What is the Minimum Wage in South Carolina

Understanding Minimum Wage Laws in South Carolina

If you're considering a job in South Carolina or you're a business owner, it's important to know the current laws around minimum wage. Minimum wage regulations set the lowest hourly pay employers can legally offer. This matters for workers, families, and the state's overall economy.

Current Minimum Wage in South Carolina

As of 2024, South Carolina does not have its own state minimum wage law. That means minimum wage workers in South Carolina fall under the federal minimum wage regulations.

• The federal minimum wage rate is $7.25 per hour, established by the Fair Labor Standards Act (FLSA).
• South Carolina employers must pay at least $7.25 per hour to non-exempt employees.
• The minimum cash wage for tipped employees is $2.13 per hour, with the employer making up the difference if tips plus base wage do not reach $7.25 per hour.

Does South Carolina Have a Higher Minimum Wage than Federal?

No, South Carolina does not set a higher rate. The state defers to federal law. In contrast, some neighboring states—like Florida—have set their own, higher rates.

• South Carolina’s minimum wage: $7.25/hour
• Federal minimum wage: $7.25/hour
• The state has never passed a separate minimum wage law.

Who Receives Minimum Wage in South Carolina?

Not every worker qualifies for minimum wage in South Carolina. Here’s who is generally covered:

• Hourly employees of businesses with at least $500,000 in annual gross sales
• Full-time and part-time workers, including teenagers (some restrictions apply)
• Non-exempt workers as defined by the FLSA

Some workers are not covered:

• Independent contractors
• Certain farmworkers
• Some seasonal and recreational workers
• Executive, administrative, or professional employees paid on a salary basis (exempt status)

Cost of Living Trends vs. Minimum Wage in South Carolina

Cost of living in South Carolina is lower than in many U.S. states, but prices for essentials like housing and groceries have continued to rise. While $7.25 per hour meets legal requirements, many workers find it challenging to meet their basic needs.

• Housing costs are rising in metropolitan areas like Charleston and Greenville.
• Groceries and utilities have increased in price since 2020.

As a result, workers earning minimum wage may need to combine multiple jobs or households for financial stability.

Minimum Wage for Tipped Employees in South Carolina

If you work as a server or bartender, you may earn tips as part of your compensation. Under the FLSA, the minimum cash wage for tipped employees in South Carolina is $2.13 per hour.

• If your total wage (cash wage plus tips) does not equal $7.25 per hour, your employer must make up the difference.
• This system is called the tip credit allowance.
• Tipped employees must be informed by their employer about the tip credit claim.

Are There Proposals to Raise the Minimum Wage in South Carolina?

Over the years, there have been discussions among lawmakers and activists about raising the minimum wage. However, as of June 2024, there are no current laws increasing the minimum wage in South Carolina. Any increase would require new state legislation or a change in federal law.

• Advocacy groups continue to push for a living wage.
• Business groups express concerns about possible impact on small businesses.
• No recent bills to raise the minimum wage have passed in the South Carolina Legislature.

Impact of Minimum Wage on South Carolina Jobs and Economy

Minimum wage policies affect both workers and employers. Supporters of higher minimum wages point to increased consumer spending and reduced poverty levels. Opponents worry about higher labor costs and stress on small businesses.

• South Carolina has a large service and hospitality industry heavily reliant on minimum wage workers.
• Regions with tourism, such as Myrtle Beach, see many seasonal jobs starting at minimum wage.
• Entry-level retail and restaurant workers are most likely to earn the minimum wage.

Frequently Asked Questions About Minimum Wage in South Carolina

Is the minimum wage going up in South Carolina in 2024?

No, there is no scheduled increase for the minimum wage in South Carolina as of 2024. The rate remains $7.25 per hour, following the federal minimum wage law.

Which employees can be paid less than minimum wage in South Carolina?

Certain workers can be legally paid below minimum wage, such as tipped employees (if tips make up the difference), some student workers, and trainees under specific federal waivers. Exemptions also exist for farmworkers, some seasonal workers, and independent contractors.

Do cities or counties in South Carolina have their own minimum wage?

No. Cities and counties in South Carolina are not allowed to set a local minimum wage higher than the federal rate. All regions in the state follow the same $7.25 per hour standard.

What is the minimum wage for minors or students in South Carolina?

Employers can pay employees under 20 years old a training wage of $4.25 per hour for the first 90 calendar days of employment. After 90 days, the wage must go up to at least $7.25 per hour.

Where can I report a minimum wage violation in South Carolina?

You can file a complaint with the U.S. Department of Labor's Wage and Hour Division if you believe your employer is not paying you at least the federal minimum wage in South Carolina.

How to Stay Informed About Minimum Wage Updates in South Carolina

Legislation can change at both state and federal levels. If you're a worker, keep track of updates from the U.S. Department of Labor and local news sources. Employers should consult with HR professionals or legal experts to stay compliant with wage laws.

• Sign up for state or labor department alerts for any proposed changes.
• Talk to your employer if you have questions about pay or overtime rules.
• Check your pay stub to ensure you are being paid the current minimum wage for South Carolina.

Key Takeaways for Workers and Employers

• South Carolina’s minimum wage is $7.25 per hour, based on federal law.
• No state or local increases are currently planned for 2024.
• Tipped employees may legally earn $2.13 per hour in wages, with tips making up the rest to meet the federal minimum.
• It's important to know your rights and employer obligations under the FLSA.

Staying informed and understanding your rights is the best way to protect your financial future. If you have questions, seek help from reliable state agencies or legal professionals.