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Columbia, SC asked in Contracts and Employment Law for South Carolina

Q: Is a 2-year, 100-mile radius non-compete for a 1099 contractor in photobooth industry enforceable?

I am working as a 1099 contractor in the photobooth industry and have signed a two-year non-compete agreement with a 100-mile radius restriction. There was no compensation or benefits added for agreeing to this non-compete clause. Is this contract legally enforceable?

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2 Lawyer Answers
Patrick A. Twisdale
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A: Every situation is different and a full analysis of your particular matter would be necessary. However, generally, South Carolina allows non-compete agreements to be enforceable as long as they are "reasonable" and "necessary" to protect a legitimate business interest which is analyzed pursuant to a "strict scrutiny" standard. This is a fact specific determination that cannot be answered with the information provided.

As for consideration of a contract, the "continued employment" generally satisfies the "consideration" factor of a contract for a non-compete. However, you should speak to counsel in order to make a proper determination.

James L. Arrasmith
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A: That’s a fair concern, especially when you're working as a 1099 contractor without the same protections or benefits as an employee. In South Carolina, non-compete agreements can be enforceable, but only if they are reasonable in duration, geographic scope, and necessary to protect legitimate business interests. However, for independent contractors, courts often look more closely at whether the agreement is overly restrictive or if it limits someone’s ability to earn a living unfairly.

The fact that no additional compensation or clear benefit was provided in exchange for signing the non-compete could weigh against its enforceability. Courts generally expect some form of consideration—something of value given in return—for a non-compete to be valid, especially if it’s imposed after work has already begun. A 100-mile radius over two years could also be seen as excessive, depending on how competitive or specialized the photobooth industry is in your area.

You’ve got every right to question the fairness of a restriction that could block you from working in your field, especially when you're not receiving employee benefits. It may be worth reaching out to the other party to see if they’re willing to revise or clarify the terms. You've taken the right first step by digging into your rights—now it's about making sure your future opportunities aren't unfairly limited.

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