South Carolina Whistleblower Laws: Protections and How to Report

South Carolina protects public employees who report workplace wrongdoing under the South Carolina Whistleblower Act, S.C. Code Ann. Section 8-27-10 et seq. The law prohibits public employers from retaliating against workers who disclose waste, fraud, or violations of state or federal law to an appropriate authority.

Overview of South Carolina Whistleblower Laws

South Carolina is an employment-at-will state. Employers can terminate workers for any lawful reason or for no reason at all. However, several exceptions protect employees who speak up about illegal or unethical conduct in the workplace. These exceptions fall into two categories: common law protections established by courts and statutory protections enacted by the South Carolina General Assembly.

Understanding these protections is essential for any worker who witnesses wrongdoing on the job. South Carolina law shields public employees, private-sector workers in certain industries, and anyone who cooperates with government investigations from employer retaliation.

This guide covers who is protected, which activities qualify, how to file a claim, available remedies, and the federal laws that apply alongside South Carolina state law. For additional context, review the Federal Whistleblower Laws that apply in every state.

Who Qualifies as a Whistleblower in South Carolina

Public Employees

Under S.C. Code Ann. Title 8, Chapter 27, a protected "employee" includes any person who works for a state department, board, commission, committee, agency, or authority. The definition also covers employees of counties, municipalities, school districts, special purpose districts, and any organization supported in whole or in part by public funds.

The law defines "wrongdoing" as any action by a public body or public employee that results in substantial abuse, misuse, destruction, or loss of public funds or public resources. It also includes an allegation that a public employee intentionally violated federal or state statutory law, regulations, political subdivision ordinances, or a code of ethics.

Private-Sector Employees

Private-sector workers in South Carolina receive whistleblower protections through specific statutes covering workplace safety, workers' compensation, and employment discrimination. While there is no single broad whistleblower statute for the private sector, the combination of state and federal laws provides meaningful coverage.

Common Law Protections for Whistleblowers

South Carolina courts recognize a public policy exception to the at-will employment doctrine. Under this exception, employers cannot fire workers for reasons that violate a clear public policy of the state. Courts look to existing statutes, constitutional provisions, and prior judicial opinions to determine whether a termination violates public policy.

South Carolina common law generally protects employees who engage in these activities:

• Refusing to violate a state or federal law
• Refusing to participate in illegal activities directed by an employer
• Exercising a legal right, such as filing a workers' compensation claim

An employee who is terminated in violation of public policy may file a wrongful discharge lawsuit in the court of common pleas. The general statute of limitations for such claims is three years from the date of the retaliatory action.

Statutory Protections for South Carolina Whistleblowers

Public Employee Whistleblower Act (S.C. Code Ann. Section 8-27-10 et seq.)

This is South Carolina's primary whistleblower statute for government workers. Under S.C. Code Ann. Section 8-27-20, no public body may dismiss, suspend, demote, decrease the compensation of, or otherwise alter the terms of employment of a public employee in retaliation for reporting wrongdoing to an appropriate authority.

An "appropriate authority" includes the public body that employs the whistleblower, or any federal, state, or local governmental body with jurisdiction over criminal law enforcement, regulatory violations, professional conduct, or ethics. Specific agencies named in the statute include the State Inspector General, the South Carolina Law Enforcement Division (SLED), the Solicitor's Office, the State Ethics Commission, the State Auditor, the Legislative Audit Council, and the Attorney General's Office.

Financial Reward for Saving Public Money. If the employee's report leads to savings of public money, the whistleblower may receive 25% of the estimated net savings from the first year of implementation. This reward is capped at $2,000 and is determined by the Director of the Department of Administration (S.C. Code Ann. Section 8-27-20).

Disciplinary Action Against Retaliators. Public bodies covered by this chapter may impose disciplinary sanctions against direct-line supervisory employees who retaliate against a worker for filing a good-faith report of wrongdoing.

Employment Discrimination (S.C. Code Ann. Section 1-13-80)

Under the South Carolina Human Affairs Law, employers cannot discriminate against an employee or applicant for employment in retaliation for:

• Opposing practices made unlawful under the statute (which prohibits discrimination based on race, religion, color, sex, age, national origin, or disability)
• Filing a charge under the statute
• Testifying, assisting, or participating in an investigation, hearing, or proceeding under the statute

Occupational Health and Safety (S.C. Code Ann. Section 41-15-510)

The South Carolina Occupational Safety and Health Act prohibits any person from discharging or in any way discriminating against an employee for:

• Filing a workplace safety or health complaint
• Instituting or causing the institution of a proceeding under the Act
• Testifying or planning to testify in a proceeding under the Act
• Exercising a right under the Act on behalf of themselves or others

South Carolina operates its own OSHA state plan through SC OSHA, which enforces workplace safety standards that are at least as protective as federal OSHA standards.

