South Carolina.

Information provided is current as of January 7, 2026, and companies are encouraged to consult with legal counsel on these types of complex matters.

South Carolina - State Specific Information

South Carolina maintains one of the most conservative approaches to cannabis regulation in the United States. For employers navigating workplace drug policies and individuals seeking clarity on the state's legal landscape, understanding these regulations is essential. This comprehensive guide breaks down everything you need to know about South Carolina's cannabis laws, employer drug testing requirements, and the incentives available for maintaining drug-free workplaces.

Current Legal Status of Cannabis in South Carolina

South Carolina takes a firm stance against cannabis use, with marijuana classified as a Schedule I controlled substance under state law. Unlike many neighboring states that have moved toward medical or recreational legalization, South Carolina has maintained strict prohibition with only one narrow exception.

Medical Cannabis: Limited to Julian's Law

Medical cannabis remains illegal in South Carolina, with one significant exception. Julian's Law permits the use of low-THC CBD oil exclusively for patients suffering from severe epilepsy. This narrow provision offers little relief for patients with other qualifying conditions that might benefit from medical cannabis in other states.

For employers, this means there is no obligation to accommodate medical marijuana use, as there is no broader medical cannabis program to consider.

Recreational Cannabis: Strictly Prohibited

Recreational cannabis use remains completely illegal in South Carolina. The state has shown no significant movement toward legalization, making it one of the more restrictive states in the nation regarding cannabis policy.

Penalties for Cannabis Possession

Understanding the penalties for cannabis possession is crucial for both employers and employees in South Carolina:

• First Offense (28 grams or less): Misdemeanor charge punishable by up to 30 days in jail
• Second Offense: Misdemeanor charge with penalties increasing to up to 1 year in jail

These penalties underscore the state's zero-tolerance approach and the serious consequences individuals face for cannabis possession.

Recent Legislative Developments: House Bill 137

The 2025-2026 legislative session introduced House Bill 137, which signals potential changes to South Carolina's approach to hemp-derived products. Key provisions include:

• Implementation of a strict licensing system for hemp products
• Age restrictions requiring purchasers to be 21 or older
• Phasing out or strictly capping many psychoactive hemp derivatives
• Alignment with the anticipated November 2026 federal ban limiting products to 0.4mg total THC per container

This legislation demonstrates South Carolina's commitment to maintaining tight controls over THC-containing products, even as the hemp industry evolves nationally.

State Regulatory Oversight

The Department of Health and Environmental Control (DHEC) serves as the primary regulatory agency overseeing hemp in South Carolina. DHEC handles both hemp oversight and coordinates with law enforcement on criminal matters related to cannabis.

Employer Drug Testing in South Carolina

South Carolina provides one of the most employer-friendly environments in the nation for workplace drug testing. The state maintains a strict "no-THC" stance for workplaces, meaning any positive THC result constitutes a clear violation of drug-free workplace policies.

Financial Incentives for Drug-Free Workplaces

South Carolina actively incentivizes employers to maintain drug-free workplace programs through significant financial benefits:

• 5% Workers' Compensation premium discount for employers with compliant drug-free workplace programs
• Employees terminated for positive drug tests are disqualified from receiving unemployment benefits

These incentives make implementing and maintaining robust drug testing programs financially advantageous for South Carolina employers.

Documentation: A Critical Risk Management Tool

Establishing robust documentation is a key risk mitigant for employers in South Carolina. Proper documentation of drug testing policies, procedures, and results helps protect employers from potential legal challenges and ensures consistent policy application.

Safety-Sensitive Positions and Zero-Tolerance Policies

South Carolina grants employers significant discretion in defining safety-sensitive positions within their organizations. For roles involving:

• Heavy machinery operation
• Driving or transportation
• Public safety responsibilities

Zero-tolerance policies are the standard practice. Employers can confidently implement strict drug-free requirements for these positions without concern about accommodation requirements.

Unemployment Benefits and Drug Test Failures

Under S.C. Code § 41-35-120, an employee terminated for failing a workplace drug test is considered discharged "for cause." This designation makes the former employee ineligible for unemployment benefits, providing additional protection for employers enforcing drug-free workplace policies.

Privacy Laws and Testing Requirements

While South Carolina supports employer drug testing rights, certain requirements must be met to ensure compliance:

Laboratory Certification

All drug testing must be conducted by certified laboratories to ensure accuracy and defensibility of results. Using non-certified facilities could expose employers to legal challenges.

Confidentiality Requirements

Employers must maintain strict confidentiality regarding drug test results and related employee information. Proper handling of sensitive testing data protects both employer and employee interests.

Employer Liability Protection

When employers have a written drug testing policy that is consistently applied, they are generally immune from civil liability for the testing process. This protection emphasizes the importance of:

• Developing comprehensive written policies
• Applying policies uniformly across all employees
• Following established procedures without exception

Best Practices for South Carolina Employers

To maximize protection and compliance, South Carolina employers should consider the following best practices:

1. Develop comprehensive written drug-free workplace policies that clearly outline testing procedures, consequences, and employee rights

2. Register for the workers' compensation premium discount by implementing a qualifying drug-free workplace program

3. Use only certified laboratories for all drug testing to ensure defensible results

4. Maintain thorough documentation of all drug testing activities, policy communications, and disciplinary actions

5. Apply policies consistently across all employees to maintain liability protection

6. Stay informed about legislative changes, particularly regarding House Bill 137 and its implementation timeline

7. Consult with legal counsel on complex matters related to drug testing and employee terminations

Looking Ahead: What Employers Should Monitor

As South Carolina's regulatory landscape continues to evolve, employers should watch for:

• Implementation details of House Bill 137's licensing system
• Federal changes that may impact state-level regulations
• Any modifications to the workers' compensation discount program
• Updates from DHEC regarding hemp product oversight

Conclusion

South Carolina remains one of the most restrictive states regarding cannabis use and one of the most supportive of employer drug testing rights. With marijuana firmly classified as a Schedule I controlled substance, no recreational legalization on the horizon, and only narrow medical exceptions through Julian's Law, employers can confidently maintain zero-tolerance workplace policies.

The state's financial incentives—including workers' compensation premium discounts and unemployment benefit disqualification for terminated employees—make drug-free workplace programs both legally sound and economically beneficial. By following proper procedures, using certified laboratories, and maintaining consistent policy application, South Carolina employers can protect their workplaces while minimizing legal exposure.