A South Carolina non-compete agreement can be used to protect confidential business information from being shared by current and former employees with other people. A non-compete agreement in South Carolina can also be used to restrict where current and former employees can work during and after their term of employment with a particular business. It is critical for non-compete agreements in South Carolina to be structured appropriately.
Is a Non-Compete Legally Enforceable in South Carolina?
Yes, South Carolina non-compete agreements are legally enforceable. At the same time, there are specific criteria that have to be met for a non-compete agreement in South Carolina to be valid. If the agreement violates any of these criteria, it might be thrown out if it is challenged in a court of law.
What’s Protected?
Different types of information can be protected using South Carolina non-compete agreements. For example, contact information between businesses and customers can be shielded by a non-compete agreement. This means that those who sign a non-compete agreement will not be allowed to share this information. Existing employees are also protected by a non-compete agreement, meaning that someone who signs this agreement cannot be allowed to try to poach employees from the company. Finally, existing payroll deduction accounts can also be protected by a non-compete agreement in South Carolina.
Reasonable Use and Exemptions
Non-compete agreements in South Carolina must be reasonably used for them to be valid. For example, a non-compete agreement must be essential to protecting legitimate business interests. They cannot be unnecessarily harsh or punitive toward an employee. All non-compete agreements in South Carolina must be limited in terms of time and space, and they cannot get in the way of the employee’s attempts to earn a living. If a non-compete agreement goes against public policy, it could be thrown out by a court in South Carolina.
- Enforceable when terminated without cause? Not decided
- Employee non-solicitation agreement permitted? Yes
- Customer non-solicitation agreements permitted? Yes
- Does continuing employment equal sufficient consideration? No
Non-Compete Agreement South Carolina Limitations
Several different limitations could apply to non-compete agreements written in South Carolina. They include:
Limitations on time
There are no specific time limitations placed on non-compete agreements in South Carolina, but they cannot be overly harsh or restricted. If the non-compete agreement is breached, the impacted party has up to 3 years to bring a lawsuit related to the breach of contract.
Non-compete agreement South Carolina geographical limitations
There are no geographic limitations written into the law related to South Carolina non-compete agreements, but the agreement itself cannot be overly broad. The employer has to be able to justify why certain geographic limitations have been put in place. If the limitations cannot be justified, the agreement could be thrown out.
South Carolina Non-Compete Agreement Sample
You should use our South Carolina non-compete agreement template to make sure you include all the necessary information, and our template is available for download in Word and PDF:
Non-Compete Agreement
