Four. South Carolina generally requires workers compensation for businesses that regularly employ four or more people in the state. Part-time workers and family members count toward the four. Businesses with an annual payroll under $3,000, casual employees, agricultural employees and a few other groups are exempt.
The rule
The South Carolina Workers' Compensation Commission says that, as a general rule, businesses that regularly employ four or more employees within South Carolina must maintain workers compensation coverage. The Commission also says part-time workers and family members are counted as employees.
Exemptions
The Commission lists exemptions for businesses with fewer than four employees, businesses with an annual payroll of less than $3,000, casual employees, agricultural employees, state and county fair associations, railroads and railway express companies, federal employees, owner-operator drivers, and certain real estate agents paid by commission.
What happens without required coverage
South Carolina Code Section 42-5-40 sets a fine of $1 for each employee for each day of refusal or neglect, at least $10 and no more than $100 a day. During that time the employer is liable to an injured employee either for compensation or in a lawsuit, and can't rely on the usual defenses. Under Section 42-5-45, a willful refusal is a misdemeanor punishable by a fine of $100 to $1,000, 30 days to six months in jail, or both. If the state's Uninsured Employers' Fund pays an injured worker's claim, Section 42-7-200 gives it a lien on the employer's assets for what it paid.
North Carolina businesses working in South Carolina
North Carolina's threshold is three or more regularly employed, and South Carolina's is four, so the rules don't line up neatly. If your crew crosses the line for jobs in Fort Mill, Rock Hill or along the Grand Strand, ask us to check your policy's other-states coverage before the work starts. If you're close to four employees, keep a simple monthly count that includes part-time and family workers, since the Commission counts them.
How we help
We're licensed in South Carolina and North Carolina. We'll confirm whether you're required to carry coverage, place it if you are, and explain how payroll and the year-end audit set the final premium. If your business also works in North Carolina, we can look at both states together.
In short
- Businesses regularly employing four or more in South Carolina generally need workers comp.
- Part-time workers and family members count, according to the Commission.
- Exemptions include payroll under $3,000, casual and agricultural employees.
- Fines run $1 per employee per day, $10 to $100 a day, with possible misdemeanor charges.
Related questions
- How many employees before I need workers comp in NC?
- How many employees before I need workers comp in Virginia?
- What is the penalty for not having workers comp in NC?
- Do subcontractors need workers comp in NC?
Coverage pages
- South Carolina Business Insurance
- North Carolina Business Insurance
- Charlotte Business Insurance
- Shallotte Business Insurance
Talk to us
Every situation is a little different. If you want someone to look at your own policy, call us at (910) 791-1011 or start a quote online. We're an independent, family-owned company founded in 1977, with eight offices in North Carolina, and we're licensed in North Carolina, South Carolina, Virginia and Maryland.
Sources
- SC Workers' Compensation Commission, Employer FAQs (who must carry coverage in South Carolina, who counts, exemptions)
- S.C. Code Title 42 Chapter 5, Sections 42-5-40 and 42-5-45 (fines, liability and misdemeanor for not securing coverage)
- S.C. Code Section 42-7-200 (Uninsured Employers' Fund and lien)
This page is general information, not a coverage determination or legal advice. Policies, rules and availability vary and change. Review your own policy or talk to your advisor.