Requirements for Alcohol Server Training as stated by SCDOR by March 2, 2026

All employees who serve alcohol for on-premise consumption for 10 or more hours per week, as well as managers who oversee alcohol service, must complete an alcohol server training program approved by the South Carolina Department of Revenue (SCDOR). Upon completion, individuals must submit their training completion to the Department in order to receive a state issued Alcohol Server Certificate.

Clarification on the "January 18" Rule: Per SCDOR, any alcohol training completed on or before January 18, 2026, is NOT compliant with the new law and is invalid.

New Hires: Staff hired have 30 days from their start date to become certified and anyone hired on or before February 1, 2026 must complete an SCDOR approved training by March 2, 2026.

Proof of Compliance: As a new step in being compliant, physical or electronic copies of the South Carolina Alcohol Server Certificate issued by the SC Department of Revenue must be kept on-site and produced immediately upon request by SCDOR or the South Carolina Law Enforcement Division (SLED).

“Our Priority is ensuring that all South Carolina operators have the resources they need to remain in full compliance with the new state law," said Douglas OFlaherty, Interim President and COO of SCRLA. "We urge all owners and managers to verify their training providers immediately; waiting until the March 2nd deadline could put your business and your staff's credentials at risk. Taking proactive steps now is the best way to ensure your business remains in good standing to avoid potential violations once enforcement begins."

Forensic Digital Identification Verification

Another item H. 3430 specifically addresses are licensees selling alcohol for on-premise consumption between midnight and 4:00 a.m. H. 3430 requires the use of an approved forensic digital identification system to verify the age of individuals seeking entry to the premises. Approved systems must scan the barcode on an identification card, validate the data against a Department of Motor Vehicles database, and analyze the barcode for inconsistencies, errors, or irregularities. Systems that merely match barcode data to the front of an ID do not meet the statutory standard. SCDOR has approved several specific forensic digital ID systems for compliance with this requirement.

Additional Information

A current list of SCDOR-approved alcohol server training programs and guidance on alcohol server certificates is available through the Department of Revenue’s website at https://dor.sc.gov/alcohol-beverage-licensing-abl/recognized-training-programs.

Questions regarding compliance may be directed to the SCDOR Alcohol Beverage Licensing Division either by phone at 803-898-5864 or by email at ABL@dor.sc.gov.

The passing of H.3430 brings significant changes to how we manage liquor liability and server training. To help our members avoid penalties and maximize insurance savings, use this checklist to ensure your establishment is ready for the upcoming deadlines.

🗓️ Critical Deadlines

• January 1, 2026: Mandatory use of forensic digital ID systems for any establishment serving alcohol between 12:00 AM and 4:00 AM.

• March 2, 2026: All servers and managers overseeing alcohol service must complete an SCDOR-approved training program.

  • Note: New hires after this date must be trained within 30 days of employment.

  • SCRLA Member Tip: Don't pay for training twice! Ensure the program you select is explicitly labeled as "H.3430 Compliant" by the SCDOR. Many legacy programs are currently undergoing the re-approval process.

🆔 ID Scanning Requirements

If you are open past midnight, you must use a "forensic" system at the door. These systems do more than check birthdates; they verify barcode authenticity against DMV records.

• Approved Systems: As of late 2025, approved vendors include

• • Intellicheck and Tokenworks (AgeVisor 3, IDentiFake, IDVisor Smart V2).

• Collegiate Venues: If you operate a collegiate sports venue, these systems are required now at the point of sale.

💰 Maximize Your Insurance Savings

Establishments serving alcohol after 5:00 PM must maintain a $1 million aggregate liquor liability policy. However, you can reduce this requirement by meeting "Mitigation Factors":

• Save $250,000: Stop alcohol service by 12:00 AM.

• Save $100,000: Use an approved forensic ID scanner between 12:00 AM and 4:00 AM.

• Save $100,000: Ensure 100% of staff are trained via SCDOR-approved programs.

• Save $100,000: Keep alcohol sales under 40% of total revenue.

⚠️ Penalties for Non-Compliance

The SCDOR has introduced a "Three Strikes" penalty structure for violations:

1. First Offense: $2,500 fine.

2. Second Offense (within 2 years): Up to 14-day permit suspension.

3. Third Offense (within 3 years): Permanent permit revocation.

Background: If the CTA is found to be constitutional, small businesses with less than $5 million in annual revenue and less than 20 full-time employees would be required to report on their ownership structure, business addresses, and other information to the FinCEN. On December 3, 2024, a federal district court enjoined enforcement of the CTA and its corresponding BOI reporting rule. The federal government appealed, and, on December 23, 2024, a “motions panel” of the Fifth Circuit granted the government’s motion to lift the injunction pending appeal. The Fifth Circuit, on December 26, 2024, vacated its own order now that a “merits panel” has the appeal, “in order to preserve the constitutional status quo while the merits panel considers the parties’ weighty substantive arguments.” Then, yesterday, the U.S. Supreme Court granted a stay of the district court’s injunction, reinstating the filing requirement, pending the disposition of the appeal to the Fifth Circuit.

