South Carolina H 3774: Workers compensation

Bill Text

2025-2026 Bill 3774 Text of Previous Version (Jan. 29, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3774

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Indicates Matter 
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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.

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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.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 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 broughtWhen 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 actio