South Carolina Enforces New Standard Occupational Code Requirements for Employers

Starting from the first quarter of 2024, South Carolina employers will have to navigate new terrain as they face Standard Occupational Code (SOC) reporting requirements. These changes are an initiative of the Statewide Education and Workforce Development Act, signed into law by Governor McMaster in May 2023. The Act fundamentally seeks to strengthen the effectiveness of South Carolina’s workforce development and align the state’s labor force to meet industry needs.

New Reporting Requirements and Processes

From the first quarter of 2024, every employer with at least 10 employees is required to comply with the reporting requirements outlined in S.C. Code Ann. § 41-31-160. Crucial employee information such as social security numbers, name, Standard Occupational Code (SOC), total number of hours worked, and total wages must be included in the quarterly reports.

The step changes from the previous regulation where only large employers with 250 employees or more had to file quarterly reports. Now, the state mandates the reports to be filed electronically unless a “hardship” exception applies. The reports must specify hours worked and SOC for each position, taking South Carolina into the league of prestigious states to require reporting of SOC codes.

Impact on Employers

This fundamental change will likely entail additional legwork from employers, including conducting supplementary research and information gathering to ensure they adhere to the new requirements. SCDEW (South Carolina Department of Employment and Workforce) has provided resources to assist employers in finding the correct SOC for their employees.

The first quarter’s wage reports are expected to be submitted by April 30, 2024. These reports can be submitted electronically through the SCDEW’s SUITS platform. Furthermore, SCDEW avails resources pertaining to SUITS on their website to aid employers.

New Rule for Responding to SCDEW Requests

The Act revised S.C. Code Ann. § 41-35-615 to stipulate that, starting on March 1, 2024, employers with a minimum of 10 employees have to respond electronically to information requests from SCDEW concerning individual claims for unemployment benefits. The electronic filing requirement may be waived by SCDEW upon evidence of hardship. This adjustment eases the process for SCDEW of gathering information from employers in relation to claims for benefits.

In Conclusion

The new SOC reporting requirements mark a significant change in the South Carolina labor law landscape. It presents both challenges and opportunities to employers. On one hand, it imposes an additional burden on employers in terms of data collection and compliance. Conversely, it offers an opportunity to integrate and streamline workforce operations by leveraging the resources provided by SCDEW.

Employers are advised to ramp up their reporting capabilities and establish robust data management systems to effectively comply with the new mandates while enhancing their workforce practices. It is critical to consult legal experts or professional advisors for guidance, understanding, and agreeing to these legal changes as they evolve.

Legal Disclaimer

This is for informational purposes only and should not be construed as legal or professional advice. No attorney-client or confidential relationship is formed by sharing this information. An attorney or suitable professional advisor should be contacted for legal or professional advice.

Author: HERE Irmo