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Global Employment Law Guide

USA, South Carolina

(United States) Firm Wyche

Contributors Camden Massingill

Updated 18 Mar 2024
What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?

Workers are classified as "employees", "self-employed" or "independent contractors". Employees can be further designated as full-time, part-time, or temporary; exempt or non-exempt; salaried or hourly, etc.

Are there different types of employment contracts (for example, fixed-term, indefinite)?

Employment contracts can either be for a fixed term or indefinite. If an employee is employed for an indefinite period of time, the employment relationship is considered to be “at will.” This means that both the employer and the employee can end the employment relationship at any time, for any reason, or for no reason at all, as long as the reason is not against the law.

What requirements need to be met in order for an employment contract to be valid?

Basic contract principles govern. There must be an offer and acceptance with an exchange of consideration. Contracts can be express or implied, oral or written. Employment contracts for longer than one year must be in writing.

Are part-time employees afforded the same rights as full-time employees?

Part-time employees have the same basic rights with respect to employment laws, but may not be entitled to certain forms of leave. For example, only employees who work an average of 20 or more hours per week are eligible for Bone Marrow Donation Leave. Part-time employees may also not be eligible for certain health benefits pursuant to plan documents.

Can employment contracts be assigned?

The assignment of employment contracts is permitted if so provided in the contract.

What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?

There is no right to object or to severance unless the employer has a severance policy in place, there is an individual employment contract that provides for severance or a collective bargaining agreement.

Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.

There is no such statute in South Carolina.

In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?

As a practical matter, terms of employment can be changed prospectively, so long as an employer complies with any applicable law, including the South Carolina Payment of Wages Act. Pursuant to the South Carolina Payment of Wages Act, employers must provide employees at least seven days written notice of any changes to the employee’s normal hours; agreed-upon wages (unless wages are being increased); time and place of payment; and deductions that will be made from the employee’s wages, including payments to insurance programs. If an employer violates the South Carolina Wage Payment Act, it may be fined up to $100 for each violation of the notice requirement and payment provisions, and if the employer fails to pay wages due to an employee, the employee may recover in a civil action an amount equal to three times the full amount of the unpaid wages, plus costs and reasonable attorney’s fees as the court may allow. If the employee is under contract, not only must the employer comply with the South Carolina Wage Payment Act, but the terms of the contract will govern. If unilateral modification is not permitted under the contract, then the contract will need to be amended and executed by both parties. If the contract is violated, the employee may bring a breach of contract claim.

Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?

Yes. Employees without a contract for a fixed term are employees-at-will. At-will employees can be terminated from employment at any time, for any reason, as long as that reason does not violate a statute or public policy.

Are there remedies for dismissal without cause or wrongful termination?

At-will employees may be terminated without cause. At-will employees terminated in violation of a statute or public policy, however, may have statutory and common law remedies. Non-at-will employees terminated without cause may have certain contractual remedies.

Are there protections for whistleblowers?

South Carolina whistleblowers who are employed by a South Carolina state government agency are protected from adverse employment actions when they timely report violations of state or federal laws or regulations or other wrongdoing. S.C. Code § 8-27-10, et seq.

South Carolina has a separate whistleblower protection statute for employees who report violations of statutes, rules or regulations regarding occupational safety and health. S.C. Code § 41-15-510.

Do employees have a right to privacy? If so, what are the remedies for a breach?

South Carolina does not provide employees with a specific cause of action with respect to privacy in the workplace. South Carolina's employee privacy rights are rooted in common law and statutory law. South Carolina recognizes three invasions of privacy claims: wrongful appropriation of one's personality; wrongful publicizing of private affairs; and wrongful intrusion into private affairs. 

Employers will typically advise employees that there is no expectation of privacy with respect to workplace facilities and computer systems. If a telephone or other monitoring system is utilized employers will typically notify employees of the possibility of such monitoring. South Carolina does have a statute prohibiting discrimination based on the lawful use of lawful products outside the workplace. 

Are employees afforded any anti-discrimination protection?

South Carolina Human Affairs Law prohibits discrimination in employment against any person (applicant or employee) on the basis of race, color, religion, sex (including pregnancy, childbirth, or related medical condition), national origin, age (40 or older), or disability. This law also protects against harassment based on any of these or because they have complained about discrimination, filed a charge of discrimination, or participated in an employment discrimination investigation or lawsuit.

