Noncompete Laws in South Carolina
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At a Glance
South Carolina allows non-compete agreements, but courts review them closely and generally disfavor restraints on employment. A non-compete is more likely to be enforced when it is narrowly written, tied to a legitimate business interest, reasonable in time and geography, not overly harsh on the employee, and not harmful to public policy.
Understanding Your Rights and Restrictions in South Carolina
Get clear, practical guidance on how non-compete agreements work under South Carolina law — and what you can do if you’re bound by one.
Enforceability Standards
To be enforceable in South Carolina, a non-compete generally must:
- Protect a legitimate business interest, such as customer relationships, confidential information, goodwill, or trade secrets.
- Be reasonable in duration.
- Be reasonable in geographic scope.
- Be reasonably limited in the type of work or competitive activity restricted.
- Not impose an undue hardship on the employee’s ability to earn a living.
- Not violate public policy.
South Carolina courts are also reluctant to rewrite overly broad agreements. If the restriction is too broad, the court may refuse to enforce it rather than revise it into a narrower version.
Key Statutes
South Carolina does not have a broad, general non-compete statute for all private-sector employees. Most enforceability rules come from case law.
Related statutory areas may still matter depending on the facts, including:
- South Carolina Unfair Trade Practices Act — S.C. Code § 39-5-20 prohibits unfair methods of competition and unfair or deceptive acts or practices.
- Professional licensing laws — Certain regulated professions may have separate statutory or public-policy considerations.
- Physician non-compete legislation — As of 2026, South Carolina lawmakers have considered legislation that would restrict or prohibit physician non-competes, but this should be checked for current status before relying on it.
Notable Case Law
Poynter Investments, Inc. v. Century Builders of Piedmont, Inc.
South Carolina courts will not rewrite or reform an overly broad non-compete. The restriction must stand or fall on its own terms.
Stonhard, Inc. v. Carolina Flooring Specialists, Inc.
The court held that it would violate public policy for a court to insert a missing geographic limitation into a non-compete.
Team IA, Inc. v. Lucas
The court addressed geographic scope and rejected an overly broad nationwide restriction, while discussing whether a narrower alternative territory could be enforceable.
Practical Implications for Employees
- If you are working under a non-compete in South Carolina (or considering one), here are important practical take-aways:
- Review timing of signing. If you were required to sign the non-compete after employment began without additional consideration (raise, bonus, new title), it may weaken enforceability.
- Examine scope of restrictions. Ask: How long does the restriction last? What geographic area does it cover? What types of work are barred? If it’s overly broad, you may have grounds to challenge it.
- Check for legitimate business interest. If your employer cannot clearly identify a protectable interest (for example, they only had you do standard tasks, no access to trade secrets or key client relationships), the non-compete may not hold.
- Understand what could trigger If you move to a competitor, solicit your former employer’s clients, mis-use confidential information or trade secrets — you may face injunctions or damages.
- Seek early legal Because enforcement depends on specific facts, consulting a qualified South Carolina employment attorney before taking a new job or launching a business is wise.
Recent Developments & Legislative Landscape
- South Carolina has recent legislation under consideration: for example, Bill 3332 would prohibit non-compete agreements for large nonprofit organizations (annual gross revenue over $1B) in the state.
- At the federal level, the Federal Trade Commission (FTC) has proposed rules broadly limiting non-compete agreements nationally — a backdrop worth watching even though enforcement and scope remain uncertain in South Carolina.
Get Help from a South Carolina Noncompete Attorney
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