Workers compensation

2025-2026 Bill 3774: Workers compensation - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 3774
STATUS INFORMATION
General Bill
Sponsors: Reps. J.E. Johnson, Stavrinakis, Jordan, McCravy, C. Mitchell, Hart, Rivers and Gilliard
Document Path: LC-0021PH25.docx
Introduced in the House on January 16, 2025
Introduced in the Senate on February 25, 2026
Currently residing in the Senate Committee on
Judiciary
Summary: Workers compensation
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

1/16/2025

House

Introduced and read first time (
House Journal-page 719
)

1/16/2025

House

Referred to Committee on
Judiciary
(
House Journal-page 719
)

1/28/2026

House

Member(s) request name added as sponsor: C. Mitchell

1/29/2026

House

Committee report: Favorable
Judiciary
(
House Journal-page 7
)

2/3/2026

House

Member(s) request name added as sponsor: Hart

2/3/2026

House

Debate adjourned (
House Journal-page 18
)

2/4/2026

House

Debate adjourned until Thur., 2-5-26 (
House Journal-page 18
)

2/5/2026

House

Debate adjourned (
House Journal-page 22
)

2/10/2026

House

Debate adjourned (
House Journal-page 17
)

2/11/2026

House

Debate adjourned until Tues., 2-24-26 (
House Journal-page 14
)

2/24/2026

House

Member(s) request name added as sponsor: Rivers,
Gilliard

2/24/2026

House

Read second time (
House Journal-page 19
)

2/24/2026

House

Roll call Yeas-112 Nays-0 (
House Journal-page 19
)

2/25/2026

House

Read third time and sent to Senate (
House Journal-page 16
)

2/25/2026

Senate

Introduced and read first time

2/25/2026

Senate

Referred to Committee on
Judiciary

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
01/16/2025
01/29/2026

Indicates Matter
Stricken

Indicates New Matter

Committee Report

January 29, 2026

H. 3774

Introduced
by Reps. J. E. Johnson, Stavrinakis, Jordan, McCravy and C. Mitchell

S. Printed 1/29/26--H.

Read the first time January 16, 2025

________

The committee on House Judiciary

To whom was referred a Bill (H. 3774) to amend
the South Carolina Code of Laws by amending Section
42-1-560
, relating to the
notice requirement for filing a third-party action in a workers' compensation,
etc., respectfully

Report:

That they have duly and carefully considered
the same, and recommend that the same do pass:

W. NEWTON for Committee.

_______

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING
SECTION
42-1-560
, RELATING TO THE NOTICE REQUIREMENT FOR FILING A THIRD-PARTY
ACTION IN A WORKERS' COMPENSATION CLAIM, SO AS TO MAKE THE FILING OF A NOTICE
FORM PERMISSIVE.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
S
ection
42-1-560
(b) and (c) of the S.C. Code is
amended to read:

(
b) The injured employee or, in the
event of his death, his dependents, shall be entitled to receive the
compensation and other benefits provided by this title and to enforce by
appropriate proceedings his or their rights against the third party; provided,
that action against the third party must be commenced not later than one year
after
prior to the expiration of
the time in which that action may be brought, and provided
the carrier
accepts
has accepted

liability for the payment of compensation or
makes
made
payment pursuant to an award under this title,
except as hereinafter provided. In such case the carrier shall have a lien on
the proceeds of any recovery from the third party whether by judgment,
settlement or otherwise, to the extent of the total amount of compensation,
including medical and other expenses, paid, or to be paid by such carrier, less
the reasonable and necessary expenses, including attorney fees, incurred in
effecting the recovery, and to the extent the recovery shall be deemed to be for
the benefit of the carrier. Attorney fees owed and payable by the carrier to
the attorneys effecting the recovery shall be set by the commission but shall
not exceed one third of the total claim amount paid by the carrier to the
injured employee. Such fees shall be paid from the funds recovered by the
carrier. Any balance remaining after payment of necessary expenses and
satisfaction of the carrier's lien shall be applied as a credit against future
compensation benefits for the same injury or death and shall be distributed as
provided in subsection (g). Notice of the commencement of the action shall be
given within thirty days thereafter to the Workers' Compensation Commission,
the employer and carrier upon a form prescribed by the Workers' Compensation Commission
; provided, however, that failure to notify the Workers'
Compensation Commission, the employer, and the carrier upon a form prescribed
by the Workers' Compensation Commission does not constitute an election of
remedy
.

(
c)
If, prior to the expiration of the one-year period referred to
in subsection (b), or within thirty days prior to the expiration of the time in
which such action may be brought
When there is less
than one year remaining prior to the expiration of the time in which an action
against a third party must be commenced, and provided the carrier has accepted
liability of the payment of compensation or made payment pursuant to an award
under this title
,
and
the injured employee,
or, in event of his death, the person entitled to sue therefor shall not have
commenced action against or settled with the third party, the right of action
of the injured employee, or, in event of his death, the person entitled to sue
therefor shall pass by assignment to the carrier; provided, that the assignment
shall not occur less than twenty days after the carrier has notified the
injured employee or, in the event of his death, his personal representative or
other person entitled to sue therefor in writing, by personal service or by registered
or certified mail that failure to commence such action will operate as an
assignment of the cause of action to the carrier. Prior to the expiration of
ninety days after the assignment, the carrier shall give the Workers'
Compensation Commission, the injured employee, or, in event of his death, his
dependents and any other person entitled to sue therefor notice, upon a form
prescribed by the Workers' Compensation Commission, that action has been or
will be commenced against the third party. Failure to give this notice, or to
commence the action at least thirty days prior to the expiration of the time
within which such action may be brought, shall operate as a reassignment of the
right of action to the injured employee, or, in event of his death, his
personal representative or other person entitled to sue therefor, and the
rights and obligations of the parties shall be as provided by subsection (b) of
this section.

I
f the carrier as
assignee recovers in an action:

(
1)
for injury, an amount in excess of the sum of the total of benefits paid or
provided the injured employee and the reasonable expenses, including attorneys'
fees, incurred in making such recovery; or

(
2)
for death, an amount on behalf of the dependents of the employee in excess of
the benefits paid the dependents, and the reasonable expenses, including
attorneys' fees, incurred in making the recovery, the excess shall be applied
as a credit against future compensation and other benefits for the same injury
or death and shall be distributed in accordance with subsection (g).

S
ECTION 2. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on January 29, 2026 at 4:25 PM