The problem: The Treasury Department reported in October that it had received just 10% of the required submissions to comply before penalties would begin in 2025. Many attributed the low compliance rate to a lack of awareness among small businesses, insufficient outreach & education from the federal government, and a tight time frame for compliance. The Restaurant Law Center, with other industry allies, filed a brief on December 18, 2024, with the Fifth Circuit, and on January 10, 2025, with the Supreme Court, urging them to deny the motions to stay because granting the stay would result in consequences to the Association’s members that cannot be reversed as our members would face a now unmeetable compliance deadline. Given a deadline that businesses across the nation no longer thought applied to them, the practical implications of the granting of the government’s request to stay the injunction will be severe.

To File or Not to File: If you have already filed your BOI report, you have nothing to worry about. If you have not filed, we expect that now that the district court’s injunction is no longer in force and superseded by the stay, we may see FinCEN establish a new, near-immediate deadline. You can follow the news on BOI reporting directly from the official FinCEN website found here, although it tends to be a day or two late. And, if you want to go ahead and voluntarily file a BOI report, free of charge, you can click here and file through the official FinCEN BOI website.

Since our December 24 update, the court delayed the previously announced reporting deadline of January 1 and extended it to January 13. It is possible the court could rule again and reinstate the January 13 CTA reporting deadline. If you have already filed your BOI report, you have nothing to worry about. If you have not filed, you now have the option to voluntarily file or wait to see what is the next ruling to come down from the Fifth Circuit understanding that if the law is found constitutional, you may have a short window to comply.

SCRLA and our national partners at NRA and AHLA will continue to keep our members updated on any further developments relating to the CTA’s registration requirements requiring broad private sector participation.

Yesterday afternoon, the Fifth Circuit Court of Appeals granted the federal government’s Motion to Stay the injunction that had temporarily blocked new reporting requirements covering about 32.6 million small businesses. This means that the filing deadline for the “beneficial ownership information” (BOI) report under the Corporate Transparency Act (CTA) is now again January 1, 2025. Failure to file the BOI report before the deadline may result in penalties of up to $591 per day. For more information on the BOI report and to file your report, click here.

Background: Small businesses with less than $5 million in annual revenue and less than 20 full-time employees are required to report on their ownership structure, business addresses, and other information to the Financial Crimes Enforcement Network (FinCEN), a subagency of the Treasury Department. Before yesterday’s court decision, a lower court had halted the reporting requirements pending ongoing litigation. The original Continuing Resolution (CR) funding the federal government until March 14, 2025, also had a mandatory one year reporting delay, but the final pared down version that recently became law stripped out the one year extension language.

The problem: The Treasury Department reported in October that it had received just 10% of the required submissions to comply before penalties would begin in 2025. Many attributed the low compliance rate to a lack of awareness among small businesses, insufficient outreach & education from the federal government, and a tight time frame for compliance. Given that imminent deadline, which businesses across the nation no longer think applies to them, the practical implications of the government’s demand to stay the injunction could be severe. The decision yesterday gives businesses impacted by this reporting requirement less than one week to comply.

What’s next: Litigation in this particular case continues but in the meantime, the Court of Appeals held that the government has made a strong showing against the businesses’ facial challenge to the constitutionality of the CTA and has allowed the law to be enforced pending the final outcome of the litigation.

A huge thank you to AHLA, Congressman Joe Wilson (SCRLA/Rep. Wilson letter to GSA), Congressman Jim Clyburn, and their staff for their assistance in securing this win for South Carolina hoteliers and restaurateurs!

Background  
In October 2023, the NLRB released a final rule that, starting on March 11, would have changed the standard the federal government uses to determine when two or more employers are jointly responsible for a shared group of workers’ terms and conditions of employment. The rule would have made it easier for the NLRB to declare joint-employment status in business relationships, and enabled unions to organize by company rather than property by property.
 
The rule was designed to force franchisors to the negotiating table with workers they do not actually employ to increase unionization. It would have complicated relationships among hotel owners, brands, and employees, limiting opportunities for franchisees and workers along the way.
 
