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Georgia Passes Ballot Initiative Loosening Rules on Non-Competes

    Client Alerts
  • November 05, 2010

Employers with Georgia operations may be aware of legal limitations on their ability to enforce non-competition and non-solicitation agreements that are standard in other Southeastern states. On Tuesday, Georgia voters approved Amendment One to the Georgia constitution, which gives the state legislature leeway to draft laws that could expand the applicability of non-compete agreements.

In fact, the Georgia legislature has already adopted a law that will make it easier for Georgia employers to enforce non-competition agreements. Amendment One clears the way for its enactment. The new law is unclear about its impact on existing agreements. Employers with Georgia operations should review any existing non-competition agreements, and consider use of such agreements in situations where the previous law may have limited their effectiveness.