South Carolina Overtime Laws 2026
As of 2025, 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. The state has proposed a bill (H.3298) in the General Assembly to exempt overtime income from state income tax. However, the proposal has not yet been enacted.
Additionally, as per the U.S. Department of Labor, the salary threshold of exempt employees has also increased to $1,128/week or $58,656/year, applicable to the exempt workforce of South Carolina as well.
The table below shows key updates impacting overtime in South Carolina for 2026:
| Update Area | 2025 Changes & Details |
| Minimum Wage | South Carolina defaults to the federal minimum wage of $7.25/hour. There is no state-mandated minimum wage. |
| Overtime Salary Exemption | Effective January 1, 2025, the federal salary threshold for most exempt employees increases to $1,128/week (equivalent to $58,656/year). |
| State Legislation | Bill 3450, a proposed law, would make overtime earnings exempt from state income tax. As of early 2025, it is still under review in committee and has not been enacted. |
| State Law Compliance | South Carolina’s overtime rules are entirely governed by the federal Fair Labor Standards Act (FLSA). It does not have any provisions to offer daily overtime. |
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.
| Aspect | Federal (FLSA) | South Carolina Law (2026) |
| Weekly Overtime | 1.5x after 40 hours/week | Same as federal |
| Daily Overtime | No | No |
| Salary Exemption | $1,128/week ($58,656/year) as of Jan 2025 | Mirrors federal |
| Minimum Wage | $7.25/hour | $7.25/hour |
| Exemptions | Executive, administrative, professional, etc. | Same as federal |
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.
Got questions?
No. As of 2024, South Carolina’s overtime laws are governed by the federal Fair Labor Standards Act (FLSA), which requires employers to pay overtime to all non-exempt employees who work more than 40 in a week.
As per the state/federal laws, employees who meet the federal “white-collar” exemption tests are exempt. This includes executive, administrative, and professional employees who earn at least $1,128 per week (as of Jan. 1, 2026) and whose job duties meet specific criteria.
Not all salaried employees are eligible to receive overtime pay. The rule applies to only those who earn less than the state/federal set minimum salary threshold and do not perform duties that meet the exemption criteria. They are legally entitled to receive overtime pay at 1.5X their regular wage rate.
No. Since the state of South Carolina follows federal FLSA, most agricultural workers are exempt from overtime pay provisions. Similarly, certain employees working at seasonal amusement or recreational establishments are also exempt.
An employee can file a wage complaint with the South Carolina Department of Labor, Licensing, and Regulation (LLR), Office of Wages and Child Labor, and the U.S. Department of Labor’s Wage and Hour Division by phone or online.
No. The state does not require employers to pay daily overtime wages. Overtime pay is only calculated on a weekly basis, i.e., if an employee works for more than 40 hours in a workweek.