Workers compensation law, rules and policy information for South Carolina

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State: South Carolina

Updated: 01-09-2019

Authority/State Rating Bureau: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362

Compulsory: Yes

Private Insurance: Allowed

Self-Insurance: Allowed

State Fund: None

Assigned Risk: Administered by NCCI – National Council on Compensation Insurance

Assigned Risk Contact Information: NCCI – National Council on Compensation Insurance – contact at: NCCI

National Council on Compensation Insurance (NCCI)
901 Peninsula Corporate Circle
Boca Raton, FL 33487-1362

Numerical Exceptions: There is an exemption for employers with fewer than 4 employees. The rule of thumb is that any employer who regularly employs four or more workers full-time or part-time is required to have workers’ compensation insurance. There are some exceptions, including agricultural employees, railroads, and railway express companies and their employees, and employers who had a total annual payroll during the previous year of less than $3,000, regardless of the number of workers employed during that period. Also exempt are Textile Hall Corporation and certain commission paid real estate agents. Although most employers must purchase workers’ compensation insurance, any employer may purchase coverage.

Individual Waivers Allowed: Yes. Limited.

Small Deductible Program Details:
Allowed: Yes – It is mandatory that insurance carriers make available
Deductible Range: $100 – $2,500
Type: Medical and Indemnity
Effect on Experience Rating: Net
Available In: Voluntary and Residual Markets
For More Information About How Deductible Programs Work

Sole Proprietor: Excluded from coverage/may elect to be included – If included,$36,700 is used as payroll for premium calculation purposes as of 7-1-11, $37,700 as of 9-1-2012, $37,700 as of 2-1-2013, $38,700 as of 9-1-2013. $39,100 as of 9-1-2014. $39,800 as of 9-1-2015. $40,800 as of 9-1-2016. $42,000 as of 4-1-2018. 

Partners: Excluded from coverage/may elect to be included – If included, $36,700 is used as payroll for premium calculation purposes as of 7-1-11, $37,700 as of 9-1-2012, $37,700 as of 2-1-2013, $38,700 as of 9-1-2013. $39,100 as of 9-1-2014. $39,800 as of 9-1-2015. $40,800 as of 9-1-2016. $42,000 as of 4-1-2018.

Corporate Officers: Included in coverage/may elect to be exempt – when included the rating payroll is banded between a minimum of $36,400 and a maximum of $145,600 as of 7-1-11, $39,000 / $150,800 as of 9-1-2012, $39,000 / $150,800 as of 2-1-2013, $39,000 / $156,000 as of 9-1-2013. $20,800 / $156,000 as of 9-1-2014. $20,800 / $161,200 as of 9-1-2015. $400 min / $3100 max per week as of 9-1-2016. $400 / $3,200 as of 4-1-2018.

LLC Members: Treated as partners

Election or Rejection of Coverage Form: South Carolina Corporate Officer Rejection Form

Other South Carolina Workers Compensation Forms: South Carolina Workers Compensation Forms

Notes About Forms: Be sure to check with your insurance company for additional forms they may use for South Carolina.

Contractors: If the subcontractor does not carry workers’ compensation insurance, then the owner or the principal contractor would be liable just as if the subcontractor’s employee was one of their employees.

Special Notes: The definition of an employee is quite broad. It includes full-time and part-time workers, adults and minors, and others who have been hired to do certain jobs. The critical test is the degree of control the employer exercises over the worker. The law also recognizes “statutory employees.” These are employees who work for a subcontractor who may be working for a business or another contractor. Employers should inquire whether or not a subcontractor working for them has workers’ compensation insurance, regardless of the number of employees employed by the subcontractor. If the subcontractor does not, the subcontractor’s injured employees would be covered under the employer’s workers’ compensation insurance.

Experience Rating Eligibility: South Carolina employers will receive an experience modification rate or EMR once they meet one of these triggers:

  • $9,000 in policy premium is generated during the last year or last two years.
  • $4,500 is the average policy premium generated for more than two years.

South Carolina Workers Compensation Subrogation: South Carolina state statute 42-1-560 addresses the subrogation of workers compensation for this state. This statute is known as; Right to compensation not affected by liability of third party. It’s found under South Carolina Title 42 Chapter 1 and can be viewed online by using the link below. Once at this link just scroll down to 42-1-560.

South Carolina Statute Of Subrogation

Treatment of South Carolina Workers Working In Other States; Other States Workers Working In South Carolina, Extraterritorial, Reciprocity and Non-Compliance: If South Carolinae workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in South Carolina statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It’s reciprocity that governs coverage for a worker from another state who is working temporarily in South Carolina. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We’ve provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic and to be sure of how exteraterritorial and reciprocity apply for your state!

  • Extraterritorial:
    • Provisions: Yes
    • Duration: Not Specified
  • Reciprocity:
    • Allowed: Yes – However statute indicates that reciprocity will apply an amount received from the primary state in an offset manner aganinst the amount due under South Carolina statute. Please confirm how reciprocity applies in South Carolina with the Authority for South Carolina.
  • Specific Statute or Reference: South Carolina Statute 42-15-10
  • For More Information Contact: South Carolina Workers Compensation Commission

Regulated By: South Carolina Workers Compensation Commission

South Carolina Workers Compensation Commission
P.O. Box 1715
1612 Marion Street
Columbia, SC 29202-1715
Phone 803-737-5700 Fax 803-737-5768

Workers compensation statute can be found here:

verify workers compensation coverage South Carolina Workers Compensation Statute

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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.

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