📅 2026 Update: Changes to South Carolina Overtime Laws

Since the original article was published, there have been significant changes to the overtime laws in South Carolina. The U.S. Department of Labor (DOL) has made updates that affect salary thresholds for exempt employees, which influence overtime pay.

The details below highlight these changes, but the earlier article continues further down the page.

🗓️ Update on Salary Levels

In April 2024, the DOL published a new rule to raise the salary level for exempt employees. However, this rule was vacated by the U.S. District Court for the Eastern District of Texas in November 2024.

Now, the minimum salary level for exemption stands at $684 per week, as per the 2019 rule.

💼 Highly Compensated Employees

The total annual compensation requirement for highly compensated employees is currently $107,432. This means that employees earning above this amount may be exempt from overtime pay, depending on their job duties.

📝 Determining Exemption Status

Employers must assess employees against three tests: the salary basis test, the salary level test, and the duties test. These tests help determine if an employee is exempt from receiving overtime pay under the Fair Labor Standards Act (FLSA).

⏳ Future Updates Scheduled

The DOL plans to update salary thresholds every three years. The next update is scheduled for July 1, 2027, which may lead to an increase in the minimum salary level to $844 per week.

📌 Key Takeaways

  • The minimum salary level for exemption remains at $684 per week.
  • Highly compensated employees must earn at least $107,432 annually.
  • Exemption status is determined through specific tests.
  • Future updates to salary thresholds are set for July 1, 2027.

💡 Tips for Understanding Overtime Laws

Review the details of your specific situation with an attorney. Understanding the nuances of overtime laws can be complex.

🕵️‍♂️ Know Your Rights

Employees should be aware of their rights under the Fair Labor Standards Act (FLSA). Knowing whether you qualify as exempt or non-exempt is crucial for understanding your entitlement to overtime pay.

📊 Keep Accurate Records

Employers are required to maintain detailed records of hours worked and wages paid. Accurate recordkeeping helps protect both employees and employers in case of disputes over pay or hours.

📅 Understand Workweek Definition

A workweek is defined as a fixed and regularly recurring period of 168 hours. This is important for calculating overtime pay for hours worked beyond 40 in that week.

🚨 Monitor State-Specific Laws

State overtime laws may differ from federal standards. It's essential to check with your state labor department for additional protections or regulations that may apply.

✅ Check for Exemptions

Certain employees, like executives and professionals, may qualify for exemptions from overtime pay. Make sure to understand if your job duties meet the criteria for exemption.

❓ Frequently Asked Questions

❓ What is the minimum salary to be exempt from overtime pay?

The minimum salary level for exemption under the FLSA is currently $684 per week as of November 15, 2024.

❔ How often will the salary thresholds be updated?

The DOL plans to update salary thresholds every three years, with the next update scheduled for July 1, 2027.

⚖️ Are part-time employees entitled to overtime pay?

Yes, part-time employees are entitled to overtime pay for hours worked over 40 in a workweek under the FLSA.

⏰ How is overtime calculated?

Overtime pay is calculated at a rate not less than time and one-half the regular rates of pay for hours worked over 40 in a workweek.

🗂️ What records must employers keep?

Employers are required to maintain accurate records of hours worked and wages paid to employees. This helps in any disputes regarding pay.

🔍 How do state laws affect overtime pay?

State overtime laws may provide additional protections beyond federal standards. It is essential to consult with state labor departments to understand specific regulations.

⚖️ Recent Court Cases Related to Overtime Laws

Recent court rulings have impacted overtime laws, particularly concerning exemption statuses and salary thresholds. These decisions shape how overtime pay is calculated and enforced.

You can browse more rulings on the news page to stay updated on recent court rulings.

End of October 2026 Update







A brief guide to South Carolina overtime laws



Rather than establishing its own guidelines regarding payment, the state of South Carolina follows the provisions outlined in the federal Fair Labor and Standards Act. These rules set a minimum wage for hourly compensation of $7.25 an hour. South Carolina overtime law mandates that employers must pay any employee who works in excess of 40 hours a week to pay time-and-a-half for each subsequent hour worked. If you are making minimum wage, this means you are entitled to $10.88 an hour for every hour worked past 40 hours a week. Employers who fail to compensate you in this fashion are in violation of South Carolina overtime laws.



Some dishonest employers may attempt to evade paying this compensation by claiming that you are a salaried employee. To get around South Carolina overtime law, they will pay you a fixed sum that is the same as you would receive if paid by the hour. They will then claim that since you are a salaried employee, you are not entitled to overtime compensation. However, South Carolina overtime laws do not allow employers to make this distinction at their convenience.

South Carolina Overtime Laws


While many salaried workers indeed do not qualify for overtime payments, this is unlikely to be the case if you are making minimum wage. South Carolina overtime law does not apply to people who work at primarily mental or administrative tasks that require a high degree of specialized knowledge. However, someone who is paid a low hourly wage does not qualify for salaried employee status. Any employer who attempts to convince you otherwise may be violating South Carolina overtime laws.



It is true that some employees do not qualify for overtime compensation. South Carolina overtime law does not apply to many members of the workforce. Some workers who may not be eligible for overtime compensation include:



• Salespeople who work on a commission basis



• People who work in the transportation industry, such as airline officials or taxi drivers, are often not covered by South Carolina overtime laws. If you are compensated at a fixed rate for every trip made, you are probably not entitled to overtime.



• Farm laborers



• People who have not gotten past eighth grade or completed high school may be required to attend remedial education courses. While employers must provide compensation for such training, South Carolina overtime laws do not require them to pay extra,



If you feel that your rights as an employee have been violated, you should contact the Hours and Wages division of the United States Department of Labor. This government agency is responsible for making sure every aspect of South Carolina overtime law is being properly implemented by employers. After investigating your claims, they may be able to compel employers to pay unpaid or underpaid wages.



Should this government agency decide there is no merit to your claim of a violation of South Carolina overtime law, you may decide to take private legal action. Civil litigation may be successful in obtaining the compensation you have been improperly denied.