Are Non Compete Agreements Enforceable In Georgia

You want to make sure that your non-compete clause is enforceable, and if a dispute arises, don`t wait to contact a business litigation lawyer at Battleson Law, LLC. Call 404.382.8149 or contact us online today. Georgian law is generally favourable to employers when it comes to non-competition rules, as the requirements of an applicable agreement are not as stringent as in some other states. The terms of an enforceable non-compete clause are as follows. The employee submitted that these non-competition prohibitions are not applicable because they did not have the effect of a geographic restriction. The court agreed. A joint appeals court upheld the court`s ruling. As the Court found that Blair was not qualified as a key man, it found that he could not be bound by a non-compete agreement. As a result, it found that the employee could continue to serve the customer as a dredging operator in competition with his former employer. CSM sued Debus and Lawrence Foods to enforce the restrictive agreements that are included in Debus` employment contract. Debus responded by arguing that his employment does not fit within the scope of the CAR. As a result, the restrictive agreements contained in the agreement are not applicable. From 2011, Georgian law contains a separation rule known as the “Blue Pencil” rule.

Under the blue pencil separation rule, a judge is allowed to amend a restrictive alliance that is too broad to make it applicable instead of invalidating the entire non-competition clause. Therefore, when a worker challenges a broad non-competition agreement, he may nevertheless be subject to a less restrictive version. With the combined efforts of new legislation and a comprehensive constitutional overhaul of the state, Georgia has made a 180-degree shift from a non-competitive state to a state that wholerains its support for non-competition bans. How did this happen and what does it mean for ga companies and employees? Georgia`s competition bans law also provides for the formal notice of former customers. Court decisions have shown that it is possible to prevent former employees from recruiting clients or others as long as the former employee has had commercial interactions with these individuals. It is not possible to prevent former employees from recruiting clients with whom they had no business relationship. In 2012, Blair (a dredging manager in charge of railway maintenance) signed a non-competition agreement with his employer. While continuing to work for Pantera Enterprises (“Pantera”), Blair developed a relationship with his employer`s client (a railway company). Although this decision was a shared decision and therefore constitutes a convincing – and non-binding – precedent for applicants in the future, it is remarkable that the Tribunal found that the non-competition agreement was not applicable.

This decision limits the types of workers who may be subject to competition restrictions. This blog closely follows developments related to the Georgias Restrictive Covenant Act (RCA), passed in 2011 and which has profoundly revised the Georgian law on non-competition clauses.