South Carolina Minimum Wage 2024

Do you know the latest minimum wage rules in South Carolina? You must learn these regulations to manage your payroll and business operations effectively if you’re running a business.

This blog post comprehensively overviews the South Carolina minimum wage laws for 2024. Whether establishing payroll systems or updating your current procedures, this article delivers the crucial details you need to adhere to legal requirements and control your expenses efficiently.

What Is the Minimum Wage in South Carolina in 2024?

South Carolina’s minimum wage is set at the federal minimum of $7.25 per hour. This is the least amount that employers must pay their employees. In addition to regular pay, employers must compensate employees at one and a half times their usual pay rate for any hours worked beyond 40 in a single workweek, as required by the Fair Labor Standards Act (FLSA).

The South Carolina minimum wage was last updated in 2008, increasing by $0.70 from $6.55 to $7.25 per hour. Employers in South Carolina are required to pay at least $7.25 per hour unless you or your occupation qualifies for an exemption under state or federal wage laws.

It’s important to stay informed about potential changes to minimum wage laws in South Carolina, as updates could affect competitive pay rates for hourly workers.

Understanding the Overtime Minimum Wage Law in South Carolina

The overtime minimum wage in South Carolina is set at $10.88 per hour. This rate applies to workers who exceed 40 hours in a workweek, entitling them to receive at least 1.5 times their regular wage rate. Unlike some states, South Carolina has no daily overtime threshold; only the weekly 40-hour threshold is recognized for overtime eligibility.

Employees not compensated appropriately for overtime can submit a claim for unpaid overtime to the South Carolina Department of Labor.

What Is the Average Income in South Carolina?

In South Carolina, the average hourly pay is approximately $19.69. The average annual income is $40,948. For entry-level roles, salaries begin at $30,186 per year, whereas highly experienced professionals can earn up to $97,899 annually.

Guidelines to Comply With South Carolina Minimum Wage Regulations

Minimum wage laws ensure workers receive a base level of pay and protect them from unfairly low wages. The federal government sets a national minimum wage, but states and localities can establish higher minimum wages. However, state-imposed wages must not fall below the federal threshold.

Since 2008, the minimum wage in South Carolina has been set at $7.25 per hour, aligned with the federal minimum. Efforts to increase this rate to over $10 per hour in 2016 and 2018 did not succeed due to insufficient legislative support.

• In this state, the standard minimum wage covers all hourly workers who are not exempt. College students in work-study programs can earn as little as $6.16 per hour, 85% of the minimum wage. Additionally, workers under 20 may receive $4.25 per hour during their first 90 days of employment. After this period, they are eligible for the $7.25 hourly rate.
• Employers of tipped workers in South Carolina can use a tip credit of up to $5.12. Under this arrangement, workers can be paid a direct wage of $2.13 per hour, provided their tips bring their total earnings up to at least the minimum wage of $7.25 per hour, aligning with federal guidelines on tip credits. Notably, unlike federal regulations, South Carolina does not define a specific tip threshold that qualifies a worker as a “tipped employee.”
• Employers must post the FLSA minimum wage poster in a prominent location to educate employees about their wage rights and the minimum wage. Neglecting to display this poster can lead to fines.
• Employers who fail to comply with the minimum wage laws can be sued, potentially leading to civil and criminal penalties. Repeat offenders may face fines up to $10,000 and imprisonment.

Understanding the Tip Credit System

The tip credit is a provision that permits employers to consider a part of their employees’ tips as part of their minimum wage obligation. In South Carolina, the highest tip credit an employer can apply is $5.12 per hour. If an employee’s tips and base salary fall short of the minimum wage of $7.25 per hour, the employer must cover the shortfall. Maintaining precise records of tips and wages is essential to ensure compliance and avoid possible disputes or legal challenges.

Exemptions to Minimum Wage and Overtime Rules Under FLSA

Understanding which employees are exempt from the FLSA’s minimum wage and overtime provisions is essential. Below are the primary categories of exempt employees:

• Computer Professionals: Employees earning at least $27.63 per hour are exempt from overtime regulations.
• Commissioned Employees: Those in retail or service sectors who earn more than half their income from commissions and average at least 1.5 times the minimum wage per hour are not eligible for overtime.
• Farmworkers: These workers do not qualify for minimum wage or overtime. Additional rules apply to minors employed on these farms.
• Motor Transport Employees: Workers such as helpers, drivers, mechanics, and loaders involved in interstate commerce are exempt from overtime.
• Recreational and Seasonal Workers: Staff at certain recreational and seasonal establishments do not receive minimum wage or overtime.
• Automobile Dealership Workers: Salesmen, mechanics, and partsmen at dealerships are not covered by overtime pay rules.
• Executive, Professional, and Administrative Employees: Employees meeting specific Department of Labor criteria and who are salaried do not qualify for minimum wage or overtime protections.

The U.S. Department of Labor updated the salary thresholds for these exemptions in April 2024 and will implement the changes in July 2024. This update could affect the classification of some employees under these exemptions.

Will the Minimum Wage Change in 2024?

South Carolina is among 20 states adhering to the federal minimum wage of $7.25. Although it appears this rate will persist until there’s a federal increase, some advocates are pushing for South Carolina to establish its own higher minimum wage.

Despite this advocacy, as of 2024, there are no immediate plans to alter the minimum wage in South Carolina.

How Can You Prepare Your Business for Minimum Wage Change in 2024 or Beyond?

To effectively prepare your business for potential minimum wage increases in South Carolina, where the minimum wage currently stands at the federal level of $7.25 per hour, consider the following detailed strategy based on insights from multiple sources:

• Financial Review and Forecasting

Begin by evaluating your business’s financial condition. Review cash flow, sales patterns, and operating expenses to understand your financial situation thoroughly. This will help you plan wage adjustments, which may require budget revisions or employing additional part-time or seasonal workers during high-demand times to control costs.

• Technological Enhancements

Enhance your operations through technology. For example, upgrading to sophisticated Point-of-Sale (POS) systems can reduce manual task time and increase efficiency. Implementing online ordering and digital payment systems can also help minimize the need for extensive staff, thus controlling labor costs.

• Workforce Management

Implement an effective scheduling system to optimize employee hours and productivity. Align staff schedules with business needs while avoiding excessive overtime, which can elevate costs, particularly with potential wage increases.

• Legal Compliance and Employee Relations

Comply with all federal and state labor regulations. Prominently display required labor law posters to inform your team about their rights and your duties. Maintaining positive relationships with your employees through competitive wages, benefits, and opportunities for advancement is crucial for reducing staff turnover and maintaining morale.

• Explore Outsourcing Non-Core Activities

Consider outsourcing tasks such as payroll and human resources to specialized providers. This strategy lets you concentrate on core business activities and manage costs through external expertise.

• Stay Informed and Consult Professionals

Regularly update yourself on legislative changes concerning minimum wage laws and seek advice from professionals like accountants or lawyers to ensure your business complies and is well-prepared for any changes.

Conclusion

Staying informed about South Carolina’s minimum wage laws is essential for business owners and employees. The minimum wage remains $7.25 per hour, with specific rules for overtime pay and exemptions under the FLSA. Understanding these regulations helps businesses manage payroll efficiently and comply with legal requirements.

Employers should regularly check for updates, as any changes could impact pay rates and business operations. Properly implementing the tip credit system and recognizing exemptions can prevent legal issues. By staying knowledgeable and prepared, businesses can maintain fair compensation practices and avoid potential penalties.

Frequently Asked Questions