Are non-compete agreements enforceable in South Carolina?
1. Baseline Rule. No general statute; common law controls. Faces Boutique, Ltd. v. Gibbs, 318 S.C. 39 (1995), and Rental Uniform Service of Florence, Inc. v. Dudley, 278 S.C. 674 (1983), set the five-part test: (a) necessary to protect a legitimate employer interest, (b) reasonably limited in time, (c) reasonably limited in geographic territory, (d) not unduly harsh on the employee, and (e) supported by valuable consideration.
2. Reasonableness Factors. Legitimate interests include trade secrets, confidential customer information, customer goodwill, and special training. Duration of 1-2 years and geography matching the employer's actual market are typical.
3. Consideration. South Carolina is strict on mid-employment covenants — continued at-will employment alone is NOT sufficient. The employer must provide new, valuable consideration. Poole v. Incentives Unlimited, Inc., 345 S.C. 378 (2001).
4. Wage Thresholds. None.
5. Blue Pencil / Reformation. South Carolina applies a strict blue-pencil rule — courts will NOT rewrite or modify overbroad covenants. An unreasonable restraint is void. Stringer v. Herron, 309 S.C. 529 (1992).
6. Industry Carve-Outs. Lawyers barred by S.C. RPC 5.6.
7. FTC Rule. Enjoined nationwide by Ryan LLC v. FTC (E.D. Tex. Aug. 2024); on appeal.
8. Garden Leave / Forfeiture-for-Competition. Permitted.
9. Choice of Law. South Carolina courts apply South Carolina law where another state's law conflicts with SC public policy, particularly on the consideration requirement.
This is legal information, not legal advice.
- You signed a mid-employment non-compete without receiving new consideration
- Your covenant has overbroad provisions and may fail entirely
- Employer seeks an injunction in South Carolina circuit court
- Faces Boutique, Ltd. v. Gibbs, 318 S.C. 39 (1995)
- Poole v. Incentives Unlimited, Inc., 345 S.C. 378 (2001)
- Rental Uniform Service of Florence, Inc. v. Dudley, 278 S.C. 674 (1983)
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.