Employment Practices Liability Insurance in South Carolina

South Carolina at a glance

Governing statute

SC Human Affairs Law

Applies to employers with fewer workers than the federal Title VII 15-employee threshold.

Enforcement agency

SC Human Affairs Commission

Investigates complaints and can issue a right-to-sue notice.

Cross-filing practice

Frequent EEOC cross-filing

SCHAC complaints are often dual-filed with the federal EEOC.

Wrongful discharge doctrine

Public-policy exceptions to at-will employment

Covers terminations tied to protected activity like workers' comp filings.

The South Carolina Human Affairs Law

The South Carolina Human Affairs Law prohibits employment discrimination based on protected characteristics and generally covers employers with fewer employees than the federal Title VII standard of 15, extending state-level protection to a meaningful number of smaller South Carolina businesses. This means a small South Carolina employer that assumes it's shielded from discrimination claims by its size may still be fully subject to state law even if it falls outside federal Title VII coverage.

The law covers the range of employment decisions typically at issue in discrimination cases, including hiring, discipline, promotion, and termination, and applies across the state's private and public employers that meet its coverage threshold.

The Human Affairs Commission complaint process

Employees generally file a complaint with the South Carolina Human Affairs Commission (SCHAC), which investigates, may attempt conciliation, and can issue findings that allow a case to move toward a hearing or a right-to-sue notice permitting the employee to file in court. SCHAC complaints are often cross-filed with the federal EEOC, giving employees the option to pursue relief under both state and federal law where the facts support it.

Because SCHAC generally investigates before a case can proceed further, South Carolina employers typically have an administrative opportunity to present their position and supporting documentation before litigation begins.

South Carolina-specific exposure notes

South Carolina has a growing services and hospitality workforce, and wage-and-hour claims under federal law, along with disputes over classification of tipped and seasonal employees, frequently accompany discrimination or retaliation allegations in the state. South Carolina courts also recognize certain public-policy exceptions to at-will employment, meaning a termination that appears to punish an employee for exercising a legal right — such as filing a workers' compensation claim — can generate its own wrongful termination exposure separate from a Human Affairs Law claim.

What EPLI covers and staying prepared

Employment practices liability insurance generally covers defense costs and covered damages for claims of discrimination, harassment, wrongful termination, and retaliation, subject to the policy's terms and exclusions. South Carolina employers can support a stronger defense by documenting the specific reasons for hiring, discipline, and termination decisions, maintaining a clear and consistently applied anti-harassment policy, and preserving records of any workers' compensation or protected-activity history separate from performance files.

Who we write this for in South Carolina

Employment practices liability FAQs for South Carolina