South Carolina does not have its own minimum wage law. Because no state statute sets a higher floor, the federal minimum wage under the Fair Labor Standards Act (FLSA) governs almost all South Carolina jobs, and that rate is $7.25 per hour as of 2026. South Carolina is one of only a handful of states (along with Alabama, Louisiana, Mississippi, and Tennessee) that has never enacted a state minimum wage statute, so there is no separate "South Carolina rate" to look up and no state-level scheduled increase or inflation indexing. If the federal rate goes up, South Carolina's effective floor goes up with it; if the federal rate stays the same, South Carolina stays at $7.25.
The Rule: Federal $7.25 Is the Floor in South Carolina
Most employees who are covered by the FLSA must be paid at least $7.25 per hour. The FLSA covers the vast majority of South Carolina workers either because their employer is an "enterprise" with at least $500,000 in annual sales or because the individual employee is engaged in interstate commerce (handling goods, making out-of-state calls, processing credit-card transactions, and similar activities). In practice, that sweeps in nearly every private employer in the state.
Because South Carolina has no parallel wage statute, there is no state agency that sets or publishes a South Carolina minimum wage figure. The number that matters is the federal one. Workers should treat $7.25 as the baseline and confirm it against the U.S. Department of Labor (see below), since Congress can change it.
Tipped Employees: $2.13 Cash Wage and the Tip Credit
Servers, bartenders, and other tipped workers in South Carolina are also governed by the federal rules because the state has no tip-credit law of its own. Under the FLSA, an employer may pay a tipped employee a cash wage of as little as $2.13 per hour and take a "tip credit" of up to $5.12 per hour against the $7.25 obligation, as long as the worker's tips actually bring total earnings to at least $7.25 for every hour worked.
Key conditions apply to that tip credit:
The math has to work every week. If tips plus the $2.13 cash wage do not reach $7.25 per hour, the employer must make up the difference. The worker can never legally earn less than $7.25.
Tips belong to the employee. An employer cannot keep an employee's tips. Valid tip pools may be required among employees who customarily receive tips, but managers and supervisors cannot share in them.
Notice is required. The employer must inform the employee that it is taking a tip credit before doing so.
"Tipped employee" has a definition. It generally means someone who customarily and regularly receives more than $30 a month in tips.
If any of these conditions are not met, the employer loses the tip credit and owes the full $7.25 in direct wages.
Overtime Still Applies
Even though South Carolina has no state wage law, FLSA overtime protections cover South Carolina workers. Non-exempt employees must receive one and one-half times their regular rate of pay for hours worked over 40 in a workweek. South Carolina does not add daily overtime or any state-specific overtime rule on top of the federal standard. For tipped employees, overtime is calculated on the full $7.25 regular rate (not the $2.13 cash wage) before subtracting the tip credit, which is a point employers sometimes get wrong.
No Local Minimum Wage: State Preemption
Some workers ask whether a South Carolina city or county can set a higher local minimum wage the way places like Seattle or New York City have. In South Carolina, the answer is no. State law preempts local governments from establishing their own minimum wage or mandatory benefit requirements for private employers. South Carolina Code Section 6-1-130 bars counties and municipalities from setting a minimum wage rate that an employer would be required to pay. That means there is a single statewide floor, and no Charleston, Columbia, Greenville, or Myrtle Beach ordinance can raise it above the federal $7.25. Local governments may set wages for their own public employees, but they cannot impose a minimum on private businesses.
Common Exceptions to the $7.25 Floor
The FLSA allows several subminimum wage situations that apply in South Carolina because federal law controls here:
Youth wage. Workers under 20 may be paid a training wage of $4.25 per hour during their first 90 consecutive calendar days of employment.
Tipped employees. As described above, $2.13 cash plus tips.
Full-time students and student learners in certain programs, where the employer holds a federal certificate.
Exempt employees. Bona fide executive, administrative, professional, outside sales, and certain computer employees who meet the FLSA's salary and duties tests are not entitled to the minimum wage or overtime at all.
Independent contractors are not covered, though misclassification is common and a worker labeled a contractor may actually be an employee under the law.
How to Enforce Your Rights
Because the minimum wage in South Carolina is a federal standard, the primary enforcer is the U.S. Department of Labor, Wage and Hour Division (WHD). A worker who is paid less than $7.25, who is denied overtime, or whose tips are unlawfully withheld can file a confidential complaint with the WHD. Retaliation for filing a complaint is illegal under the FLSA. The WHD can recover back wages and, in some cases, an equal amount in liquidated damages. Workers may also bring a private lawsuit under the FLSA, generally within two years (three years for willful violations), and may recover attorney's fees.
Separately, the South Carolina Department of Labor, Licensing and Regulation (SC LLR) enforces the South Carolina Payment of Wages Act. That state law does not set a minimum wage, but it does require employers to pay the wages they have promised, to give written notice of pay terms, and to pay all wages due on time. If your employer is paying you the agreed amount but it is below $7.25, that is a federal minimum wage issue for the WHD; if your employer is failing to pay you what was promised or agreed, that is a state wage-payment issue you can raise with SC LLR.
Where to Confirm the Current Rate
Because the federal minimum wage can change when Congress acts, do not rely on a number alone. Confirm the current figure directly with the U.S. Department of Labor Wage and Hour Division, which publishes the federal minimum wage, the tipped cash wage, and overtime rules. For South Carolina-specific wage-payment questions and to verify that no state law has changed, check the South Carolina Department of Labor, Licensing and Regulation. As of 2026 the federal floor remains $7.25 and South Carolina has no higher state rate, but verifying against these official sources is the safest practice before relying on any figure.
Official South Carolina Sources
This page is based on South Carolina employment law. Rules and figures change — verify the current details directly with the official South Carolina sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside South Carolina state law.
Frequently asked questions
What is the minimum wage in South Carolina in 2026?
South Carolina has no state minimum wage law, so the federal FLSA minimum of $7.25 per hour applies to most workers. There is no higher state rate. Because Congress can change the federal figure, confirm the current rate with the U.S. Department of Labor before relying on it.
How much can a tipped employee be paid in South Carolina?
Under federal rules that govern South Carolina, an employer can pay a tipped worker a cash wage as low as $2.13 per hour and claim a tip credit of up to $5.12. But tips plus cash must reach at least $7.25 per hour; if they don't, the employer must make up the difference.
Can a South Carolina city set a higher minimum wage?
No. South Carolina law (Code Section 6-1-130) preempts counties and municipalities from setting a minimum wage for private employers. Charleston, Columbia, Greenville, and other localities cannot raise the floor above the federal $7.25 for private businesses.
Does South Carolina have its own overtime law?
No. South Carolina follows the federal FLSA standard: non-exempt employees earn 1.5 times their regular rate for hours over 40 in a workweek. There is no state daily overtime rule or any state-specific overtime requirement.
Where do I report being paid less than minimum wage in South Carolina?
File a complaint with the U.S. Department of Labor, Wage and Hour Division, which enforces the federal minimum wage that applies in South Carolina. For unpaid promised wages, the South Carolina Department of Labor, Licensing and Regulation enforces the state Payment of Wages Act.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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