South Carolina classifies gig workers as independent contractors or employees using the traditional common-law “control test,” focusing on behavioral control, financial control, and relationship type, without adopting ABC tests like California’s AB5 or recent DOL rule changes as of 2026. Gig platforms like Uber or DoorDash typically treat drivers as contractors exempt from minimum wage, overtime, and benefits under state law, though misclassification lawsuits test these boundaries. No gig-specific statutes exist, leaving workers without mandated protections unless reclassified.
Classification Factors
Courts and the South Carolina Workers’ Compensation Commission assess:
- Behavioral control: Instructions on how, when, or where to work favor employee status; gig workers’ autonomy (e.g., setting schedules) supports contractor classification.
- Financial control: Unreimbursed expenses, investment in tools, and payment by job (not salary) indicate contractors.
- Relationship: No benefits, written contracts, or permanent ties lean toward contractor status.​
Key Implications
Independent contractors lack workers’ compensation (unless opted in), unemployment insurance, or FLSA overtime, but must handle self-employment taxes via 1099 forms. Recent bills like 2025’s overtime proposals (H 4751) target general wages without gig carve-outs, maintaining flexibility for platforms. Federal DOL guidance urges economic realities tests, pressuring SC courts toward employee status for dependent gig workers.​
Litigation Trends
Gig misclassification suits rise nationally, with SC following suits alleging platforms exert control via algorithms and ratings; outcomes hinge on facts, not blanket rules. Employees gain protections like anti-discrimination under Title VII (15+ workers), while contractors negotiate protections contractually. No 2026 state reforms mandate reclassification, preserving SC’s pro-business stance.​
SOURCES
[1](https://lrs.sog.unc.edu/billsum/s-326-2025-2026)
[2](https://www.derricklawfirm.com/faqs/sc-workers-compensation-for-independent-contractors.cfm)
[3](https://www.scstatehouse.gov/sess126_2025-2026/bills/4751.htm)
[4](https://www.postercompliance.com/blog/labor-law-compliance-for-gig-workers-what-employers-need-to-know/)
[5](https://www.littler.com/news-analysis/asap/new-year-new-employment-laws-what-takes-effect-january-1-2026)
