SOUTH CAROLINA REVENUE AND FISCAL AFFAIRS OFFICE
S
TATEMENT OF ESTIMATED FISCAL IMPACT
WWW.RFA.SC.GOV • (803)734-3793
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. An employee’s paid
paternal leave is based on an employee’s average workday. The bill specifies that any state
employee who occupies a position eligible to earn annual leave, including those employed by a
four-year or postgraduate state institution of higher learning or state technical college, is eligible
for paid parental leave. Currently, eligible employee is defined as an employee occupying any
percentage of a full-time equivalent position. This bill also 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. An
employer may require an employee to use paid paternal leave before using annual leave if the
employee’s leave is taken pursuant to the Family and Medical Leave Act (FMLA). This bill
takes effect on October 1, 2025.
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.
Bill Number: H. 3645 Amended by House Ways and Means General Government
Le
gislative Subcommittee on March 25, 2025
Subject: Paid Famil y Leave
Requestor: House Wa ys and Means
RFA Analyst(s): Tipton
Impact Date: April 2, 2025
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H. 3645
Explanation of Fiscal Impact
Amended by House Ways and Means General Government Legislative Subcommittee on
March 25, 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. An employee’s paid
paternal leave is based on an employee’s average workday. The bill specifies that any state
employee who occupies a position eligible to earn annual leave, including those employed by a
four-year or postgraduate state institution of higher learning or state technical college, is eligible
for paid parental leave. Currently, eligible employee is defined as an employee occupying any
percentage of a full-time equivalent position. This bill also 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. An
employer may require an employee to use paid paternal leave before using annual leave if the
employee’s leave is taken pursuant to FMLA. This bill takes effect on October 1, 2025.
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 the bill’s revised definition, newly eligible
employees would not be required to use accrued sick and annual leave or unpaid leave available
under FMLA and instead would use paid parental leave for qualifying events. This change would
allow those 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 paid parental leave under the new definition. 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 newly eligible employees using paid parental 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. Newly eligible employees would be able to retain annual
leave that may have otherwise been used. As such, agencies may experience an increase in
expenses resulting from leave payouts 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 newly eligible employees that
use parental leave, the ability for the agency or institution to manage the workload while
employees are using the parental leave, and any additional leave payout that is required due to
the changes. As this will vary widely by agency and institution, the impact of this bill is
undetermined.
__________________________________
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
This bill is not expected to have an expenditure impact on DSHR to implement the changes, as
the management of the revised definition of eligible state employee is expected to take place
under normal agency operations.
State Revenue
N/A
Local Expenditure
N/A
Local Revenue
N/A