SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
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This fiscal impact statement is produced in compliance with the South Carolina Code of Laws and House and Senate rules. The focus of
the analysis is on governmental expenditure and revenue impacts and may not provide a comprehensive summary of the legislation.
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H. 3645
Fiscal Impact Summary
This bill expands paid parental leave for eligible state employees from six weeks to twelve
weeks for the birth of a child and from two weeks to four weeks for a co-parent after the birth of
a child or for fostering a child from state custody pursuant to §8-11-150. The bill redefines
eligible state employee in this section to specify that all full-time employees are eligible for
parental leave, including those employed by a four-year or postgraduate state institution of
higher learning or state technical college. Currently, eligible employee is defined as an
employee occupying any percentage of a full-time equivalent position. The Division of State
Human Resources (DSHR) within the Department of Administration (Admin) reports that this
change will extend the paid leave to time-limited and temporary grant positions. Lastly, the bill
increases the paid leave for the adoption of a child from six weeks to twelve weeks for the
primary caregiver and from two weeks to four weeks for a parent who is not the primary
caregiver pursuant to §8-11-155.
State agencies and institutions may face additional personnel needs associated with managing the
workload from employees taking twelve or four weeks of leave and as such, may experience an
increase in expenditures if it is necessary to hire temporary employees or offer current employees
a temporary salary increase to manage the workload. Further, under the bill, employees would
not be required to use accrued sick and annual leave for these additional weeks and instead may
use the additional paid parental leave for qualifying events. As such, agencies may experience
an increase in expenses resulting from employees accruing additional leave if an employee
separates from covered employment. However, as this will vary by agency and institution, the
impact of this bill is undetermined.
This bill is not expected to have an expenditure impact on DSHR, as the management of the
change is expected to take place under normal agency operations.
Explanation of Fiscal Impact
Introduced on January 14, 2025
State Expenditure
This bill expands paid parental leave for eligible state employees from six weeks to twelve
weeks for the birth of a child and from two weeks to four weeks for a co-parent after the birth of
a child or for fostering a child from state custody pursuant to §8-11-150. The bill redefines
Bill Number: H. 3645 Introduced on Januar
y 14, 2025
Subject: Paid Famil y Leave
Requestor: House Wa ys and Means
RFA Analyst(s): Tipton
Impact Date: March 4, 2025
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H. 3645
eligible state employee in this section to specify that all full-time employees are eligible for
parental leave, including those employed by a four-year or postgraduate state institution of
higher learning or state technical college. Currently, eligible employee is defined as an
employee occupying any percentage of a full-time equivalent position. DSHR reports that this
change to the definition would extend parental leave to time-limited and temporary grant
employees. Lastly, the bill increases the paid leave for the adoption of a child from six weeks to
twelve weeks for the primary caregiver and from two weeks to four weeks for a parent who is
not the primary caregiver pursuant to §8-11-155.
DSHR reports that 958 state employees utilized paid parental leave in 2024 for the birth or
placement of a child. State agencies expend appropriated funds for employee salaries when an
employee is at work or on paid leave. Under this legislation, employees would not be required to
use accrued sick and annual leave or unpaid leave available under the federal Family and
Medical Leave Act (FMLA) and instead would use the additional paid parental leave for
qualifying events. This would allow employees to retain an additional six or two weeks of
accrued leave they may have otherwise used. Agencies and institutions may face additional
personnel needs associated with managing the workload of employees taking additional weeks of
leave. As such, agencies and institutions may experience an increase in expenditures if it is
necessary to hire temporary employees or offer current employees a temporary salary increase to
manage the workload resulting from an increase in available leave under the bill.
When an employee separates from state employment, they forfeit accrued sick leave but are paid
up to 45 days of unused annual leave. With the additional paid parental leave provided by the
bill, employees would retain annual leave that may have otherwise been used. As such, agencies
may experience an increase in expenses resulting from leave payout to employees accruing
additional leave if an employee separates from covered employment. DSHR reports that in FY
2023-24, of the 958 employees who used paid parental leave, 112 separated from employment
immediately thereafter, 94 of which were owed annual leave payout in the total amount of
$139,457. Of the 94 employees, 2 had accrued the maximum annual leave carryforward amount
of 45 days.
The total impact of this bill will vary depending on the number of employees that use parental
leave, the average salary of those who take parental leave, the ability for the agency or institution
to manage the workload while employees are using the additional parental leave, and whether
this causes more employees to separate from employment. As this will vary widely by agency
and institution, the impact of this bill is undetermined.
The bill’s expansion of paid family leave currently administered by DSHR is not expected to
have an expenditure impact on Admin, as the management of the change is expected to take
place under normal agency operations.
State Revenue
N/A
__________________________________
Frank A. Rainwater, Executive Director
DISCLAIMER: THIS FISCAL IMPACT STATEMENT REPRESENTS THE OPINION AND INTERPRETATION OF THE
AGENCY OFFICIAL WHO APPROVED AND SIGNED THIS DOCUMENT. IT IS PROVIDED AS INFORMATION TO
THE GENERAL ASSEMBLY AND IS NOT TO BE CONSIDERED AS AN EXPRESSION OF LEGISLATIVE INTENT.
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H. 3645
Local Expenditure
N/A
Local Revenue
N/A