South Carolina Non-compete Agreement Template

A South Carolina non-compete agreement is a written contract in which an employee or independent contractor promises not to compete with a business during the job and for a set number of years afterward. The template below also adds a non-solicitation promise, and the FormsPal builder creates the document for free.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current South Carolina law. If you notice an error or outdated information, please contact us.

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What Is a South Carolina Non-compete Agreement?

A non-compete agreement is a written promise by an employee not to work with a competitor of the employer for a set time. The FormsPal template is a South Carolina non-compete agreement between an employee or independent contractor and a company. It sets how long the promise lasts, which competitors it covers, a non-solicitation promise, and where a dispute may be heard.

  • Term. The promise lasts through the job or contractor relationship and for a number of years after it. You write the number of years in the blank.
  • Non-competition. You check one box. The employee may not work with any business that competes with the employer, or may not work with the businesses you list.
  • Location and online work. Optional boxes limit the promise to a geographic area you describe and say whether it applies to the employee's online business.
  • Non-solicitation. During the term, the employee may not entice away another employee, contractor, customer or vendor of the company without the company's written consent.
  • Court changes. If a court finds a covenant unreasonable, the parties agree that the court may reform it.
  • Governing law and venue. The form follows South Carolina law, and you fill in the county where a dispute may be brought.
  • Signatures. Both sides sign with a printed name and title. The form also says it is not a contract of employment.
The form calls the employee the Agent and the employer the Company. The Agent is an employee or independent contractor, and the same wording works for both.

This template covers competition and non-solicitation only. It has no confidentiality clause. To protect customer data, software details or other trade secrets, employers usually use a separate confidentiality agreement alongside it.

Who Usually Signs a Non-compete

Employers most often ask for a non-compete from employees whose work gives them access to customers, pricing or confidential information. Independent contractors sometimes sign one too. Either way, the employer and the employee should both understand the terms before anyone signs.

  • Sales and account staff. They hold customer relationships that the employer wants to protect.
  • Managers and supervisors. They know pricing, plans and the employer's other employees.
  • Technical staff. They work with software, databases and other business information.

South Carolina Non-compete Laws and Restrictions

South Carolina has no statute that sets the test for enforcing non-compete agreements. The test comes from court decisions, which are common law, not from a statute. So it helps to write the terms of your document clearly. The state has also not legislated these points:

  • How long a non-compete can last or how far it can reach.
  • Whether a non-compete must be in writing or supported by something of value in return (consideration).
  • Exceptions for the sale of a business, low-wage workers or third parties.

In practice, many employers keep a non-compete narrow. They tie it to a real business interest such as customer lists or confidential information, limit it to a reasonable time and a reasonable place, and leave the employee able to earn a living. That is drafting practice, not a promise about how a court will rule.

Motorcycle Dealer and Franchisee Restrictions

One South Carolina statute does mention noncompetition covenants. Section 56-16-120 of the S.C. Code Ann. makes it unlawful to impose unreasonable restrictions on a motorcycle dealer or franchisee relative to noncompetition covenants, among other things.[1] You can read the full code on the South Carolina legislature website, linked in the Sources list below.

It is unlawful directly or indirectly to impose unreasonable restrictions on the motorcycle dealer or franchisee relative to transfer, sale, right to renew, termination, discipline, noncompetition covenants, ...

S.C. Code Ann. § 56-16-120

The rule names motorcycle dealers and franchisees. The template on this page is written for an employee or independent contractor and an employer.

Common Mistakes in a South Carolina Non-compete

Most problems with non-compete agreements come from vague or missing terms, not from the form itself. Both the employers and employees should read each clause before signing. These are the slips to avoid:

  • Leaving the length blank. Write the number of years the promise lasts after the job ends.
  • Naming competitors loosely. If you list businesses, name each one clearly.
  • Describing the place in vague words. If you limit the promise to one place, describe it so that both sides can tell where it ends.
  • Skipping the online-work box. Check the box that says whether the promise covers the employee's online business.
  • Forgetting the county. Fill in the county where a dispute may be brought.
  • Signing without a copy. Both sides sign, and each keeps a signed copy.

Do not leave a blank or a check box unanswered by accident. An empty term or place leaves both sides guessing what the promise covers.

If you download the PDF, you can fill in the blanks with the online PDF editor. Need a non-compete for another state? Start from the main non-compete agreement template. For a high-stakes contract, ask a South Carolina attorney to review it first.

Frequently Asked Questions

Can a franchisor in South Carolina impose unreasonable noncompete restrictions on a dealer?

Not on a motorcycle dealer or franchisee. Section 56-16-120 of the S.C. Code Ann. says it is unlawful to impose unreasonable restrictions on the motorcycle dealer or franchisee relative to transfer, sale, right to renew, termination, discipline, and noncompetition covenants.[1] The full text is on the South Carolina legislature website.

What is the difference between the non-compete and the non-solicitation clause?

The non-compete clause limits who the employee may work with or be involved with, such as a competing business. The non-solicitation clause stops the employee from enticing away the employer's employees, contractors, customers or vendors. The template has both.

Can I limit the non-compete to one region?

Yes. The template has an optional box that limits the promise to a geographic area you describe. Two more boxes say whether the promise applies to the employee's online business.

General information, not legal or tax advice.

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Sources

  1. S.C. Code Ann. § 56-16-120.
Published: Jun 6, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.