Charleston's Hotels & Lodging: The Rules That Matter

Every city handles hotels & lodging a little differently. In Charleston, South Carolina, there are 3 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Hotel Worker Retention

Charleston imposes no hotel worker retention ordinance. South Carolina's right-to-work and preemption framework leaves staffing decisions to ownership, with no successor-employer hiring obligations.

Key details: Local ordinance: None. State preemption: SC §6-1-130. Right-to-work: SC §41-7. Federal floor: WARN Act.

No local penalty applies because no retention ordinance exists; federal WARN Act violations for mass layoffs may bring back-pay liability under 29 USC §2101.

Charleston is more permissive than most cities when it comes to hotel worker retention. That said, there are still limits.

Hotel Living Wage

Charleston cannot require hotels to pay above the federal $7.25 minimum wage. SC §6-1-130 (2002) preempts local minimum wage laws, leaving hotel pay to market forces.

Key details: Local mandate: None (preempted). State preemption: SC §6-1-130 (2002). Federal floor: $7.25 per hour. Tipped floor: $2.13 plus tips.

No local living-wage penalty applies; federal FLSA minimum-wage violations are enforced by the U.S. Department of Labor Wage and Hour Division with back-pay and liquidated damages.

Charleston is more permissive than most cities when it comes to hotel living wage. That said, there are still limits.

Transient Occupancy Tax

Charleston hotel guests pay roughly 14% combined accommodations tax: 6% SC sales, 2% SC accommodations tax, plus city and Charleston County local accommodations levies funding tourism and infrastructure.

Key details: Combined rate: ~14%. SC sales tax: 6%. SC accommodations: 2%. Local Ch.: Charleston Ch. 36.

Failure to collect or remit accommodations tax results in penalties, interest, and potential business license revocation; willful evasion is a misdemeanor under SC tax law.

The Bottom Line

Compared to many U.S. cities, Charleston gives residents more room on hotels & lodging. 2 of the 3 rules here are rated permissive. But permissive does not mean unregulated. There are still requirements, and the city does enforce them when violations are reported.

All of the above reflects Charleston's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.