summary
Introduced
01/14/2025
01/14/2025
In Committee
01/14/2025
01/14/2025
Crossed Over
Passed
Dead
Introduced Session
126th General Assembly
Bill Summary
Amend The South Carolina Code Of Laws By Adding Section 41-1-140 So As To Provide That Any Covenant Not To Compete That A Nonprofit Corporation With An Annual Gross Revenue Exceeding One Billion Dollars Has With Current And Former Employees Is Null, Void, And Unenforceable, And To Provide That No Such Covenant May Be Entered Into With Future Employees.
AI Summary
This bill amends South Carolina law to prohibit nonprofit corporations with annual gross revenues exceeding $1 billion from using noncompete covenants (legally binding agreements that restrict employees from working for competitors) with their current, former, and future employees. The bill's preamble explains that while noncompete agreements are generally permitted under common law, the state legislature believes that nonprofit entities, which are often formed using public funds and do not pay income taxes, should be held to a higher standard. Specifically, the bill renders any existing noncompete agreements for such nonprofits automatically null and void, and prevents these organizations from creating new noncompete agreements with employees in the future. The law is intended to protect employees' ability to work and move between jobs, particularly in sectors related to public health and safety, and takes effect upon the Governor's approval.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Referred to Committee on Labor, Commerce and Industry (on 01/14/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.scstatehouse.gov/billsearch.php?billnumbers=3273&session=126&summary=B |
| BillText | https://www.scstatehouse.gov/sess126_2025-2026/prever/3273_20241205.htm |
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