South Carolina follows federal standards for overtime but also includes specific state-level rules public employers must follow. From compensatory time policies to recent updates on exempt salary thresholds, understanding how overtime works under South Carolina labor laws is necessary for compliance.
This article provides a clear guide to help both employers and employees navigate overtime rules in the Palmetto State.
This Article Covers:
Understanding Overtime in South Carolina
- Which Overtime Laws Apply in South Carolina?
- How are Overtime Laws in South Carolina Different from Federal Laws?
- What is the Regular Rate of Pay in South Carolina?
- How Much is Overtime Pay in South Carolina?
- Who is Eligible for Overtime Pay in South Carolina?
- Who is Exempt from Overtime Pay in South Carolina?
Overtime for Hourly Rate and Salaried Employees in South Carolina
- How Do You Calculate Overtime for Hourly Employees in South Carolina?
- How is Overtime Calculated for Salaried Employees in South Carolina?
Overtime for Complex Pay Structures in South Carolina
- How Do You Calculate Overtime for Piece Rate or Commission Employees in South Carolina?
- How Do You Calculate Overtime with Multiple Pay Rates in South Carolina?
Additional Considerations for South Carolina Overtime
- Are there Industry-Specific Overtime Rules in South Carolina?
- Do Employees in South Carolina Get Extra Overtime Pay for Working on Sundays or Holidays?
- How can Employers Ensure Compliance with South Carolina Overtime Laws?
Understanding Overtime in South Carolina
Which Overtime Laws Apply in South Carolina?
South Carolina follows the federal Fair Labor Standards Act (FLSA) for overtime pay, including the requirement to pay time-and-a-half for hours worked beyond 40 in a week for non-exempt employees.
How are Overtime Laws in South Carolina Different from Federal Laws?
While South Carolina generally adheres to federal standards, it includes specific rules for public employees. For example, state agencies may offer compensatory time off instead of cash overtime pay, at a rate of 1.5 hours per overtime hour worked. Most public employees can accrue up to 240 hours of comp time, while law enforcement, fire protection, and emergency response workers may accrue up to 480 hours.
Additionally, South Carolina law defines a minimum full-time workweek as 37.5 hours for state employees, and sets procedures for how compensatory time must be used or paid out if unused.
What is the Regular Rate of Pay in South Carolina?
In South Carolina, the “regular rate of pay” is used to calculate overtime pay and typically includes all compensation for employment, such as hourly wages, salaries, and certain nondiscretionary bonuses, as defined by the FLSA.
It must be based on total remuneration for employment and is used to determine the one-and-one-half-times rate for hours worked beyond 40 in a workweek.
How Much is Overtime Pay in South Carolina?
South Carolina’s overtime rules follow the federal standard set by the FLSA. The specifications include:
- Weekly Overtime: Employees must be paid 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek.
- Public Sector Comp Time: State and local government employers may offer compensatory time instead of cash, at 1.5 hours of leave per overtime hour, if agreed in advance, capped at 240/480 hrs, and use doesn’t unduly disturb operations.
If you want to learn more, check out our guide on South Carolina overtime laws.
Who is Eligible for Overtime Pay in South Carolina?
Most non-exempt employees in South Carolina are eligible for overtime pay under FLSA. This includes hourly workers and salaried employees who do not meet the executive, administrative, or professional exemption criteria.
Learn more about your overtime rights in South Carolina.
Who is Exempt from Overtime Pay in South Carolina?
Some employees in South Carolina are not eligible for overtime pay under FLSA and related public sector rules. These exemptions include:
- Executive, administrative, and professional employees who meet the duties test and earn at least $684 per week
- Highly compensated employees earning $134,004 or more annually
- Law enforcement and fire protection employees in public agencies with fewer than five such personnel
- Elected officials, their personal staff, policy advisors, and legal advisors not under civil service laws
- Legislative branch employees not subject to civil service laws
- Employees with a valid comp time agreement who haven’t exceeded accrual limits
- Public sector workers who pass the exemption criteria
- Certain seasonal employees (e.g., state tax processing roles) under specific comp time rules
For more details, go through the official Department of Labor and SCAC guidance on overtime exemptions for public employees in South Carolina.
Learn more in detail about South Carolina Salaried Employees Laws.
Overtime for Hourly Rate and Salaried Employees in South Carolina
How Do You Calculate Overtime for Hourly Employees in South Carolina?
In South Carolina, hourly employees are covered by FLSA. Overtime is calculated at 1.5 times the regular hourly rate for any hours worked over 40 in a single workweek.
For example, if an employee earns $20/hour and works 45 hours in a week:
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This calculation reflects the standard federal overtime rule, which applies in the absence of any state-specific enhancements.
For more details, read about your rights as an hourly employee in South Carolina.
How is Overtime Calculated for Salaried Employees in South Carolina?
