South Carolina Labor & Employment
South Carolina imposes a strict work-authorization rule, and worker classification is scrutinized on every job. This chapter covers E-Verify and the employee-versus-contractor test.
E-Verify
South Carolina's Illegal Immigration Reform Act requires all private employers to enroll in and use the federal E-Verify program to confirm each new hire's work authorization. This is stricter than federal law, which does not mandate E-Verify for most private employers.
Employee versus independent contractor
A worker whose schedule, tools, and methods the contractor controls is an employee under the IRS common-law test, regardless of a 1099. Misclassifying an employee as an independent contractor exposes the contractor to back FICA, FUTA, and unemployment taxes plus penalties.
State-specific details
State exam facts
- State regulator
- South Carolina Contractor's Licensing Board (CLB), Department of Labor, Licensing and Regulation (LLR)
- Passing score
- 70%
- Scored questions
- 50
- Time limit
- 125 minutes
Does South Carolina require a state contractor license?
Yes. The South Carolina Contractor's Licensing Board (CLB), within LLR, licenses commercial contractors under S.C. Code Title 40, Chapter 11. A commercial license is required when the cost of the work exceeds $10,000 (after Act H.4115 of 2023).
What is on the South Carolina Business Management and Law exam?
The Business Management and Law exam is 50 questions, 125 minutes, and requires 70% to pass. Financial Groups I through V tie bid limit, working capital, net worth, and bond together (Group I $100,000 up to Group V unlimited), and applicants qualify by net worth or working capital.
What extra rules apply to South Carolina contractors?
A commercial CLB license also authorizes residential work, and a GC-Building contractor may self-perform ancillary specialty work only up to about 20% of project cost. The E-Verify requirement and the NPDES construction stormwater permit (one acre or more) also apply.
Sources: https://llr.sc.gov/clb/