More and more employees across South Carolina (and the country) are being forced to sign non-compete and non-solicitation agreements as a condition of working for a new employer. These types of agreements are often called “restrictive covenants,” and these covenants can negatively impact your ability to find new employment.
A non-compete agreement restricts who you can work for (another company), where you can work (the geographic location), and for how long you are subjected to these restrictions (length of time). South Carolina courts typically do not like non-compete provisions because they are a restraint on trade and on an employee’s ability to freely work in this state.
But courts will enforce a non-compete if it is reasonable in time (typically no more than two years), reasonable in geographic scope (only covers the area where the employee worked or made contact with customers), is narrowly tailored to protect a legitimate business interest of the company (doesn’t prevent you from working altogether in your chosen field), and is supported by valuable consideration (you signed it before you started your new job or they paid you some amount of money in exchange for signing).
Another common restrictive covenant faced by South Carolina employees is a non-solicitation agreement. This type of covenant does not address who you work for or where you work, but rather the non-solicitation provision prevents an employee from soliciting customers of the former employer in an effort to bring that customer along to the new job. Courts are more likely to enforce these types of agreements, as they are more calculated to protecting a business interest without preventing an employee from finding a new job.
These agreements can be confusing and hard to figure out, but they can create havoc in the life of South Carolina employees. It’s always a good idea to have the agreement reviewed by an experienced South Carolina Non-Compete Lawyer before you sign it or before you take a new job. The agreements can contain many different provisions that an employee needs to understand.
Further, companies can and will try to enforce non-compete agreements against South Carolina employees. Companies can bring lawsuits against employees for breach of contract and can seek injunctive relief (a court order) after a preliminary injunction hearing preventing an employee from violating the agreement while the lawsuit continues. These types of lawsuits can be expensive and time consuming, but there are many legal arguments that can be used to defend against a non-compete lawsuit.
South Carolina Non-Compete Lawyer Jeremy R. Summerlin regularly represents South Carolina employees across the state in non-compete litigation, as well as meeting with employees before a lawsuit is filed to advise on the enforceability of a non-compete agreement. Contact him today to discuss any issues relating to a non-compete or non-solicitation agreement.