In South Carolina, salaried employees who are classified as non-exempt under the FLSA are entitled to overtime pay when they work more than 40 hours in a workweek. Here’s how it’s calculated:
Here’s a step-by-step overtime calculation:
| 1. Determine Annual Salary: Start with the employee’s full-time annual salary. |
| 2. Calculate Weekly Pay: Divide the annual salary by 52 weeks. |
| 3. Calculate Regular Hourly Rate: Divide the weekly salary by 40 hours. |
| 4. Calculate Overtime Rate: Multiply the hourly rate by 1.5 for hours worked over 40. |
Take the example of a non-exempt salaried employee earning $48,000 per year works 50 hours in a given week.
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This structure applies to non-exempt salaried workers regardless of whether they follow a 37.5-hour or 40-hour agency schedule. Overtime eligibility begins only after 40 actual hours worked in a workweek, excluding any paid leave or holidays.
Check out our guide on your rights as a salaried employee in South Carolina.
Overtime for Complex Pay Structures in South Carolina
How Do You Calculate Overtime for Piece Rate or Commission Employees in South Carolina?
Under FLSA, which South Carolina follows, employees paid by piece rate or commission must still receive overtime pay for hours worked over 40 in a workweek.
To calculate the regular rate for piece or commission-based employees:
| 1. Add total earnings for the workweek, including all piecework pay or commissions. |
| 2. Divide by total hours worked that week to find the regular hourly rate. |
| 3. Multiply hours worked beyond 40 by 1.5 times that regular rate. |
For example, a commissioned employee earns $600 over 45 hours:
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Employers cannot exclude overtime pay obligations for non-exempt employees simply because they’re paid by output or commissions.
How Do You Calculate Overtime with Multiple Pay Rates in South Carolina?
When a non-exempt employee works at two or more different hourly rates in a single week, FLSA allows for a weighted average method to calculate overtime.
Here’s how to do the calculation:
| 1. Multiply hours worked at each rate to get total straight-time earnings. |
| 2. Add all earnings together for the week. |
| 3. Divide total earnings by total hours worked to get the weighted average regular rate. |
| 4. Apply the 1.5x rate to any hours worked over 40 in the week. |
Take the example of an employee who works 25 hours at $14/hour and 20 hours at $10/hour.
- Total earnings = (25 × $14) + (20 × $10) = $350 + $200 = $550
- Total hours worked = 45
- Weighted average rate = $550 ÷ 45 = $12.22/hour
- Overtime pay = 5 hours × ($12.22 × 1.5) = 5 × $18.33 = $91.65
Total pay for the week = $550 + $91.65 = $641.65
This $12.22 per hour serves as the weighted average regular rate for overtime purposes. Since the employee worked 5 hours beyond the standard 40-hour workweek, those hours must be compensated at 1.5 times this rate—resulting in $18.33 per overtime hour.
Additional Considerations for South Carolina Overtime
Are there Industry-Specific Overtime Rules in South Carolina?
Yes. South Carolina applies special overtime calculation rules to certain public sector employees in law enforcement, fire protection, emergency services, and healthcare.
- Law enforcement employees: They may be placed on a “work period” system instead of a standard 40-hour workweek. For example, law enforcement must receive overtime after working more than 171 hours in a 28-day period (or a proportional threshold for shorter periods).
- Fire protection employees: Fire personnel have a 212-hour threshold over the same 28-day period.
- Employees in hospitals, nursing homes, and mental health facilities: Employees here can be subject to a 14-day work period, where overtime is paid for work beyond 8 hours in a day or 80 hours in two weeks, whichever is greater. This biweekly method offers an alternative to the typical weekly overtime calculation.
Do Employees in South Carolina Get Extra Overtime Pay for Working on Sundays or Holidays?
South Carolina does not mandate extra overtime pay for working Sundays or holidays unless the total hours worked in the workweek exceed 40. However:
- Public employees required to work on a legal holiday earn compensatory holiday leave time.
- If this comp time is not used within 90 days (or 1 year for academic schedules), the employee must be paid for it at their regular rate.
- Exempt employees are not paid for unused holiday comp time under any circumstances.
So, while holiday work may result in additional leave or compensation for some public employees, it is not guaranteed as “extra pay” unless overtime thresholds are met.
How can Employers Ensure Compliance with South Carolina Overtime Laws?
Staying compliant with South Carolina overtime laws helps avoid penalties. Thus, employees in the public sector should:
- Track hours carefully: All time an employee is required or allowed to work must be counted, including short breaks and approved off-site work.
- Understand comp time rules: For non-exempt employees, overtime must either be paid at 1.5x the regular rate or compensated with 1.5 hours of comp time per hour worked over 40. Accrual caps (240 or 480 hours) and usage rules must be followed.
- Follow exemption criteria strictly: Misclassifying exempt vs. non-exempt employees can lead to liability. Ensure employees meet the duties and salary threshold tests.
- Approve overtime in advance: While unauthorized overtime must still be paid, repeated violations may result in disciplinary action for both staff and supervisors.
Using clear policies, consistent approvals, and detailed timekeeping systems can help employers stay compliant with both FLSA and South Carolina-specific rules.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