Duty to Accommodate Disability/Medical Inquiries: Under this law, an employer must make reasonable accommodations for a recognized disability provided it does not result in significant difficulty or expense (“undue hardship”) for the employer. The law places strict limits on employers when it comes to asking job applicants to answer medical questions, take a medical exam, or identify a disability. For example, an employer may not ask a job applicant to answer medical questions or take a medical exam before extending a job offer. An employer also may not ask job applicants if they have a disability (or about the nature of an obvious disability). An employer may ask job applicants whether they can perform the job and how they would perform the job, with or without reasonable accommodation. After a job is offered to an applicant, the law allows an employer to condition the job offer on the applicant answering certain medical questions or successfully passing a medical exam, but only if all new employees in the same type of job have to answer the questions or take the exam. Once a person is hired and has started work, an employer generally can only ask medical questions or require a medical exam if the employer needs medical documentation to support an employee's request for an accommodation or if the employer believes that an employee is not able to perform a job successfully or safely because of a medical condition.

Duty to Accommodate Religious Beliefs: The law requires an employer to reasonably accommodate an employee's religious beliefs or practices unless doing so would cause difficulty or expense (“undue hardship”) for the employer. 

Retaliation: it is against the law for an employer to retaliate against an employee because they filed a charge of discrimination because they complained to their employer or other covered entity about discrimination on the job, or because they participated in an employment discrimination proceeding (such as an investigation or lawsuit).

Duty to Accommodate Pregnant Employees: South Carolina employers with 15 or more employees are required to make facilities readily accessible for and provide reasonable accommodations to employees with “medical needs arising from pregnancy, childbirth, or related medical conditions,” including lactation unless the employer can demonstrate the accommodation would impose an undue hardship on the operation of the business. The Act also requires that employers provide employees with written notice of its protections and post related information in conspicuous areas.

Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?

South Carolina does not have statutory requirements that private-sector employers provide vacation, medical, or parental leave. If the private-sector employer provides vacation or sick leave, however, the South Carolina Payment of Wages Act governs the policy. Federal law would apply.

Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?

Yes. Restrictive covenants are recognized but are only enforced if they are necessary to protect an employer's legitimate business interest, reasonably limited about time and territory, not unduly restrictive of the employee's ability to earn a living, reasonable from a public policy standpoint, and supported by valuable consideration. Assessment of reasonableness is considered on a case-by-case basis.  Non-competes of three years or less have been enforced. Additionally, a relaxed standard is applied when a non-compete relates to the sale of a business and the courts appear to be more tolerant of a longer duration.

Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?

Yes, an at-will employee can be terminated for refusing to sign a restrictive covenant. An individual who has been offered employment contingent upon signing a restrictive covenant may have his/her offer revoked if he/she refuses to sign. New employment is a valid consideration for a restrictive covenant. If employment has already begun, then additional consideration is necessary (e.g. signing bonus, promotion, pay increase, severance (in the event employment is being terminated)). Continued at-will employment without any change in the terms and conditions of employment is not sufficient consideration.

Does your jurisdiction require contributions to a pension or retirement scheme?

Private employers are not required under South Carolina law to contribute to a pension or retirement scheme.

Are certain benefits mandated by your jurisdiction?

South Carolina requires employers with 4 or more employees to carry workers’ compensation insurance. South Carolina requires employers to pay unemployment insurance taxes. Federal health care law requires employers with more than 50 full-time equivalent employees to either provide health care insurance for employees who work more than 30 hours per week or, if not, pay a penalty.

Is it permitted to have a mandatory retirement age in your jurisdiction?

South Carolina private employers do not have a mandatory retirement age. Restrictions on mandatory retirement policies under the federal Age Discrimination in Employment Act apply.

Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?

There are no specific South Carolina laws governing the cessation of benefits. There may be, however, additional considerations under the federal Employment Retirement Income Security Act.

Can an employer make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an emp...

Generally speaking, from a state law perspective, there are no South Carolina-specific laws in the employer/employee context that would prevent an employer from implementing a mandatory COVID-19 vaccine program/policy. Applicable federal law would govern. That said, legislation is currently pending in South Carolina regarding employers mandating and/or incentivizing vaccination. Senate Bill 177, as drafted, would not only prohibit employers from mandating a COVID-19 vaccine for their employees, but it would also stand in the way of employers offering incentives to those who choose to get vaccinated.

Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?

Generally speaking, there are no South Carolina laws specifically addressing returning to work (or refusal to return) in the context of COVID-19. Employers would generally be permitted to require employees to return to work in an office (absent a government order to shut down), provided the employer properly considers medical accommodation requests under the ADA and South Carolina’s Human Affairs laws. Additional exceptions may need to be made based on other applicable federal laws. South Carolina employees who refuse a return-to-work notice will, however, lose eligibility for unemployment benefits

Global Employment Law Guide

USA, South Carolina

(United States) Firm Wyche

Contributors Camden Massingill

Updated 18 Mar 2024