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Under the Act, a general reference to prohibiting soliciting or attempting to solicit business from customers will be presumed to apply to (1) customers or prospective customers with whom the employee had ?material contact? (a term much more broadly defined under the new Act; see below), and (2) products or services ...
California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.
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.
Non-compete Agreements - Frequently Asked Questions. Q: Are non-compete agreements enforceable in Georgia? A: Under Georgia's Restrictive Covenants Act, employee non-compete agreements are generally enforceable.
A: While an employer cannot technically force an employees to sign a non-compete, they can make it a condition of your continued employment. In other words, you can legally be fired if you refuse to sign.
Notwithstanding any other provision of this chapter, enforcement of contracts that restrict competition during the term of a restrictive covenant, so long as such restrictions are reasonable in time, geographic area, and scope of prohibited activities, shall be permitted.
On June 13 2023, in North American Senior Benefits v. Wimmer, the Georgia Court of Appeals held that an employee non-solicit must include an express geographic restriction?a requirement that previously did not exist under Georgia's common law regime.
Key Takeaways. Restrictive covenants are clauses that prevent, prohibit, restrict, or limit the actions of a person or entity named in a contract. Restrictive covenants are common in real estate transactions and apply to everything from the colors you can paint your house to how many tenants can live in a building.