For years, South Carolina courts have held a clear line on noncompete and nonsolicitation clauses. If a contract restricts where someone can work or who they can contact after leaving a job, it better be specific. Courts expect clear geographic limits. A clause that’s too broad or vague usually won’t hold up.

That worked fine when most people worked in one place, had local clients, and stuck to their region. But times have changed.

People Work Everywhere Now

COVID changed how we work. Remote jobs are normal. Employees live in one state, work for a company in another, and serve clients across the country. Some never even meet their coworkers in person.

This shift has made it harder for employers to write contracts that protect their business. And it’s made it easier for employees to challenge restrictions that no longer make sense.

South Carolina Law Hasn’t Caught Up

South Carolina courts still want noncompete and nonsolicitation clauses to have clear limits, especially about location. That’s tricky now. How do you define a territory when the worker has clients in five states and a home office?

In wealth management, this is a growing issue. Firms partner with advisors across the U.S. A break-up means fighting over who gets which clients, and where. One advisor might be based in Charleston but have clients in Chicago and Phoenix. If a contract says “no soliciting clients in Charleston,” does that cover clients in other states?

These are real problems in current cases.

What Courts Expect

Here’s what South Carolina courts usually ask:

• Is the geographic limit clear?
• Does the restriction protect a valid business interest?
• Is the time period reasonable?
• Does the clause allow the person to still make a living?

If any of those fail, the clause might not be enforceable.

But now, defining a “clear” geographic limit isn’t so easy.

What Employers Should Do

If you draft contracts, you need to rethink how you define territory.

Try this:

• Focus on where clients are, not just where the office is
• Define protected relationships by names or regions
• Keep the time limit short
• Be honest about the company’s real needs

Also, be ready to explain why each part of the clause is fair. Courts want to see balance, not punishment.

What Employees Should Watch For

If you’re asked to sign one of these clauses, don’t just glance at it. Ask:

• Is the area too broad?
• Will it block you from doing your job anywhere else?
• Is the list of clients too long or vague?

Get legal help before signing. You might be able to push back or ask for clearer terms.

Where This Might Be Headed

Unless the law changes, South Carolina courts will keep following the old rules. But judges will have to make calls in cases that don’t fit the old way of working.

They may start asking new questions. Like: What does “local” mean when a person works fully online? Or: Can geography matter less than the type of client or service?

Right now, the answers are not clear.

Final Thought

The way people work has changed. The law hasn’t. That’s a problem for both employers and employees. If you’re in business in South Carolina, especially in fields like entertainment or finance, it’s time to take a hard look at your contracts. Old templates won’t cut it anymore.

Disclaimer: This blog is for general informational purposes only and does not constitute legal advice. Laws may change, and how they apply can vary based on specific facts and circumstances. For advice tailored to your business, consult a licensed attorney in South Carolina.