Introduction Georgia’s new Restrictive Covenant Act became effective May 11, 2011. On that day, Georgia swung abruptly from being one of the least friendly states for noncompete enforcement, to a much more flexible stance toward them. A key feature of the new Act is its express authority for courts to modify covenants as necessary to become enforceable. But a recent federal trial decision in Macon, and a 2013 Fulton County case, raise a red flag. Both cases remind us that if there is any question at all about enforceability of pre-Act ... Read More »
Georgia Noncompetes – A New Era
For decades, Georgia was infamous among the harshest states nationally in enforcement of post-employment noncompetes. All of that changed abruptly effective May 11, 2011. With the passage of HB 30 [ O.C.G.A. §13-8-50 et seq. ] effective on that date, a new and softer era of Georgia noncompetes began. The result is a bright line divide in enforcement of restrictive covenants, between those signed before May 11, 2011 [2. Debate continues as to the new law’s effect on noncompetes signed after November 3, 2010 before May 11, 2011, with the ... Read More »