South Carolina Termination Laws

When it comes to South Carolina termination laws, there’s a lot more than just a simple goodbye handshake. Knowing the boundaries and protections can save businesses from potential legal missteps and give workers peace of mind during the process.

This guide covers the essentials without unnecessary details, setting you up with the knowledge you need to handle terminations the right way in South Carolina.

This Guide Covers

Legal Considerations for Termination in South Carolina
At-Will Employment in South Carolina
Lawful Termination in South Carolina
Legal Protections During Termination in South Carolina
Terminated Employee Benefits in South Carolina
Layoffs in South Carolina
Resignations in South Carolina
Legal Cases Related to Wrongful Termination in South Carolina

Legal Considerations for Termination in South Carolina

South Carolina employers must follow specific legal steps when terminating employees to avoid lawsuits and ensure compliance with federal and state laws. Here are the most important legal considerations:

  • Discrimination Prohibition: Terminations based on race, gender, religion, age, disability, or other protected characteristics are strictly prohibited under both federal and South Carolina laws. Employers must ensure terminations are based on legitimate business reasons and avoid any hint of discrimination.
  • Retaliation Protections: South Carolina employers cannot terminate employees in retaliation for exercising their legal rights. This includes filing complaints about workplace conditions, participating in investigations, or asserting their rights under state or federal laws. Retaliatory terminations could lead to serious legal action.
  • Final Pay Obligation: South Carolina law mandates that employers settle all wages owed to a terminated employee within 48 hours of separation or by the next regularly scheduled payday, whichever comes first. However, the payment deadline cannot exceed 30 days from the termination date. This legal requirement ensures that employees receive any due compensation, including unpaid wages and accrued benefits like vacation days, without unreasonable delay.
  • WARN Act: Employers planning mass layoffs or plant closures must comply with the federal  Worker Adjustment and Retraining Notification (WARN) Act, which mandates 60 days’ notice for affected employees. This applies to larger employers and helps protect workers from sudden job loss.
  • COBRA Benefits: When an employer offers group health insurance, terminated employees have the right to continue their health coverage under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA). While the employee is responsible for paying the premium, this option ensures ongoing coverage during the job transition.
  • Severance Agreements: Although severance pay is not required in South Carolina, if an employer chooses to offer it, the severance agreement must be legally sound. These agreements often include non-compete clauses and the release of legal claims.
  • Clear Documentation: Employers must maintain thorough documentation when terminating an employee. This includes records of performance issues, warnings, and the reason for termination. Proper recordkeeping is necessary for defending against any wrongful termination claims that might arise.

At-Will Employment in South Carolina

What is At-Will Employment?

South Carolina operates under the doctrine of at-will employment. This means that employers can terminate employees for any reason, good, bad, or without any reason at all, as long as the termination does not violate state or federal laws. Similarly, employees are free to quit their jobs at any time without providing advance notice. While this flexibility benefits both parties, terminations cannot be based on illegal grounds such as discrimination or retaliation.

What are the Exceptions to At-Will Employment in South Carolina?

South Carolina may be an at-will state, but even that comes with some exceptions. While employers have the freedom to terminate employees without reason, they can’t do so when it violates public policy or breaks any implied agreements. Here are the key exceptions:

  • Public Policy Violation: You can’t fire someone for exercising their legal rights or refusing to do something illegal. For example, dismissing an employee for filing a workers’ compensation claim or for reporting workplace safety violations is a big no-no in South Carolina.
  • Implied Contract: If there’s any sort of written or verbal promise from the employer, like in an employee handbook or through a spoken agreement, it might override the at-will rule. Employers need to be careful with what’s outlined in policies or what they say in performance reviews—it could be seen as an implied contract, which limits their ability to terminate without reason.

Employment Under Contract in South Carolina

Employment contracts in South Carolina lay out the specific terms governing the working relationship between employers and employees. These contracts cover job duties, pay, benefits, and the conditions under which either party can terminate the employment. Unlike at-will employment, a contract adds structure and limitations, meaning employers must follow the agreed-upon terms before ending the employment.

Contracts can be written, verbal, or even implied through company policies. South Carolina upholds all these types of agreements, though written contracts offer clearer protection. To avoid misunderstandings, employers should ensure any job-related documents clearly state whether they are intended as contracts.

Lawful Termination in South Carolina

Legal Grounds for Termination in South Carolina

Employers in South Carolina can terminate employees based on a variety of valid grounds, such as:

  • Performance Issues: Employees consistently failing to meet job standards, missing deadlines, or producing poor-quality work can be lawfully terminated. Documenting these issues ensures a smoother termination process.
  • Misconduct: Termination for misconduct includes repeated tardiness, insubordination, or violating company policies. Serious misconduct, such as theft or harassment, often leads to immediate termination.
  • Violation of Company Policies: Employees who violate workplace policies, including attendance rules, professional conduct guidelines, or health and safety standards, may be lawfully dismissed.
  • Drug-Free Workplace Act: The South Carolina Drug-Free Workplace Act allows employers to terminate employees who violate the company’s drug policy. This includes the use, possession, or distribution of controlled substances in the workplace. Employers must also notify the employee of the policy and provide options like drug rehabilitation programs when applicable.
  • Business Necessity: Layoffs due to restructuring, financial downturns, or business closures are considered lawful if they comply with legal guidelines, such as the Worker Adjustment and Retraining Notification (WARN) Act for larger-scale layoffs.

