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 can also be used in South Carolina to restrict where current and former employees can work during and after their term of employment with a particular business.
Is a Non-Compete Legally Enforceable in South Carolina?
Yes, South Carolina non-compete agreements are legally enforceable. At the same time, specific criteria must 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 challenged in a court of law.
Types of information protected by a non-compete:
- contact information between businesses and customers can be shielded by a non-compete agreement. This means that those who sign a non-compete contract 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 try to poach employees from the company.
- Existing payroll deduction accounts.
Reasonable Use and Exemptions
Non-compete agreements in South Carolina must be reasonably used 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 time and space and 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:
No specific time limitations are 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.
No geographic limitations are written into the law related to South Carolina non-compete agreements, but the agreement itself cannot be overly broad. The employer must justify why certain geographic limitations have been put in place. The agreement could be thrown out if the limitations cannot be justified.
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: