Current Minimum Wage on Tipped Workers in South Carolina

1. What is the current minimum wage for tipped workers in South Carolina?


As of 2021, the minimum wage for tipped workers in South Carolina is $2.13 per hour, with the expectation that tips will bring their total earnings up to at least the federal minimum wage of $7.25 per hour.

2. Is there a difference between the tipped minimum wage and regular minimum wage in South Carolina?


Yes, there is a difference between the tipped minimum wage and regular minimum wage in South Carolina.

The regular minimum wage in South Carolina is $7.25 per hour, which is the same as the federal minimum wage. This applies to all employees who do not receive tips as a significant portion of their income.

The tipped minimum wage in South Carolina is $2.13 per hour, which is lower than the regular minimum wage. This rate can only be paid to employees who regularly receive gratuities (tips) from customers. The employer must ensure that when combined with the tips received, this rate equals or exceeds the regular minimum wage of $7.25 per hour.

If an employee does not earn enough through tips to reach the regular minimum wage, the employer must make up the difference so that they are earning at least $7.25 per hour. This payment is known as a “tip credit.”

It’s important to note that if an employee performs work that does not usually involve receiving tips (such as preparing food or cleaning), they must be paid at least the regular minimum wage for those hours worked.

Overall, employees who receive tips may potentially earn less than those who do not receive tips, but employers must ensure that these workers still make at least the regular minimum wage when combining their hourly rate and tips received.

3. How much do tipped workers make per hour in South Carolina?


The current minimum wage for tipped workers in South Carolina is $2.13 per hour. However, if the combination of tips and wages does not equal the federal minimum wage of $7.25 per hour, the employer is required to make up the difference.

4. Has the minimum wage for tipped employees increased in South Carolina recently?


No, the minimum wage for tipped employees in South Carolina has not increased recently. It has remained at $2.13 since 1991.

5. Are there any pending changes to the tipped minimum wage in South Carolina?


As of now, there are no pending changes to the tipped minimum wage in South Carolina. The current rate of $2.13 per hour has not been changed since 1991. However, there have been calls for an increase from various advocates and lawmakers in recent years, but no legislation has been passed to change the tipped minimum wage in the state.

6. Can a tipped worker afford a living wage in South Carolina?


No, a tipped worker in South Carolina would struggle to afford a living wage. The current minimum wage for tipped workers in South Carolina is $2.13 per hour, which is well below the federal minimum wage of $7.25 per hour. This means that many tipped workers rely heavily on tips to make a living.

According to MIT’s Living Wage Calculator, the living wage for a single adult in South Carolina is $11.64 per hour, which is significantly higher than the state’s minimum wage for tipped workers. This means that even if a worker receives tips, they may still struggle to cover their basic living expenses.

Additionally, tipped workers often face unpredictable and fluctuating income due to factors such as slow business periods and variable tip amounts. This makes it difficult for them to budget and plan their expenses.

Overall, while some tipped workers may earn enough through tips to support themselves, it is unlikely that they could consistently earn enough to afford a true living wage in South Carolina without significant financial strain.

7. How does South Carolina’s minimum wage for tipped employees compare to neighboring states?


South Carolina’s minimum wage for tipped employees is the same as the federal minimum wage for tipped employees, which is $2.13 per hour. This is lower than neighboring states Georgia and North Carolina, which have a minimum wage of $2.30 and $2.35 per hour, respectively. However, it is slightly higher than Tennessee and Alabama, which have a minimum wage of $2.13 per hour for tipped employees but also allow employers to pay below this rate with proper documentation.

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in South Carolina?


Yes, employers are required to make up the difference if a tipped worker’s wages plus tips do not reach the state’s standard minimum wage of $7.25 per hour. If an employee’s tip income combined with their hourly wages does not equal at least $7.25 per hour, the employer must make up the difference.

For example, if a tipped worker earns $5.00 per hour in tips and receives the state minimum wage of $2.13 per hour from their employer, their total earnings would only be $7.13 per hour. In this case, the employer would need to pay them an additional $0.12 per hour to meet the state minimum wage requirement.

It is important to note that this provision only applies to tipped employees who regularly receive tips in the course of their work, such as restaurant servers or bartenders. Employers are still responsible for ensuring that all employees are paid at least the state minimum wage for every hour worked regardless of whether they receive tips or not.

9. Do cities within South Carolina have their own separate tipped minimum wage rates or is it consistent throughout the state?

The tipped minimum wage rate in South Carolina is consistent throughout the state, with all cities falling under the same state law. Currently, the tipped minimum wage in South Carolina is $2.13 per hour, which is also the federal tipped minimum wage rate. Employers are required to make up the difference if an employee’s tips do not equal at least the full minimum wage rate of $7.25 per hour.

10. Has there been any discussion of increasing the minimum wage for tipped employees in South Carolina?


Yes, there has been some discussion about increasing the minimum wage for tipped employees in South Carolina. In 2019, a bill was introduced in the state legislature to raise the minimum wage for tipped workers from $2.13 to 50% of the state’s regular minimum wage, which at the time was $7.25. However, the bill did not pass and there have been no significant developments or changes since then.

Some advocacy groups have also called for an increase in the minimum wage for tipped workers, arguing that the current rate is insufficient and leaves these workers vulnerable to low pay and inconsistent income. They argue that a higher minimum wage would improve economic stability for these workers and help reduce poverty rates.

However, business groups and some lawmakers have opposed any increases to the tipped minimum wage, citing concerns about potential negative impacts on businesses, such as increased labor costs. They argue that employers already have to ensure that tipped workers earn at least the regular minimum wage when tips are factored in and that raising the tipped minimum wage could lead to job losses or reduced hours for these workers.

