Make a South Carolina Non-Compete Agreement

Applicable State Laws - None

Although non-compete agreements are generally disfavored in South Carolina but will be upheld as long as the following conditions are met:

• The agreement is absolutely necessary to protect the employer's trade secrets or business practices.
• The agreement is reasonable both in time and geographic restriction
• The non-compete does not impose greater restrictions than necessary on the employee's ability to earn a living
• The contract is supported by valuable consideration and does not violate any public policy

Protect your South Carolina business by also using a South Carolina non-disclosure agreement form. Download a South Carolina non-disclosure agreement form now!

How to Write a South Carolina Non-Compete Agreement

To write a South Carolina non-compete agreement, include the following clauses:

• Purpose. This clause explains the purpose of the non-compete agreement: to protect the legitimate business interests of the employer. It also identifies the parties and their roles as well as provides the effective date of the contract.
• Non-compete. This clause provides information on the restrictions the employee must adhere to in order to fulfill the agreement. This is generally restrictions on time, geographic area, general and specific business practices, working for general or specific competitors, and non-solicitation of customers, clients, and employees.
• Time period. This clause explains when the time restriction begins: either at the beginning of the employment relationship or when it terminates.
• Purchase option. This clause states whether the employer will allow the employee to buy out the contract. If so, the amount the employee must pay is listed in this clause.
• Jurisdiction. This clause states that South Carolina laws will be used to govern the agreement.
• Confidential information. This clause defines confidential information as any and all technical or non-technical information provided by the employer that includes, and is not limited to, any data or other proprietary information related to products, inventions, plans, methods, processes, developmental or experimental products, intellectual property, software, databases, customer lists, vendor lists, supplier lists, marketing information, reports, business plans, financial information, or other information about your business or any of your clients, customers, or consultants that is or may be disclosed to the employee under the terms of this contract.
• Permitted disclosure. This clause explains when confidential information may be disclosed without it being considered a violation of this agreement. Generally, this occurs when the employer provides written consent for the release of specific information, when the employee discovers certain information on their own without a breach by another party, or when information is released without any fault of the employee.
• Confidentiality. This clause states that the employee understands that the information the employee may access is confidential. They agree they will not directly or indirectly disclose the information to another party without first receiving written consent from the employer. They also agree to only use the information for the purposes of furthering the business unless they receive written consent from the employer.
• Consultants and employees bound. This clause states that both consultants and employees are bound by the non-compete agreement to keep the information under the strictest of confidence. It also states that they are on a need-to-know basis for accessing the information.
• Return of materials. This clause states that when the relationship between the parties ends or when requested by the employer, the employee is required to promptly return all documents and other tangible material that represents confidential information belonging to the business and any copies that exist. The employer will also notify the employee if there is a loss of confidential information.
• Remedies. This clause explains the legal remedies the employer is entitled to pursue if the employee does not honor their obligations. Examples include the recovery of court costs and reasonable attorney fees, the award by a South Carolina court of a temporary restraining order or a preliminary injunction against the unauthorized use, as well as any other remedies available under South Carolina law or as a matter of equity.
• Entire agreement. This final clause of the non-compete agreement states that the entire agreement may be amended in writing if the parties both sign the amendment.

Both the employer and the employee should sign and print their name. The signatures should be dated. Each should keep a copy of the agreement for their records.