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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S. 0011
Fiscal Impact Summary
This bill as amended changes the definition of eligible state employee in §8-11-150 for the
purposes of paid parental leave. 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 of
six or two weeks for the birth or placement of a foster child. 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 amended definition will extend paid family leave for the birth or placement of a
child to employees in time-limited and temporary grant positions. Additionally, the bill as
amended takes effect on October 1, 2025.
State agencies and institutions may face additional personnel needs associated with managing the
workload of employees newly eligible for paid family leave under this bill as amended.
Agencies 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, employees eligible for parental leave would not be required to use accrued sick and
annual leave for qualifying events. As such, agencies and institutions may experience an
increase in expenses resulting from payouts for 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 as amended is undetermined.
This bill as amended is not expected to have an expenditure impact on DSHR, as the
management of the revised definition of eligible state employee is expected to take place under
normal agency operations.
Explanation of Fiscal Impact
Amended by Senate Finance Sales and Income Tax Subcommittee on March 11, 2025
State Expenditure
This bill as amended changes the definition of eligible state employee in §8-11-150 for the
purposes of paid parental leave. 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
Bill Number: S. 0011 Amended by Senate Finance Sales and Income Tax
Subcommittee on March 11, 2025
Subject: Paid Famil y Leave Eligible State Employee
Requestor: Senate Finance
RFA Anal
yst(s): Tipton
Impact Date: March 18, 2025
__________________________________
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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S. 0011
state institution of higher learning or state technical college, is eligible for paid parental leave of
six or two weeks for the birth or placement of a foster child. Currently, eligible employee is
defined as an employee occupying any percentage of a full-time equivalent position. DSHR
reports that this change will extend paid family leave for the birth or placement of a child to
employees in time-limited and temporary grant positions. Additionally, the bill as amended
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 amended bill’s revised definition, newly
eligible 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 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 as amended.
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 amended 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 as amended is undetermined.
This amended 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 & Revenue
N/A