Read our complete guide to firing employees in South Carolina for further information.

How Do I File a Wrongful Termination Claim in South Carolina?

Employees in South Carolina who think they’ve been wrongfully fired need to figure out if their termination broke any laws, like discrimination or retaliation. If they were let go because of their race, age, gender, disability, or another protected status, or if it was retaliation for reporting something illegal, they may have a solid case for wrongful termination. Knowing the exact reason for being fired is key to deciding if any state or federal laws were violated.

To get started, terminated employees need to file a complaint with the South Carolina Human Affairs Commission (SCHAC) within 180 days of the incident. If they miss that window but are still within 300 days, SCHAC will pass the case on to the Equal Employment Opportunity Commission (EEOC). Filing can be done online, by mail, or in person. Once the complaint is in, SCHAC will decide if there’s enough basis to take action and might move the case to mediation or further investigation.

Legal Protections During Termination in South Carolina

Federal and state laws in South Carolina provide employees with legal protections during the termination process. Key protections for employees include:

  • Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights Act protects employees from being fired based on race, color, religion, sex, or national origin. Employers with 15 or more employees must comply with this federal law, preventing discriminatory terminations. 
  • Age Discrimination in Employment Act of 1967: The federal Age Discrimination in Employment Act (ADEA) protects workers aged 40 and older from being terminated due to age-related biases. This act applies to employers with 20 or more employees and aims to ensure age isn’t a factor in firing decisions.
  • Americans with Disabilities Act: The Americans with Disabilities Act (ADA) prohibits firing employees based on disabilities if they can perform their job duties with or without reasonable accommodations. Employers with 15 or more employees must ensure that terminations are not based on a failure to accommodate a disability. 
  • Family and Medical Leave Act: Employees who take FMLA leave for health or family reasons cannot be terminated for exercising their leave rights according to the Family and Medical Leave Act (FMLA). The FMLA applies to employers with 50 or more employees and ensures that workers can return to their jobs after a valid leave.
  • Fair Labor Standards Act: The Fair Labor Standards Act (FLSA) is a federal act that requires employers to pay minimum wage, overtime, and final wages upon termination. Failing to meet these wage standards when terminating employees can lead to legal penalties.
  • South Carolina Human Affairs Law: The South Carolina Human Affairs Law is a state law that mirrors federal protections by prohibiting discrimination in employment based on race, religion, color, sex, age, national origin, disability, or familial status. Terminating an employee on these grounds can result in legal action. 
  • South Carolina Payment of Wages Act: The South Carolina Payment of Wages Act ensures that employees are paid all wages due within 48 hours or by the next scheduled payday (no later than 30 days). This law protects terminated employees from being unfairly deprived of their earned wages. 
  • South Carolina Employment Security Law: Also a state law, the South Carolina Employment Security Law provides unemployment benefits to employees terminated through no fault of their own, ensuring financial assistance while they seek new employment. 
  • South Carolina Workers’ Compensation Law: Employees who suffer work-related injuries are protected from being terminated due to their injury or for filing a workers’ compensation claim. The South Carolina Workers’ Compensation Law ensures employees receive benefits and job protection.
  • South Carolina Whistleblower Protection Act: The South Carolina Whistleblower Protection Act protects employees who report illegal activities or violations of laws, rules, or regulations from being fired in retaliation. This ensures that employees can speak up without fear of losing their jobs.

Terminated Employee Benefits in South Carolina

Terminated employees in South Carolina can access several benefits, depending on the terms of their employment and the nature of their dismissal:

  • Final Pay: Employers must pay all owed wages to terminated employees within 48 hours or by the next regularly scheduled payday. However, the payment deadline cannot exceed 30 days from the termination date. 
  • Health Insurance Continuation: For employees who had group health insurance, employers are required to notify them about their COBRA rights. The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals to maintain their health insurance for up to 18 months after termination. However, they must pay the full premium, including the portion previously covered by the employer.
  • Unemployment Benefits: Employees who are terminated through no fault of their own may be eligible for unemployment benefits through the South Carolina Department of Employment and Workforce (DEW). To qualify, individuals must be available to work and actively seeking new employment. This temporary financial assistance can help during the job search process.
  • Severance Pay: While not mandated by South Carolina law, some employers offer severance packages as part of termination agreements. These packages can include a lump sum payment, extended benefits, or other perks, often outlined in a severance agreement. 

Layoffs in South Carolina

Layoffs in South Carolina typically occur when businesses need to downsize due to economic challenges, restructuring, or closure of operations. Unlike terminations for poor performance, layoffs are driven by broader company decisions that affect multiple employees.

South Carolina follows the federal Worker Adjustment and Retraining Notification (WARN) Act for mass layoffs. Under this law, employers with 100 or more employees must provide a 60-day notice before mass layoffs or plant closures affecting 50 or more workers. This notice allows employees to prepare for the transition by seeking other job opportunities or retraining.

