Things Clients Should Know-Non-compete Agreements
Non-compete agreements, in general terms, are agreements that restrict a person or company from engaging in certain business activity for a specified period of time within a specified geographical area. Usually they are used by employers when hiring employees and buyers in business transactions. The rationale is that an employer does not want an employee to learn valuable trade secrets or business methods and then go into competition against the employer. Nor does a buyer want a seller to start a competing business and take customers away from the buyer who just paid for them. These agreements are disfavored and closely scrutinized by South Carolina Courts because they can restrict someone's ability to earn a living. To be valid, these agreements must be limited in scope to a reasonable time period and a reasonable geographical area and be supported by adequate consideration. Each case is different so it is best to get legal advice prior to entering into a non-compete agreement because you may discover that you do not have the protection you intended or, conversely, you may find yourself barred from gainful employment.
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