In today's competitive business climate, employers often use non-compete agreements to protect proprietary information, trade secrets, and customer relationships. In South Carolina, non-compete agreements are enforceable, but they must meet specific legal standards to be valid. Whether you’re an employer looking to safeguard your business or an employee concerned about future job opportunities, understanding how these agreements work is essential.

At E Scott Sanders LLC, we offer legal support to individuals and businesses in Greenville, helping them navigate non-compete issues with clarity and confidence.

What Is a Non-Compete Agreement?

A non-compete agreement is a contractual clause that prevents an employee from working for a competitor or starting a competing business within a certain geographic area and time frame after leaving a job. In South Carolina, these agreements are enforceable only if they are considered reasonable and protect legitimate business interests.

Requirements for Enforceability in South Carolina

South Carolina courts will only enforce non-compete agreements that meet the following criteria:

1. Necessary for Business Protection: The agreement must be designed to protect legitimate business interests, such as trade secrets, confidential information, or customer relationships.
2. Reasonable in Time: Courts typically uphold agreements that restrict competition for no more than 12 to 24 months. Anything longer may be considered excessive unless strongly justified.
3. Reasonable in Geographic Scope: The restricted area must be narrowly tailored to the geographic scope where the employer actually does business.
4. Not Unduly Restrictive: The agreement must not prevent the employee from earning a livelihood in their chosen field.
5. Supported by Consideration: There must be valid consideration, such as offering the job, a promotion, or a raise in exchange for signing the agreement.

For Employers: Crafting Enforceable Agreements

If you are an employer, it’s crucial to draft non-compete clauses that are narrowly focused and legally sound. Overreaching agreements can backfire, leading to litigation or unenforceability. Be specific about what activities are restricted, for how long, and where.

For Employees: Know Your Rights

Employees should not assume that every non-compete clause they sign is automatically valid. Courts may strike down overly broad or unreasonable agreements. Before signing, employees should review the language carefully and consider seeking legal advice—especially if it could impact their ability to work in the future.

Legal Assistance in Greenville

Whether you’re an employer drafting a non-compete or an employee questioning one you’ve signed, E Scott Sanders LLC can provide the legal assistance you need. We help Greenville residents evaluate, negotiate, and, if necessary, litigate non-compete issues to protect their rights and interests.