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Georgia Might Change Non-Compete Restrictions

    Client Alerts
  • May 15, 2009

Employers with Georgia operations may have encountered that state’s reluctance to enforce non-competition covenants between employers and employees.  Under current Georgia law, the state constitution has been interpreted to severely restrict courts’ ability to enforce written agreements that may impose a restraint on competition.  For example, if any portion of a non-compete is found to be overbroad, the entire agreement may be invalid.

Last month, Georgia’s governor signed legislation that would allow courts to reform overbroad restrictions, bringing the state into line with most other states’ interpretations of non-compete agreements.  The legislative changes require an amendment to the state constitution.  This measure will be included as a ballot referendum in the 2010 general election.