At this time, there does not appear to be any pending legislation or concrete plans to increase the minimum wage for tipped employees in South Carolina. Any potential changes would likely involve extensive debates and discussions among various stakeholders before any action is taken.

11. Does South Carolina have a different minimum wage for servers versus other types of tipped workers?


Yes, South Carolina has a separate minimum wage for servers and other types of tipped workers. The current minimum wage for tipped employees is $2.13 per hour, which is lower than the regular minimum wage of $7.25 per hour. This lower rate is allowed because it is assumed that tipped workers will make up the difference in tips from customers. However, if an employee’s tips do not bring them up to the regular minimum wage, their employer is required to make up the difference.

12. How does South Carolina’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?


As of 2021, South Carolina’s minimum wage for tipped employees is $2.13 per hour, which is also the federal standard. This rate has not been increased since 1991 and remains one of the lowest in the nation.

In comparison, neighboring states North Carolina and Georgia also have a tipped minimum wage of $2.13 per hour. However, Tennessee has a slightly higher rate at $2.30 per hour, while Florida’s is $5.63 per hour.

Overall, South Carolina’s tipped employee minimum wage is significantly lower than most other states in the country and falls far below the federal poverty line.

13. In South Carolina, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?


No, employers in South Carolina are not allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees. According to state law, all employees must be paid at least the federal minimum wage of $7.25 per hour, regardless of whether they receive tips or not. Employers are required to pay this standard minimum wage in addition to any tips received by the employee.

14. Is there a plan to increase the tip credit percentage in South Carolina, which currently has one of the lowest rates nationwide?


There is currently no plan to increase the tip credit percentage in South Carolina. The state’s current rate is set by state law and would require legislative action to change. Any potential changes to the tip credit rate would likely be part of a larger debate about minimum wage and labor laws in the state.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in South Carolina?


Yes, certain industries or professions in South Carolina may be exempt from paying the state’s established tip credit rate. These include:

1. Employees who regularly receive more than $30 a month in tips: If an employee’s monthly tips exceed $30, their employer is not allowed to take a tip credit and must pay them at least minimum wage.

2. Employees in the farming or agricultural industry: Farming or agricultural workers have their own minimum wage requirements set by the state’s Department of Labor, Licensing and Regulation (LLR).

3. Non-profit organizations: Non-profit organizations that employ workers for charitable, religious, or educational purposes are exempt from the state’s minimum wage and tip credit requirements.

4. Seasonal employees: Seasonal employees who work less than 90 days during a calendar year are exempt from the state’s minimum wage and tip credit requirements.

5. Domestic service workers: Workers employed in domestic service, such as babysitters or housekeepers, do not have to be paid the state’s minimum wage.

6. Certain apprentices and learners: Under federal law, apprentices and learners may be paid less than the state’s minimum wage for the first 90 days of their employment.

Employers should consult with the LLR to determine if they qualify for these exemptions before paying their employees below the state’s established tip credit rate.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?


It depends on the specific laws and governing bodies of [State]. Some states have laws that explicitly prohibit local governments from setting a separate tipped worker minimum wage rate, while others allow for such legislation to be passed at the local level. It is important to research the current laws and regulations in [State] to determine if legislators are able to override local laws regarding tipped worker minimum wage rates.

17. Has South Carolina recently adjusted its tip pooling laws affecting server wages?


Yes, South Carolina passed a new law in 2019 that allows for tip pooling among servers and other front-of-house employees, as long as the employers do not take any portion of the shared tips. This law also provides an exception for certain managers and supervisors who may participate in tip pooling under specific circumstances.

18. How do South Carolina’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?


According to data from the Bureau of Labor Statistics, the current minimum wage in South Carolina for non-tipped workers is $7.25 per hour. For tipped workers, the minimum wage is $2.13 per hour, as long as tips bring their total earnings up to at least $7.25 per hour.

For restaurant personnel specifically, the minimum wage is also $2.13 per hour, but tips must bring their total earnings up to at least $5.12 per hour. Some restaurants may have higher hourly wages for non-tipped workers and tipped workers based on factors such as location and job position.

Overall, South Carolina’s minimum wage for both non-tipped and tipped restaurant workers falls below the federal standard of $7.25 per hour for non-tipped workers and below the recommended amount of $15 per hour for all employees set by many advocates for livable wages.

19. In South Carolina, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?

Yes, separate restaurants and other establishments may be categorized differently for the purpose of applying differing hourly rates for employees who receive tips. The two main categories are “tipped employees” and “non-tipped employees.”

Tipped employees are those who customarily and regularly receive more than $30 in tips per month. They may be paid a lower hourly wage of $2.13 as long as their total earnings (including tips) equal at least the federal minimum wage of $7.25 per hour.

Non-tipped employees are those who do not customarily or regularly receive tips. They must be paid at least the federal minimum wage of $7.25 per hour.

However, if an employee’s base rate plus tips does not equal at least the federal minimum wage, the employer must make up the difference in order to comply with minimum wage laws.

Some establishments might have both tipped and non-tipped positions, so they would need to pay different hourly rates for each position according to these guidelines.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?


One potential source for information on each state’s approach to tipped worker minimum wage may be the Department of Labor’s Wage and Hour Division website. They have a section specifically dedicated to minimum wage laws, which includes links to state-specific resources and contact information for state labor offices.

Additionally, organizations such as the National Conference of State Legislatures or the National Employment Law Project may also have resources available on this topic.