While South Carolina does not have specific state regulations for layoffs beyond the WARN Act, employers are still required to ensure fair practices. Those affected by layoffs may qualify for unemployment benefits through the South Carolina Department of Employment and Workforce (DEW), which offers temporary financial assistance while they look for new employment.

Resignations in South Carolina

Resignations occur when an employee ends their employment voluntarily or is forced to resign due to work conditions. Both standard practices and state regulations govern the process for handling resignations in South Carolina.

Voluntary Resignations

Voluntary resignations happen when employees independently choose to leave their positions, often due to personal reasons, new opportunities, or dissatisfaction with their current role. While South Carolina law does not mandate employees to provide notice, it is common courtesy to give at least two weeks’ notice. Verbal resignations are also legally binding as long as they clearly indicate the employee’s intent to resign and should be confirmed in writing.

Involuntary Resignations

Involuntary resignations, also known as constructive discharge, occur when working conditions become so unbearable that an employee feels forced to resign. This situation is considered wrongful if the employer deliberately created intolerable conditions to prompt the resignation. In these cases, the resignation may be treated as a termination, and the employee could have grounds to pursue legal action.

Legal Cases Related to Wrongful Termination in South Carolina

1. Simpsonville Hotel Pays $90,000 to Settle Wrongful Termination Case

The lawsuit EEOC v. Imperial Investments Greenville, Inc. tells the story of a South Carolina Holiday Inn Express (managed by Imperial Investments Greenville) where several female employees, including Tamara Byrd, faced repeated sexual harassment from the hotel’s male general manager. Tamara Byrd, along with other women, endured sexual comments, unwanted advances, and inappropriate touching for months. After Tamara Byrd reported the harassment, not only did the hotel management fail to act, but she was also fired in retaliation for speaking up.

After legal action initiated by the U.S. Equal Employment Opportunity Commission (EEOC), the company agreed to settle, paying $90,000 to the victims and implementing new policies and training to prevent future harassment.

Key lessons learned from the case:

  • Retaliation for reporting sexual harassment is illegal under Title VII of the Civil Rights Act.
  • Employers must have transparent processes for handling harassment complaints, and failure to act can lead to costly legal consequences.
  • Implementing regular harassment prevention training and robust policies can safeguard workplaces and avoid wrongful termination claims.

2. South Carolina Nursing Home Pays $40,000 to Settle Wrongful Termination Case

The case EEOC v. Bloomfield Senior Living of Bluffton, LLC sheds light on a wrongful termination based on race at the Bloom at Belfair nursing home in South Carolina. Michelle Billups Tensley, an African-American activities director, was fired in 2014 after missing a work day for a family medical issue. Although she informed her supervisor in advance, the company claimed she didn’t speak directly to the supervisor, who was reportedly unavailable or refused her call.

The U.S. Equal Employment Opportunity Commission (EEOC) filed suit, alleging that Michelle Billups Tensley’s termination was part of a broader effort to remove African Americans from management roles at the facility. In addition to the $40,000 settlement, the nursing home agreed to implement equal opportunity training, report to the EEOC, and publicly post details about the case.

Key lessons learned from the case:

  • Lack of direct communication or availability excuses cannot be used as a reason for termination. Employers must ensure that employees can effectively communicate in situations that might lead to absence, especially in cases of prior notification.
  • Efforts to remove individuals from managerial positions based on race are illegal under Title VII of the Civil Rights Act. Employers should evaluate diversity within management to ensure discriminatory patterns do not exist.
  • Employers must maintain clear and accurate documentation to justify terminations, especially in cases where race or discrimination could be alleged. Inconsistent or weak documentation, such as failing to account for pre-announced absences, could be considered discriminatory.

3. South Carolina Department of Health and Environmental Control Pays $150,000 to Settle Wrongful Termination Lawsuit

The case Malinda Martin v. S.C. Department of Health and Environmental Control highlights the wrongful termination of a veteran nurse who was serving as the program manager for tuberculosis at the department. Martin had advised testing children for tuberculosis after an employee at Ninety-Six Primary School tested positive. However, her recommendation was ignored, and two months later, a TB outbreak occurred among the students. Facing public outrage, the department needed a scapegoat and wrongfully terminated Malinda Martin, blaming her for not acting on the tests, even though they had not approved the measures.

She sued the department and settled for $150,000.

Key lessons learned from the case:

  • Healthcare professionals like Malinda Martin, who bring serious health risks to attention, must be protected against retaliation. Terminating an employee for raising safety concerns or recommending necessary actions undermines public health and violates legal protections for whistleblowers.
  • Blaming an individual employee for decisions that were restricted by higher management can lead to costly settlements. Institutions should take collective responsibility for actions and policies rather than pinning failures on one individual.
  • By not acting on Malinda Martin’s recommendations, the Department of Health exposed itself to both public outrage and legal action. Institutions that fail to listen to their experts often face significant consequences, including reputational harm and financial liabilities.

Learn more about South Carolina Labor Laws through our comprehensive guide.

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.