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

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William Bradley Thomas, or Brad, is a seasoned attorney in South Carolina, offering expert counsel to both emerging and established businesses and individuals. His specialties encompass alcohol licensure, asset protection, business law, Counsel on Call Concierge Legal Service™, estate planning, NFA firearms trusts, legal research, and document review. Brad’s unique approach is informed by his rich experience and diverse background. Not only is he a devoted father to three daughters (Anna, Kate, and Jessica), but he also served as the assistant Oconee County, South Carolina attorney. A pioneer in the local industry, he co-founded Carolina Bauernhaus Brewery & Winery, the state’s first farmhouse brewery and winery. His other roles have included membership in the South Carolina Bar Association’s House of Delegates, a board member of the South Carolina Brewers Guild, and an affiliate member of the same organization. Moreover, Brad is a certified Design for Six Sigma (DFSS) Green Belt and has accumulated over a decade’s worth of experience conducting onsite audits and financial analyses on domestic and international secured credit transactions, totaling over $5 Billion across diverse industries. With such a comprehensive skill set, Brad can provide sound legal and business advice that can help you manage and expand your business operations effectively. He can assist with selecting and establishing the most appropriate legal entity for your company, securing and retaining federal and South Carolina alcohol licensure, securing company incentives, and drafting, reviewing, and negotiating favorable contracts. All these services are designed to minimize risk and maximize both earnings and tax savings. Brad also offers estate planning services. Recognizing that life’s ups and downs can sometimes distract from ensuring that your loved ones are well taken care of, Brad applies the same legal and business fundamentals to his estate planning practice. These services include the preparation of wills, NFA firearms trusts (gun trusts), power of attorneys, and advance directives. So when your day at the office is over, you can relax, knowing that your business is running smoothly and your family’s future is secure, thanks to a tailored estate plan. If you’re seeking a trusted ally to guide you in business and personal legal matters, contact Brad Thomas at bthomas@scattorneysatlaw.com or review his firms website at www.scattorneysatlaw.com and discover how he can help you confidently navigate and enjoy all aspects of your life!

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