South Carolina Covenant Not to Compete for a Construction Business - Noncompetition
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FAQ
It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.
A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)
Some states have enacted even broader restrictions on non-competition agreements. Later this year, the District of Columbia will join California, North Dakota, and Oklahoma as the only states that ban the use of employer/employee non-competition agreements in most circumstances. See D.C. Act 23-563.
A covenant not to compete will be deemed valid if it only restricts the employee's opportunity to compete while they remain employed with the employer requiring the covenant, but imposes no restrictions on the employee once they separate from the employment.
South Carolina courts may enforce covenants not to compete if they meet all of the following five criteria: Necessary for the protection of the legitimate interest of the business Simply avoiding competition or the loss of a trained employee are not legitimate business interests.
South Carolina courts will not follow a blue pencil rule for covenants not to compete. This means the court will not construe the agreement so as to make it enforceable it must be enforceable on its face.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.