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In Georgia, a non-compete agreement is an agreement that relies on restrictive covenants to protect the business interests of a company. It is used by an employer and their new employee (generally a key employee) or independent contractor that outlines the employer's expectations once the employee's job comes to an end. Typically, such agreements limit the employee's actions for a certain period of time, and restrict them from procuring similar employment or engaging in competitive behavior within a certain geographic area. However, each employer’s non-compete agreement will vary according to the needs of the company.
An employment agreement or employment contract may also include non-compete clauses that adhere to O.C.G.A. To help ensure the enforceability of a non-competition agreement in Georgia courts, Georgia employers should seek legal advice from a law firm practicing employment law. This can help ensure that the non-compete adheres to the Georgia Restrictive Covenants Act (RCA).
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According to Georgia Law (§ 13-8-53(a)), non-compete agreements are legally enforceable documents. However, Georgia trial courts tend to disfavor non-competes created before 2011 unless they are fairly drafted. Generally, non-compete agreements may be used in the following instances:
The courts do not allow blue-penciling of overbroad agreements for new non-competition agreements. To better understand the bottom line of how a non-compete may protect your business or the scope of activity that may be protected under the new law, seek the legal advice of a qualified law firm.
Protect your Georgia business by also using a Georgia non-disclosure agreement form. Download a Georgia non-disclosure agreement form now!
To write a Georgia non-compete agreement, first review the Georgia Restrictive Covenants Act so that you better understand how non-compete agreements work. When writing a non-compete agreement, include the following clauses:
Each party should receive a copy of the executed agreement for their records.
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