South Carolina Minimum Wage 2026: Why It's the Federal $7.25

South Carolina is one of the few states with no minimum wage law of its own. Employers covered by the federal Fair Labor Standards Act have to pay at least the federal rate, $7.25 an hour [1]. The state does have its own law on how and when you get paid, and it’s stronger than many people expect.

Why the federal rate applies

The U.S. Department of Labor lists South Carolina as having “no state minimum wage law.” Employers subject to the FLSA must pay the federal $7.25 [1]. That number has no scheduled increase, so 2027 stays the same unless Congress acts.

Most South Carolina workers are covered. The FLSA reaches any business with at least $500,000 a year in sales, plus hospitals, schools and public agencies of any size. Workers at smaller businesses can still be covered on their own if their job involves interstate commerce, such as handling out-of-state goods or calls [3].

Cities and counties can’t go higher

State law bars cities, counties, school districts and other local governments from requiring a minimum wage above the federal rate [4]. There’s one exception: a local government can set wage rates in its own contracts with vendors [4]. Private employers anywhere in the state follow the same federal floor.

Tipped workers

A tipped employee is someone who customarily gets more than $30 a month in tips [2]. Employers can pay these workers as little as $2.13 an hour in cash and count up to $5.12 an hour of tips toward the minimum [2].

The total still has to reach $7.25 for every hour. If tips fall short, the employer must make up the difference. Employers have to tell you in advance if they’re taking the tip credit, and you keep your tips except for a valid tip pool [3].

Lower rates and exemptions

Federal law allows a few lower rates and exemptions [3]:

• Youth wage: workers under 20 can be paid $4.25 an hour for their first 90 consecutive calendar days. Employers can’t push out other workers to use this rate.
• Students and learners: some full-time students, student-learners and workers with disabilities can be paid less, but only with a certificate from the Wage and Hour Division.
• Exempt jobs: executive, administrative and professional employees, outside salespeople, some seasonal amusement and recreation workers, workers on small farms, and casual babysitters, among others.

Exemptions are narrow. A job title alone doesn’t make someone exempt [3].

South Carolina’s Payment of Wages Act

The state law doesn’t set a minimum, but it protects the wages you were promised [5]:

• Written pay terms. At hiring, employers must tell you in writing your normal hours, pay rate, payday and deductions. Changes need 7 days’ written notice, except raises [5]. This applies to employers with five or more workers [5].
• Deductions. An employer can’t hold back pay unless the law allows it or you got written notice of the deduction [5].
• Final paycheck. If you leave or are let go, you must be paid within 48 hours or by the next regular payday, and no later than 30 days [5].
• Pay stubs. Each payday, you get an itemized statement of gross pay and deductions [5].

If you’re paid less than you’re owed

Below minimum wage or unpaid overtime: file with the U.S. Department of Labor’s Wage and Hour Division. Call 1-866-487-9243. Complaints are confidential, and your employer can’t retaliate against you for filing [7]. Under federal law, you can recover back wages plus an equal amount in damages, generally for 2 years back, or 3 years if the violation was willful [3].

Promised wages that weren’t paid: file a written complaint with the director of the S.C. Department of Labor, Licensing and Regulation [5]. LLR’s Wage Complaint Form is on its website [6]. The agency can investigate and try to settle the claim through mediation [5].

Sue your employer. Under the Payment of Wages Act, you can sue for three times the unpaid wages, plus costs and reasonable attorney fees. The deadline is three years after the wages were due [5].

Other states

Comparing South Carolina with its neighbors? See the minimum wage in every state on BestAmerica.