Georgia Clauses Relating to Venture Opportunities, competition
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FAQ
While similar to the blue pencil doctrine (which is frequently used as a catch-all term to apply to any modification of a restrictive covenant), the purple pencil doctrine differs in that it allows rewriting non-compete agreements to make them enforceable while the blue pencil doctrine, when using the term in its ...
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.
In Spring 2011, the Georgia legislature passed a new restrictive covenant statute, which, for the first time, allowed Georgia courts in reviewing non-competition agreements between employer and employee to blue-pencil or ?modify a covenant that is otherwise void and unenforceable so long as the modification does not ...
While the majority of states allow their courts to use the blue pencil contract law under reasonable circumstances, three prohibit its use, and some have unclear guidance.
Further, the Court ruled that such a covenant that lacks a geographic territory cannot be salvaged by a court pursuant to the ?blue-pencil? rule, which is a statutory rule that allows Georgia courts to judicially modify unenforceable restrictive covenants so they become enforceable in their new form.
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.
Under Georgia law, a non-competition covenant will generally be enforceable if it is ?reasonable in time, geographic area, and scope of prohibited activities.? O.C.G.A. § 13-8-53(a). Judge Thrash noted that the lack of any geographic limitation rendered the parties' non-competition covenant unenforceable.
In the US, blue penciling commonly refers to the practice of modifying, narrowing, or deleting an unenforceable contract or contractual provision so that the remainder of the agreement is enforceable. It is often used by courts adjudicating challenges to restrictive covenants.