Agreements For Restrictive Covenant In Fulton
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FAQ
In Georgia, the enforceability of restrictive covenants is governed by the GRCA, OCGA § 13-8-50 et seq. The GRCA provides that employment contracts that restrict competition must be “reasonable in time, geographic area, and scope of prohibited activities.” OCGA § 13-8-53(a).
Following that general consensus throughout the country, Georgia law likewise generally provided at Code Section 44-5-60 that covenants restricting the use of land would be valid for a maximum of twenty years, and at the end of the twenty years, the restrictive covenants would automatically expire.
My limited understanding is, restrictive covenants are only enforceable by a home owners association created among them. A local government isn't going to swoop in and enforce, or defend, a covenant that you created on your property. The local government is only concerned with land use ordinance's and state laws.
Georgia common law was generally hostile to restrictive covenants but was more permissive of anti-raiding restrictions such as employee non-solicitation provisions. Georgia's passage of the Restrictive Covenants Act (RCA) in 2011 made enforcement of valid restrictive covenants easier than it had been before.
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.
Q: Are non-compete agreements enforceable in Georgia even if signed after employment commences and/or without any additional consideration? A: Yes, continued employment is generally considered sufficient consideration for a non-compete in Georgia.
Is a 12-month restrictive covenant enforceable? Each case turns on its own facts, but a court is generally reluctant to enforce restrictive covenants longer than 12 months. Market practice dictates a period of between 3 and 6 months is appropriate for more junior employees.
How do I challenge a restrictive covenant? Express release: It may be possible to negotiate the release or variation of a restrictive covenant. Indemnity insurance: It is possible to obtain indemnity insurance to protect against the risk of a person with the benefit of a restrictive covenant seeking to enforce it.
To officially end the restrictive covenants, it may be necessary to file a lawsuit seeking a declaration from a court that the covenants are no longer enforceable. This can be a complex legal process that may require the assistance of an attorney.