contract that clearly outlines all terms of employment. In South Carolina, most employment is at-will, but if you choose to use a contract, be aware it may limit your ability to terminate without cause. Consider having an attorney review the contract.

Prepare Non-Disclosure Agreement

29 days after starting

Draft an NDA to protect your company's confidential information. South Carolina courts generally enforce reasonable NDAs. Ensure the agreement clearly defines what constitutes confidential information and the employee's obligations to maintain confidentiality.

Prepare Non-Compete Agreement (if applicable)

29 days after starting

If necessary, draft a non-compete agreement. South Carolina courts will enforce reasonable non-compete agreements that protect legitimate business interests. The agreement should have reasonable limitations on geographic scope, duration, and activities restricted. Consider having an attorney review to ensure enforceability.

Verify employment eligibility documentation requirements

30 days after starting

Research federal I-9 requirements and prepare to verify the new hire's identity and employment authorization. Employers must complete Form I-9 within 3 business days of the employee's first day of work.

Prepare Form I-9 Employment Eligibility Verification

33 days after starting

Have the new employee complete Section 1 of Form I-9 on their first day of employment. As the employer, you must complete Section 2 within 3 business days of the employee's start date after physically examining the employee's identity and work authorization documents.

Prepare Form W-4 Employee's Withholding Certificate

33 days after starting

Provide the federal W-4 form to the new employee to determine federal income tax withholding. The employee should complete this form on or before their first day of employment.

Prepare State Tax Withholding Form

33 days after starting

Provide the South Carolina state tax withholding form (SC W-4) to determine state income tax withholding. South Carolina has its own withholding form that must be completed in addition to the federal W-4.

Prepare Direct Deposit Authorization Form

33 days after starting

Create a form for employees to authorize direct deposit of their paychecks. Include fields for bank account and routing numbers. While direct deposit is not required in South Carolina, if offered, proper authorization must be obtained.

Prepare Emergency Contact Information Form

33 days after starting

Create a form to collect emergency contact information. This is not legally required but is a best practice for workplace safety and emergency response.

Prepare Benefits Enrollment Forms

33 days after starting

Prepare forms for the employee to enroll in available benefits programs (health insurance, retirement plans, etc.). Include information about eligibility requirements and enrollment deadlines. If benefits are subject to a waiting period, clearly communicate this to the new employee.

Review or create Employee Handbook

33 days after starting

Ensure your employee handbook is up-to-date with current South Carolina and federal employment laws. The handbook should cover company policies, procedures, code of conduct, anti-discrimination policies, and other important information. Have the new employee acknowledge receipt of the handbook.

Register with South Carolina New Hire Reporting Program

35 days after starting

If this is your first employee in South Carolina, register with the South Carolina Department of Social Services New Hire Reporting Program. Employers must register within 20 days of hiring their first employee.

Prepare New Hire Reporting Form

35 days after starting

Complete the South Carolina New Hire Reporting Form with the required information about your new employee. South Carolina requires employers to report new hires within 20 days of their hire date to the State Directory of New Hires.

Register for unemployment insurance

35 days after starting

If this is your first employee, register with the South Carolina Department of Employment and Workforce for unemployment insurance. All employers with employees in South Carolina must register and pay unemployment insurance taxes.

Obtain workers' compensation insurance

35 days after starting

Secure workers' compensation insurance as required by South Carolina law. Most employers with four or more employees (full-time or part-time) must carry workers' compensation insurance. There are some exemptions, so research if your business qualifies for any exemptions.

Display required workplace posters

35 days after starting

Obtain and display all required federal and South Carolina workplace posters in a conspicuous location. These include posters on minimum wage, workplace safety, equal employment opportunity, and other employment laws.

Set up payroll system

40 days after starting

Establish a payroll system that complies with South Carolina wage and hour laws. South Carolina follows federal minimum wage ($7.25/hour) and has specific requirements for pay frequency and final paychecks. Ensure your system properly calculates and withholds taxes.

Conduct new employee orientation

45 days after starting

Plan and conduct an orientation for the new employee to review company policies, procedures, and expectations. This should include safety training, review of the employee handbook, and completion of any remaining paperwork.

Frequently Asked Questions

When hiring in South Carolina, you must complete federal forms including the I-9 (employment eligibility verification) and W-4 (tax withholding). You'll also need to report the new hire to the South Carolina Department of Social Services within 20 days. Additionally, you must register with the South Carolina Department of Employment and Workforce for unemployment insurance if you haven't already done so.

Yes, South Carolina is an at-will employment state. This means that, absent a contract specifying otherwise, either the employer or employee can terminate the employment relationship at any time, with or without cause or notice. However, employers still cannot terminate employees for illegal reasons such as discrimination or retaliation.

South Carolina does not have its own state minimum wage law. Therefore, the federal minimum wage of $7.25 per hour applies to most employees in the state. Some employees may be exempt from minimum wage requirements based on their job duties or the size of the employer.

Yes, South Carolina law requires most employers with four or more employees (full-time or part-time) to provide workers' compensation insurance. There are a few exemptions, including agricultural employees, railroad employees, and casual employees. Failure to provide required coverage can result in significant penalties.

Yes, South Carolina employers must display several workplace posters, including federal posters (such as FLSA, FMLA, OSHA, and Equal Employment Opportunity) and state-specific posters (such as the South Carolina Labor Law Abstract and information about workers' compensation). These must be posted in a location where all employees can easily see them.

Yes, South Carolina allows employers to conduct pre-employment drug testing. The state does not have specific laws regulating drug testing in private employment, giving employers relatively broad discretion. However, testing should be conducted consistently to avoid discrimination claims, and employers should have a clear written policy regarding drug testing.

South Carolina follows federal overtime laws under the Fair Labor Standards Act (FLSA). Non-exempt employees must receive overtime pay at a rate of at least 1.5 times their regular rate for hours worked beyond 40 in a workweek. Certain employees may be exempt from overtime requirements based on their job duties and salary level.

Yes, like all U.S. employers, you must verify employment eligibility by completing Form I-9 within three business days of the employee's first day of work. South Carolina also requires employers to use E-Verify, the federal electronic verification system, to confirm that new hires are legally authorized to work in the United States.