The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.
Competition Noncompetition Within A Company In Georgia
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Multi-State
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US-00046
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FAQ
Yes. It affects everyone in the US, it's a federal ruling. You simply will not have any more non compete clauses in any employment agreements, outside the handful of given exceptions. That does not mean your employer has to tolerate your working for a competitor, however. You will just be subject to termination.
Yes, if you have signed one with your employer. However, non-compete clauses are operable only for a reasonable period of time only even if the clause mentions otherwise.
Yes, but it's rare. Most non compete agreements don't hold up under legal challenge, as a company cannot keep you from employment in your specialty. The only ones that hold up are VERY narrow in their focus, pertaining to highly confidential materials/intellectual property.
Are non-compete provisions enforceable in Georgia? Yes. But under the Old Law it was and is very difficult to do so. 85-90% of such agreements we review are, in fact, not enforceable.
Georgia is a blue pencil state, which means that if any part of the agreement is found to be unenforceable, then the entire agreement voided not just the part in question. An extended period of time will not be enforceable as it would unduly limit the employee's ability to work.
Q: Are non-compete agreements enforceable in Georgia? A: Under Georgia's Restrictive Covenants Act, employee non-compete agreements are generally enforceable.
Are non-compete provisions enforceable in Georgia? Yes. But under the Old Law it was and is very difficult to do so. 85-90% of such agreements we review are, in fact, not enforceable.
Reasons Non-Compete Agreements Are Declared Unenforceable An unreasonable restriction on geographic territory. Failure of the agreement to satisfy the basic requirements of contract formation. The individual doesn't fall into the category of employees against whom non-compete agreements can be enforced.
Showing that the agreement is not related to a legitimate business interest is the most effective way of getting out of a non-compete contract. The goal of any non-compete agreement is to protect trade secrets.
One of the most effective ways to get out of a non-compete agreement is to argue that it's unenforceable. Georgia courts will evaluate the terms of the agreement under the state's employment law, which requires that the restrictions be reasonable. If the agreement fails to meet the legal requirements, it may be voided.