In November 2023, the American Hotel & Lodging Association (AHLA), the Restaurant Law Center (RLC), the U.S. Chamber of Commerce, and other leading business associations filed a lawsuit in the U.S. District Court for the Eastern District of Texas challenging the rule’s legality. The court’s March 8 decision overturned the new rule and reinstated a 2020 NLRB rule that protects businesses from undue liability for employees over whom they do not have direct control. Under that policy, which the Biden Administration had rescinded in 2021, companies will be seen as a joint employer only if they maintain “substantial direct and immediate control” over workers’ terms and conditions of employment.

Late last week, a federal judge issued a temporary restraining order specifically for the State of Texas as an employer, meaning the first phase of the DOL Overtime Rule will go into effect as announced today. This decision temporarily exempts the State of Texas from the rule's implementation, however, businesses in the rest of the country will still need to comply. The Restaurant Law Center (RLC) and the American Hotel & Lodging Association (AHLA) are part of a coalition challenging the rule and are analyzing their options now on behalf of our members given the ruling. More updates will follow.

Overview of the Final Rule:

• Standard Salary Threshold Increase: Effective July 1, 2024, the standard salary threshold will increase to $844 per week ($43,888 annually). It will rise again on January 1, 2025, to $1,128 weekly ($58,656 annually).
• Highly Compensated Employee (HCE) Threshold Increase: The salary threshold for HCEs will be $132,964 annually starting July 1, 2024, and will increase to $151,164 on January 1, 2025.
• Automatic Updates: Starting July 1, 2027, the earnings thresholds will be automatically updated every three years based on wage data.

What You Should Do Now:

• Review Job Duties: Ensure employees are correctly classified as exempt or non-exempt based on their job duties.
• Review Payroll Records: Identify salaried exempt employees with wages below the new threshold. For these employees, you might consider 1) Raising their salary above the new limit or 2) Changing their status to non-exempt and properly tracking hours to pay overtime when appropriate.
• Consult Counsel: Consult with an employment attorney licensed in SC to determine how best to comply with the Final Rule and all applicable state and local rules.

For More Information:

• DOL: Final Rule on Overtime Protections
• DOL: Final Rule Webinar
• DOL: Earnings Threshold Chart
• DOL: Small Business Compliance Guide
• DOL: Final Rule FAQ

The proposed overtime regulation is poised to substantially raise the exemption amount for executive, administrative, and professional employees. Specifically, the 2024 Rule outlines an increase in the overtime threshold to $43,888 effective July 1, 2024, and $58,656 effective January 1, 2025. Additionally, it includes a provision for automatic updates to the overtime threshold every three years based on wage data availability. This adjustment could potentially lead to a significant rise in employee labor costs for hospitality operators, exceeding 60%, and pose a considerable threat to numerous jobs, particularly in managerial roles that serve as important career advancement opportunities for employees nationwide.

"It is regretful that the Department of Labor is forcing employers to relitigate the issues that were decided when the Court struck down the 2016 Overtime Rule because of its illegality," said Angelo Amador, Executive Director of the Restaurant Law Center. "The 2024 Overtime Rule repeats the errors of the 2016 Rule and fails to address the flaws previously identified by the Court.”

Earlier this year, AHLA filed formal comments urging the DOL to consider the devastating impacts the rule would have on small businesses. AHLA Board Member Jagruti Panwala also testified before the House of Representatives to express hoteliers’ concerns over the proposed measure.

Additional Resources:

• DOL: Final Rule on Overtime
• DOL: Final Rule on Overtime FAQ
• DOL: Final Rule Earnings Threshold Chart

The final rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act, provides guidance on whether a worker is an employee or independent contractor under the FLSA. Misclassification is a serious issue that denies employees’ rights and protections under federal labor laws and hurts the economy at-large. The Department believes this final rule will protect workers from misclassification, while at the same time providing a consistent approach for those businesses that engage (or wish to engage) with independent contractors.

It is the Department’s obligation to administer and enforce the FLSA to ensure that workers who should be covered under the Act are properly classified as employees. This final rule ensures that such workers receive the FLSA’s wage and hour protections, and that employers that comply with the law are not placed at a competitive disadvantage when competing against employers that misclassify employees. The final rule also aligns the department’s approach with longstanding judicial precedent, which will reduce confusion, improve compliance, and better protect working people.

Specifically, the final rule does the following:  

• Restores the multifactor, totality-of-the-circumstances analysis to assess whether a worker is an employee or an independent contractor under the FLSA. 
• Ensures that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. 
• Uses the longstanding interpretation of the economic reality factors. These factors include opportunity for profit or loss depending on managerial skill, investments by the worker and the potential employer, the degree of permanence of the work relationship, the nature and degree of control, the extent to which the work performed is an integral part of the potential employer’s business, and the worker’s skill and initiative. 
• Rescinds the 2021 Independent Contractor Rule.