Understanding Workers’ Compensation Exemptions
in South Carolina
Learn which workers are eligible for workers’ comp after an injury in SC and what to do if your employer doesn’t have the required coverage
Workers’ compensation laws exist to protect employees and ensure that businesses provide certain benefits in the event of workplace injuries.
However, not every worker qualifies for workers’ compensation benefits, so it’s important to understand which employers must carry workers’ comp insurance, who’s eligible for benefits, and what to do if you’re injured and your employer doesn’t have the required coverage.
In this article, we’ll provide an overview of workers’ compensation exemptions in South Carolina and help you understand the steps you can take to get the compensation you deserve after a work-related injury or occupational disease.
What is a workers’ compensation exemption?
A workers’ compensation exemption allows certain businesses or individuals to opt out of the legal requirement to carry workers’ compensation insurance. This means they are not required to provide coverage for employees in case of work-related injuries or health conditions.
Exemptions typically apply to specific groups, such as small businesses with few employees, independent contractors, or certain types of workers, depending on the laws of each state.
Who is required to have workers’ comp in SC?
In South Carolina, most employers are required to have workers’ compensation insurance if they have 4 or more employees, whether full-time or part-time, and an annual payroll of more than $3,000. While businesses with fewer than 4 employees can still opt to provide coverage voluntarily, they are not obligated to do so.
So, who is exempt from workers’ comp in South Carolina?
While the vast majority of workers are entitled to benefits, there are some types of workers who are exempt, meaning they don’t qualify for workers’ comp. They include:
- Independent contractors. Independent contractors are not considered employees under workers’ compensation laws, meaning they are responsible for their own insurance and coverage for any workplace injuries.
- Agricultural employees. Workers in agricultural operations, such as farming, are often exempt from workers’ compensation.
- Agricultural salespeople who are paid on commission. Similar to real estate agents, agricultural salespeople who work on commission are often considered independent contractors and are exempt from workers’ compensation.
- Casual employees. Workers who work on a sporadic or irregular basis,without consistent schedules or expectations may be exempt from workers’ compensation coverage.
- Business owners. Sole proprietors and partners are generally not covered under workers’ compensation unless they choose to opt into their company’s policy.
- Commission-paid real estate agents. Real estate agents who work as independent contractors and earn commissions are generally not covered by workers’ compensation. These agents are responsible for securing their own insurance coverage.
- Railroad employees. Railroad workers are covered under the Federal Employers Liability Act (FELA), a separate federal law, so they are exempt from state workers’ compensation.
- State and federal employees. Like railroad workers, these workers are generally covered under separate state or federal programs, so they are exempt from South Carolina’s workers’ compensation laws.
- Owner-operators motor carriers. Individuals who own and operate their own motor carriers are not required to have workers’ compensation insurance under South Carolina law.
Please note that employers sometimes incorrectly classify employees as independent contractors to avoid paying for workers’ compensation insurance.
If you believe you have been misclassified or are unsure if you qualify for workers’ comp, consider reaching out to an experienced workers’ compensation attorney who can help you understand your rights.
What is an independent contractor in South Carolina?
In South Carolina, several key factors help determine whether someone is classified as an independent contractor:
- Control. An independent contractor typically has control over how they perform their work. If the employer dictates how, when, and where the work is done, the person may be considered an employee rather than an independent contractor.
- Equipment. Independent contractors usually provide their own tools and equipment for the job. If the employer supplies these, it could indicate an employee relationship.
- Payment method. Independent contractors are generally paid per job or project rather than receiving regular wages or salaries like employees.
- Right to fire. If the employer can terminate the worker at any time without significant cause, this points toward an employee relationship. Independent contractors typically work under contracts that outline specific conditions for termination.
These factors are collectively considered when determining the independent contractor status, focusing on the level of independence and control the worker maintains over their work.
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How do I know if my employer has workers’ comp insurance?
There are various methods to confirm whether your employer has workers’ compensation insurance. Below are a few things you can try:
- Check online. Use this free online tool to help you determine if your employer has workers’ comp insurance. Simply enter your employer’s name and the state where you work to confirm their insurance status.
- Check your pay stubs or employment documents. Sometimes, companies include workers’ compensation insurance information on pay stubs or in employment contracts. Look for any mention of workers’ comp coverage or insurance provider details.
- Speak with your HR department. If your company has a human resources department, they should be able to verify if workers’ compensation insurance is provided and give you details about the coverage.
If you still can’t verify your employer’s status after trying these methods, consider contacting the South Carolina Workers’ Compensation Commission (SCWCC) directly. You can contact them by phone at (803) 737-5700, email them at [email protected], or visit their office in Columbia, South Carolina.
What can I do if I’m injured at work and my employer doesn’t have the required workers’ comp coverage?
In South Carolina, injured employees who are eligible for workers’ comp have the right to benefits, including medical expenses, lost wages, and compensation for permanent disabilities, even if their employers lack the required insurance.
The South Carolina Workers’ Compensation Commission (SCWCC) has a fund in place called the Uninsured Employers’ Fund (UEF) that provides benefits to workers whose employers are illegally uninsured. To access these funds, it’s important to take the steps to file a claim, including submitting Form 50, and report the lack of coverage to the SCWCC as soon as possible.
If you find yourself in this unfortunate situation, it’s highly recommended that you consult with a local Columbia workers’ compensation attorney who can help you navigate the process and explore all your potential legal options for compensation.
Unsure if you qualify for SC workers’ comp or having trouble getting the benefits you deserve?
Workers’ compensation laws can be complex, especially when it comes to determining eligibility, exemptions, and coverage issues. If you’re unsure whether you qualify for workers’ compensation in South Carolina or are having trouble securing the benefits you deserve, it’s crucial to seek legal guidance.
At Smith, Born, Leventis, Taylor & Vega, our experienced Columbia work injury attorneys understand the frustration that arises when dealing with work-related injuries, especially if you’re misclassified as an independent contractor or your employer doesn’t have the required insurance.
That’s why we offer free consultations to help you understand your rights and empower you to make informed decisions about your case. We’ll work tirelessly to ensure you get the benefits you deserve, even in these challenging situations.
