- within Cannabis & Hemp, Real Estate and Construction and Strategy topic(s)
- with readers working within the Business & Consumer Services industries
South Carolina continues to be an employer-friendly state. Generally, taxes are low, and it remains an at-will and right-to-work state. During the 126th Legislative Session, the South Carolina General Assembly is considering a handful of proposed bills that would impact employers if passed.
Two competing bills to create a state minimum wage are being considered. House Bill 3226 proposes establishing a minimum wage of $8.75 effective January 1, 2026, which would increase to $9.75 on January 1, 2027; to $10.10 on January 1, 2028; and would be annually adjusted based on the Consumer Price Index beginning January 1, 2029. An alternative bill, House Bill 3809, would create a minimum wage of $17.00 beginning on January 1, 2027. Until either bill is enacted, the federal minimum wage of $7.25 applies in South Carolina.
House Bill 4751 proposes a state requirement for overtime payment of one and one-half times pay for hours worked in excess of eight hours in a workday or 40 hours in a workweek. House Bill 4751 provides flexibility for employers to establish overtime agreements in writing with employees and requires employers to comply with more generous provisions under federal law, collective bargaining agreements, or employment contracts.
House Bill 4602, entitled the “Small Business Livable Wage Tax Credit Act,” would provide for an income tax credit for certain employers who pay nonexempt employees at or above the livable wage. HB 4602 rewards employers who voluntarily raise wages rather than mandating a wage hike.
There are also two bills proposing restrictions on covenants not to compete in employment, but these are limited to healthcare and nonprofits. Senate Bill 46 would prohibit restrictions on physicians to practice medicine, while House Bill 3273 proposes to nullify and prohibit covenants not to compete for some nonprofit corporations.
The South Carolina Department of Revenue has posted updated withholding tables for 2026 and adopted a new W-4 form, which can be found here.
In November of 2025, Governor Henry McMaster announced that South Carolina's unemployment insurance (UI) tax rates will decrease or remain the same for employers in 2026. For businesses in tax classes 2 through 19, the 2026 rates are lower with a forecasted savings for businesses of 34%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]