06 June 2017

South Carolina law prohibits localities from mandating paid leave and other employee benefits

Effective April 5, 2017, recently enacted SB 218 prohibits South Carolina local governments from requiring employers to provide employee benefits (i.e., paid sick leave).

Under the bill, a South Carolina political subdivision may not establish, mandate, or otherwise require an employee benefit. Employee benefits are defined as anything of value that an employee may receive from an employer in addition to wages, including any health benefits, disability benefits, death benefits, group accidental death and dismemberment benefits, paid days off for holidays, paid sick leave, paid vacation leave, paid personal necessity leave, retirement benefits, and profit-sharing benefits.

According to the bill's fiscal impact statement, the South Carolina Municipal Association stated the legislation will have no effect because state municipalities currently practice the guidelines provided for under the bill.

Ernst & Young LLP insights

Several states have recently passed legislation (i.e., Arkansas, Iowa, Ohio) to halt the trend of cities/localities passing ordinances that require employee benefits such as paid sick leave for individuals working within the city's boundaries.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Advisory Services — Employment Tax Advisory
Debera Salam(713) 750-1591
Kristie Lowery(704) 331-1884
Kenneth Hausser(732) 516-4558
Debbie Spyker(720) 931-4321

———————————————
ATTACHMENT

EY Payroll News Flash

Document ID: 2017-0915