State law · For employers
South Carolina background check laws for employers
What South Carolina law says about background checks for employment, beyond the federal Fair Credit Reporting Act (FCRA). Each section shows the rule, who it covers, its exceptions and the law it comes from.
Reviewed
Primary sources
6 laws cited
On this page
At a glance
The South Carolina rules on each topic, in one line. Federal law applies to every topic.
| Topic | South Carolina rule |
|---|---|
| Criminal history questions | No state rule. Federal law applies. |
| Limits on what a report includes | No state rule. Federal law applies. |
| Sealed and expunged records | No automatic sealing for most records. Expungement is by application for listed offenses under Title 17 ch. 22 art. 9. |
| Credit checks | No state rule. Federal law applies. |
| Salary history | No state rule. Federal law applies. |
| Cannabis | No state rule. Federal law applies. |
| Drug testing procedures | No statute constrains private-employer testing procedures. § 41-1-15 lets an employer set up a voluntary drug-prevention program (tied to the § 38-73-500 workers’ compensation premium credit) with a policy statement and employee notice;… |
| State consumer reporting law | No full FCRA analogue and no extra employer disclosure, investigative-report rules or CRA registration. |
Sealed and expunged records
Who it covers: All employers except criminal justice agencies.
In force since: January 14, 2026
No automatic sealing for most records. Expungement is by application for listed offenses under Title 17 ch. 22 art. 9. Once expunged, employers (other than criminal justice agencies) may not use the information against an employee, and an employer that hires someone with an expunged record is shielded from claims based on it. Two 2026 acts widen relief: Act 260 requires dismissal and expungement of certain pre-2024 unlawful handgun-possession charges (eff. Jan. 14, 2026), and Act 248 allows expungement of multiple misdemeanor fraudulent-check convictions after ten years and requires destruction of mistaken-identity arrest records (eff. June 25, 2026).
Exceptions
- Criminal justice agencies.
- Law enforcement and prosecution agencies keep sealed copies for a limited period (§ 17-1-40(B)-(C)).
S.C. Code § 17-22-960 · S.C. Code § 17-22-960 · S.C. Code § 17-1-40(B)(1)(a) · S.C. Act No. 260 of 2026 (S.136), § 1 amending § 17-1-65(B) · S.C. Act No. 248 of 2026 (S.428), § 1 adding § 34-11-90(f)
Drug and alcohol testing procedures
Who it covers: Employers that choose to establish a program under § 41-1-15.
No statute constrains private-employer testing procedures. § 41-1-15 lets an employer set up a voluntary drug-prevention program (tied to the § 38-73-500 workers’ compensation premium credit) with a policy statement and employee notice; test information is confidential but usable in civil or administrative proceedings and never in a criminal case against the employee.
The state consumer reporting law
Who it covers: Consumer reporting agencies (and any ‘other person’ who violates the chapter); consumers residing in South Carolina.
In force since: December 31, 2008
No full FCRA analogue and no extra employer disclosure, investigative-report rules or CRA registration. Title 37 ch. 20 adds a state accuracy-dispute duty for consumer reporting agencies. The state definition of ‘consumer report’ expressly includes employment purposes. On a written dispute the agency must reinvestigate free of charge and admit or deny the inaccuracy in writing within thirty days. Willful violations carry treble damages or $3,000 per incident, negligent violations actual damages or $1,000, plus fees.
S.C. Code § 37-20-110(3)(b) · S.C. Code § 37-20-170(B) · S.C. Code § 37-20-170(D)
Where federal law alone applies
We found no South Carolina rule for private employers on these topics. The FCRA and other federal laws still apply.
- Criminal history questions
- Limits on what a report includes
- Credit checks
- Salary history
- Cannabis
Adverse action notices
Before you reject or act against someone because of a background check report, the FCRA requires a pre-adverse action notice, a wait, and then a final notice. The adverse action letter generator writes both notices and adds the South Carolina requirements where they apply.
The waiting period calculator gives the date under the federal rule.
Paperwork at hire
Besides the federal Form I-9 and W-4, South Carolina sets these for each new hire.
- State withholding. Have each new hire complete and sign the SC W-4; the federal W-4 does not set South Carolina withholding. Form SC W-4
- New hire report. Report each new hire to South Carolina within 20 days. State new hire reporting
- Notices at hire. Terms of Employment Notice (written notice of hours, wages, payday and deductions) (5 or more employees).
- E-Verify. Enroll in E-Verify and verify every new employee within three business days after hire; employ the new hire provisionally until verified.
Build the new hire checklist for South Carolina, with city rules, special cases and a due date for each item.
Sources
- S.C. Code § 17-22-960
- S.C. Code § 17-1-40(B)(1)(a)
- S.C. Act No. 260 of 2026 (S.136), § 1 amending § 17-1-65(B)
- S.C. Act No. 248 of 2026 (S.428), § 1 adding § 34-11-90(f)
- S.C. Code § 41-1-15(A)
- S.C. Code § 37-20-110(3)(b)
Last reviewed · General information, not legal advice.
After the hire
Once a background check clears, payroll and onboarding come next. Rippling (paid link) runs payroll, benefits and onboarding from one employee record.