Overtime Laws in South Carolina

As of 2026, South Carolina continues to mirror the federal overtime law under the Fair Labor Standards Act (FLSA) and does not have any standalone state-specific overtime statute. Bill H.3298, which would exempt overtime income from state income tax, remains stuck in the House Ways and Means Committee with no action since it was introduced in January 2025. A more advanced companion effort, H.3368, actually passed the House unanimously in March 2026 but failed in the Senate on a 16-27 vote on March 31, 2026 — so overtime income remains fully taxable under South Carolina state law, with no exemption currently enacted.

Additionally, per the U.S. Department of Labor, the federal salary threshold for exempt employees is $684/week ($35,568/year) — not $1,128/week ($58,656/year). That higher figure came from a 2024 DOL rule that a federal court vacated in November 2024 before it took effect at that level; the DOL made this reversal permanent with a technical amendment on May 14, 2026, formally removing the higher numbers from federal regulations. This lower, reverted threshold is what applies to South Carolina’s exempt workforce.

The table below shows key updates impacting overtime in South Carolina for 2026:

Overview of South Carolina Overtime Laws 2026

South Carolina does not have any state-specific rules and is governed by the federal FLSA. This means that all non-exempt employees must receive overtime pay at 1.5X their regular rate for all hours worked above 40 per week. There are no rules to pay daily overtime wages, nor are there any special provisions for work done on weekends or holidays.

Summary:

• Overtime rate: 1.5 time the employee’s regular hourly rate.
• Weekly overtime: Applies only after 40 hours of work in a workweek.
• Daily overtime: No such state-specific rules for daily overtime pay.
• Exemptions: Same as federal, such as executive, administrative, professional, outside sales and certain IT roles..
• Recordkeeping: Employers follow federal FLSA requirements.

Eligibility for Overtime in South Carolina

South Carolina has clearly classified its workforce into two categories, exempt and non-exempt.

Non-exempt employees are typically those who earn a salary on an hourly basis or a fixed amount that is less than the state/federal minimum wage threshold. Such workers are legally entitled to receive overtime pay for each hour they work beyond 40 per week.

Exempt employees, on the other hand, are those who meet the state/federal salary and duties test and earn a minimum of $58,656 per year, as of January 1, 2025. They are not entitled to receive any overtime pay. Their job duties must be primarily executive, administrative, or professional in nature.

Federal vs. South Carolina Overtime Rules

Since South Carolina’s overtime rules are a direct reflection of federal laws, the difference between federal and state laws is negligible. Let’s take Maria for instance. Maria works for startup and earns $20 per hour. In one week, she works 45 hours. Now, according to both federal and state laws, she will earn a regular pay for 40 hours ($800) and an overtime pay for the additional 5 hours worked at 1.5X her rate ($150), making her weekly total $950.

Maria is fairly compensated for her overtime work as per both federal and South Carolina’s overtime rules. The table below shows this alignment.

Exemptions in South Carolina

Adhering to federal FLSA, South Carolina classifies the following as exempt from overtime.

• Executive Employees: Those who primarily manage a business or department(s), provide work directions to at least two or more employees, and have the authority to hire/fire the workforce.
• Administrative Employees: People whose primary duties include non-manual work directly related to the management or general business operations, demanding the exercise of discretion and independent judgment.
• Professional Employees: People whose work requires advanced knowledge in a field of science, learning, or talent in a recognized artistic field.
• Outside Salespersons: Primarily those who make sales or obtain orders away from the employer’s place of business.
• IT Professionals: Certain skilled IT professionals who meet specific duty and salary requirements.
• Other exemptions: Agricultural workers, seasonal staff working at camps, recreational centers, amusement parks, etc.  

Employer Obligations and Employee Rights

In South Carolina, employers must follow the federal law to ensure fair pay and employee rights.

• Timely Payment: Make timely wage payments on pre-defined dates. The state law also requires employers to provide employees with an itemized breakdown of their wages in the form of salary slips.
• Recordkeeping: Maintain an accurate record of hours worked and wages paid to all non-exempt employees.
• Workplace Protections: Provide a safe working environment in accordance with OSHA standards and follow all anti-discrimination laws.
• Penalties: Failing to make timely payments may make employers liable for back wages, liquidated damages, and legal fees.