If a court finds that a restrictive agreement is too broad and therefore inappropriate, an employee is not bound by it. Specifically, South Carolina does not follow the «blue pencil» rule, meaning that «restrictions in a non-compete clause cannot be rewritten by a court or restricted by the agreement of the parties, but must be maintained or fall on their own terms.» [17] A company has the right to protect its activities and intellectual property, but only in an «appropriate» manner. In the above situations, responses may ultimately depend on a court`s analysis of what is appropriate under your non-compete agreement. Here are examples of non-compete obligations that the South Carolina courts have deemed appropriate: Number 4, which we can answer for you. The ANSWER is YES, but with quite a few limitations and clarifications. For a non-compete obligation in South Carolina to be enforceable against an employee, it must be taken into account, the employer must have a legitimate business interest to protect, and the restrictions must be reasonable in terms of time frames, geographic restrictions, and restrictions must be limited to protect the interests of the business. It was a full bite, wasn`t it? As part of a non-compete obligation – or in a «non-compete clause» – a party agrees not to compete with another company of a similar nature. Non-compete obligations, non-solicitation clauses and non-disclosure clauses are all forms of restrictive agreements commonly found in employment contracts and contracts for the sale of businesses or assets. You have invested and employed a key employee in your business, and he or she has decided to leave your workplace, and you have information that he or she intends to start a competing business. Will your non-compete obligation stand up? Conflicts associated with non-compete obligations are often decided on a case-by-case basis. So, if you are in the general non-competition debacle, it is best to seek the support of a qualified business lawyer. As employers continue to implement non-compete obligations and agreements, the law on what is enforceable continues to evolve.
Employees need to understand the real risks before making life-changing decisions or even preparing for departure. Those who have been threatened or prosecuted need an experienced attorney in handling these claims in South Carolina. If you or someone you know needs help understanding the law regarding non-compete obligations in South Carolina, if you have been sued for non-compete violation, have received a cease and desist letter regarding your non-compete obligation or other provisions of an employment contract, contact our company at 864-527-5906 for a free consultation. Guess what, the rules for non-compete obligations in the context of the sale of a business are different. That`s right, the law is designed to protect an employee`s right to work and use their acquired skills, while if an entrepreneur sells their business and agrees to a non-compete clause, the terms of the agreement are likely to be longer, e.B. up to 3 or even 5 years, and the likelihood that it will be enforced is much greater. In general, South Carolina courts do not prefer agreements so as not to compete with each other. Restrictive agreements that limit a person`s ability to practice their trade are usually interpreted strictly against the employer by the courts, as restrictive agreements require people not to work in their business practice or to leave the geographical area to continue earning a living. However, South Carolina law establishes criteria for knowing when a non-compete commitment can be enforceable against a former employee. Although the criteria may seem clear, any case in which a non-compete obligation is to be enforced is determined on the basis of its own particular facts. If you wish to contest your non-compete obligation, e.B.
Through declaratory action, Duffy & Young can help. We can also help you negotiate on your behalf or defend yourself. 5) The Confederation is based on valuable considerations. «Consideration» is something of value given in exchange as part of an agreement. Therefore, the employer must give an employee something valuable in exchange for their consent not to compete. In South Carolina, an offer of employment to the worker is a sufficient consideration to enforce a non-competitive obligation. However, if an employment relationship already exists before the employee is asked to accept an obligation not to compete, this agreement must be based on a new consideration (e.g.B. payment of money) and not simply on the maintenance of employment. South Carolina courts can enforce non-compete obligations if they meet the following five criteria: Employers must consider these issues when asking employees to sign restrictive agreements. It is also important to know whether potential new employees have a non-compete obligation with a former employer. In some cases, the new employer may be held liable to the former employer if the employee`s hiring violates the agreement. In situations where a business is sold in whole or in part and a restrictive agreement is concluded between the buyer and the seller, different rules may apply.
In general, however, an employee may take certain preparatory steps with a competition plan, as long as he or she does not compete or act against the interests of the employer. These steps typically include activities such as starting a business, renting space, and getting a phone number and bank account. 3) The commitment is not too harsh and oppressive when it comes to limiting the legitimate efforts of the employee to earn a living. Since a duty not to compete interferes with an employee`s ability to earn a living, it should not be too oppressive. When deciding whether such an agreement is enforceable, South Carolina courts typically analyze this element by looking at the duration and geographic restrictions imposed on the employee. .
