South Carolina Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in South Carolina?

In South Carolina, non-compete agreements are permitted for the purposes of protecting an employer’s legitimate business interests. In order for the contract to be enforceable, it must adhere to several standards laid out by the South Carolina Supreme Court.

These standards include:

  • The restrictions are reasonable and no greater than necessary to protect the employer’s business interests.
  • The agreement cannot be overly oppressive and hinder an employee’s efforts to earn a livelihood.
  • The non-compete must be reasonable in duration and geographic boundaries.
  • The agreement is supported by consideration.
  • The terms of the contract do not negatively impact the public.

To determine reasonability, the court will use a balance test. A non-compete agreement should balance the interests of protecting an employer with the employee’s right to earn a living. If the contract isn’t balanced, it will be unenforceable.

How Long Does a South Carolina Non-Compete Agreement Last?

The Supreme Court of South Carolina has historically upheld non-compete agreements that last three years or less. The term will begin when the employment relationship is terminated.

How Do You Get Around a Non-Compete Agreement in South Carolina?

To get around a non-compete agreement in South Carolina, the employee will need to prove to the court that the contract is unreasonable and doesn’t abide by the standards laid out by the Supreme Court.

Courts in South Carolina allow the practice of “blue penciling”. This allows courts to modify agreements to make an otherwise unenforceable contract enforceable. The rules in South Carolina allow courts to strike out unreasonable provisions in a non-compete agreement only if the agreement contains a severability clause.

What Voids a South Carolina Non-Compete Agreement?

All non-compete agreements must be supported by consideration of they will be void. In South Carolina, continued employment can be sufficient consideration. However, if an employee is presented with a non-compete after being hired, there needs to be new consideration.

Frequently Asked Questions

How do I hire a lawyer to draft a noncompete agreement in South Carolina?

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Noncompete agreement geographic scope?

I recently left my job of five years and have been offered a new position with a competitor. The new employer has asked me to sign a noncompete agreement. I am concerned about the geographic scope of the agreement and need to understand what areas it would cover, and if it would prevent me from taking a position with a competitor in another state or country.

Daniel D.

Answered Jul 25, 2023

The Courts use a reasonableness standard determine if a non-compete is reasonable in time and geographic scope. It would be necessary to see the non-compete to tell you what it says, the areas it would cover and if it would prevent you from taking another position.

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No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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Hello. I appreciate your concerns about signing a Noncompete Agreement. It's essential to protect your rights and ensure the agreement is fair and reasonable given that a noncompete typically restricts competing activities during or after the term of engagement. Without knowing more about the business relationship and reviewing the actual terms, whether the non-compete is fair, reasonable, or even enforceable remains an open-ended question. Bearing this in mind, if the noncompete is preventing you from taking on other clients during or after the end of your relationship (or both), the scope of this restriction must be reasonable in terms of time, geographic area, and the specific activities it seeks to prevent. For example, does the noncompete specify the types of clients, industries, or geographic areas that are off-limits? What is the duration of the noncompete? If the client breaches your main agreement, will that render your noncompete void and unenforceable? These are just a few general questions that require a thorough review and analysis against Florida non-compete laws. Overall, the ultimate goal is to carefully review the terms to understand how they might impact your ability to take on new clients. If you don’t understand or are unsure about the contractual terms and their legal implications, it's highly recommended you consult with an attorney who can review the noncompete and provide you with personalized legal advice before you sign.

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