Updated October 16, 2023
A South Carolina non-solicitation agreement is a contract between an employer and an employee that restricts the employee from soliciting the employer’s customers for a period of time and within a geographic area after terminating employment with that employer. The agreement is designed to protect the employer’s investment of time and money into building a customer base.
Is It Legally Enforceable in South Carolina?
Yes. Non-solicitation agreements are legally binding in South Carolina, although there is no specific state statute pertaining to them.
Enforceable agreements must contain reasonable provisions relating to the timeframe and geographic scope in which an employee is restricted from solicitation of customers. (Sermons v. Caine Estes Ins. Agency (1980))
An agreement can be enforced if the court does not find it unreasonably restrictive. (Rental Uniform Service of Florence, Inc. v. Dudley (1983))
Table of Contents |
What Can a Non-Solicitation Agreement Prohibit?
In South Carolina, as long as the terms are not too restrictive, a non-solicit agreement can prohibit a former employee from seeking out the employer’s:
- Clients and customers
- Employees
- Independent contractors
- Other associates
What Should a Non-Solicitation Agreement Include?
Based on South Carolina case laws, a non-solicitation covenant can generally be enforced if it includes limitations on the following:
1. Duration
The timeframe during which the individual is bound by the restrictive terms of the agreement must be considered reasonable.
2. Geographical Limit
The agreement should specify the location or area where the terms of the covenant will be enforced. To be considered reasonable, it is typically limited to the city, county, or region where the employer is based.
3. Prohibited Activities
This section defines whom the individual is prohibited from soliciting, and what qualifies as “soliciting.”
Related Forms
South Carolina Non-Compete Agreement
Download: PDF, MS Word, OpenDocument
South Carolina Non-Disclosure Agreement
Download: PDF, MS Word, OpenDocument