Workers' Compensation (S.C. Code Ann. Section 41-1-80)

Under S.C. Code Ann. Section 41-1-80, employers cannot discharge or demote an employee for:

• Instituting or causing the institution of a workers' compensation proceeding
• Testifying or planning to testify in a workers' compensation proceeding

Tenant Protections (S.C. Code Ann. Section 27-40-910)

Although not a traditional employment whistleblower statute, the South Carolina Residential Landlord and Tenant Act prohibits landlords from retaliating against tenants who:

• File a complaint about health and safety violations with a government enforcement agency
• Report a violation of the statute to the landlord

Prohibited retaliation includes increasing rent above fair market value, decreasing essential services, or bringing an eviction action.

Statute of Limitations and Filing Deadlines

South Carolina whistleblowers face different deadlines depending on the statute they use. Missing a deadline can permanently bar a claim.

Public Employee Whistleblower Act. A civil action must be filed within one year of the retaliatory action or within one year of exhausting all available grievance, administrative, and judicial remedies, whichever is later (S.C. Code Ann. Section 8-27-30).

Workers' Compensation Retaliation. Lawsuits must be filed within one year of the retaliatory action.

Employment Discrimination. Complaints must be filed with the South Carolina Human Affairs Commission (SCHAC) within 180 days of the retaliatory action.

Occupational Health and Safety. Complaints must be filed with the Director of the Department of Labor, Licensing, and Regulation within 30 days of the retaliatory action.

Common Law Wrongful Discharge. Lawsuits must be filed within three years of the retaliatory action.

How to File a Whistleblower Complaint in South Carolina

The filing process depends on which law applies to your situation.

Public Employee Claims

1. Report the wrongdoing in writing to an appropriate authority (your employer, the Attorney General, SLED, or another listed agency).
2. If retaliation occurs, you may file a grievance through your agency's internal process.
3. If the grievance does not resolve the issue, you may file a nonjury civil action in the court of common pleas in the county where the employment action occurred.
4. The lawsuit must be filed within one year of the retaliation or one year after exhausting administrative remedies.

Workplace Safety Claims

1. File a written complaint with SC OSHA within 30 days of the retaliatory action.
2. SC OSHA will investigate the complaint and determine whether a violation occurred.
3. If a violation is found, SC OSHA may order appropriate relief.

Discrimination Claims

1. File a complaint with the South Carolina Human Affairs Commission within 180 days of the retaliatory action. Call 803-737-7800 to begin the process.
2. SCHAC will investigate and attempt to resolve the complaint through mediation or conciliation.
3. If resolution is not possible, you may receive a right-to-sue letter allowing you to file a lawsuit.

Remedies and Penalties for Retaliation

Public Employee Whistleblower Act

Employers found liable for retaliating against a public employee whistleblower may be ordered to provide:

• Reinstatement to the employee's former position
• Payment of lost wages
• Actual damages up to $15,000
• Reasonable attorney fees up to $10,000 for trial and up to $5,000 for an appeal

Workers' Compensation Retaliation

Employers who violate the anti-retaliation provision may owe the employee lost wages and reinstatement to their former position.

Employment Discrimination Retaliation

Available remedies include:

• Reinstatement or hiring of the complainant, with or without back pay
• Any other equitable relief the court deems appropriate
• Back pay is limited to two years from the date the complaint was filed, reduced by any interim earnings or unemployment compensation received

Occupational Safety Retaliation

Employers who violate the anti-retaliation provision may owe:

• Rehiring or reinstatement with back pay
• Any other relief the court considers appropriate

Tenant Retaliation

Landlords who retaliate unlawfully may owe:

• Three months' periodic rent or treble (three times) the actual damages, whichever is greater
• Reasonable attorney fees
• Termination of the rental agreement may also be available to the tenant

Federal Whistleblower Protections in South Carolina

Several federal laws provide whistleblower protections that apply to South Carolina workers regardless of state law.

Federal False Claims Act (31 U.S.C. Sections 3729-3733). Workers who report fraud against the federal government can file qui tam lawsuits and may receive 15% to 30% of any recovered funds. The Act protects whistleblowers from retaliation including discharge, demotion, suspension, threats, and harassment.

Sarbanes-Oxley Act (SOX). Employees of publicly traded companies who report securities fraud or violations of SEC rules are protected from retaliation. Complaints must be filed with OSHA within 180 days of the retaliatory action.

Title VII of the Civil Rights Act. Workers who report workplace discrimination or participate in EEOC investigations are protected from retaliation.

OSHA Section 11(c). Federal OSHA protects workers who report unsafe working conditions, with complaints due within 30 days.

Dodd-Frank Act. Provides protections and financial rewards to individuals who report securities violations to the SEC.

Whistleblower Contact Information

• SC OSHA Whistleblower Program: File a complaint online or call the Department of Labor, Licensing, and Regulation
• South Carolina Human Affairs Commission: 803-737-7800
• Federal OSHA: 1-800-321-OSHA (1-800-321-6742)
• SEC Whistleblower Office: 1-202-551-4790

More South Carolina Laws

• South Carolina At-Will Employment Laws
• South Carolina Employee Monitoring Laws
• South Carolina Final Paycheck Laws
• South Carolina Workers Compensation Laws