If you want to use non-compete obligations for your business in Georgia, there are five different factors to consider. For these categories of workers, non-compete obligations are enforceable in Georgia as long as the scope of the non-compete obligation is proportionate, necessary to protect one or more legitimate commercial interests and compensation for the conclusion of the non-compete obligation has been provided. In the event that a non-compete obligation is found to be inappropriate, courts may use the “blue pencil” rule to rewrite inappropriate parts in such a way that they are appropriate in the eyes of the court in favour of the employer and thus further favour employers. If an employee does not fall into one of these specific categories, the non-compete obligation would not be enforceable after the employee is dismissed. The new law allows employers to roughly define the types of activities they consider to be concurrent. In addition, the employer can claim any actual damages or losses it claims because the employee left in breach of the duty not to compete – this could include loss of customer profits, loss of secret information about the employer, and similar losses. The Georgian non-competition clause also provides for advertising for former customers. Court decisions have concluded that it is possible to prevent former employees from referring customers or other employees as long as the former employee has had a business relationship with these individuals. It is not possible to prevent former employees from attracting customers with whom they have never had a business relationship before. If you choose to leave an employer with whom you have an obligation not to compete, there is nothing the employer can do. In this case, make sure you make an agreement with the employer so you can do what you want. Also make sure that the employer exempts you from your non-compete obligation with a signed document.
Georgian law generally stipulates that non-compete obligations are enforceable as long as the following conditions are met: But Georgian companies should not stop here! You can even sue to recoup lost revenue from the competition! So, if an ex-employee has signed a strong non-competition clause (as in, well. the one I wrote for you) and then the employee starts his own version of your business and makes $200,000 in profit a year after he leaves, you could sue them and get all those profits back! You may even be able to recover your legal fees and legal fees. 14. If the non-compete obligation I have signed is enforced, it means that I cannot earn a living at all. What must I do? The more things change, the more they remain the same. This saying is reflected in the Georgian Non-Competition Clause, which was fundamentally revised in May 2011 when Georgia`s Restrictive Covenants Law (CAR) came into force. The CAR applies to restrictive covenants entered into after May 2011, while Georgia`s well-developed common law applies to agreements concluded before that date. Nevertheless, earlier common law issues are repeated in the interpretation of the CAR by Georgian courts. One of these problems is that a court cannot extend a non-compete obligation beyond the terms set out in the agreement. How did Georgia react to this decision? We have changed the Constitution of Georgia! With the successful amendment in hand, Georgia then passed the same law as before, retroactively declaring that non-competition clauses signed after May 11, 2011 would be enforceable (as long as they comply with GA law). 8.
What happens if I breach my non-compete obligation? A: Yes, the reason for termination does not affect the enforceability of a non-compete obligation, unless its terms provide otherwise. 6. Is my non-compete obligation enforceable if I signed it after taking up employment? 15. I left my old company to take a job at a new company. The new company only told me that I had a non-competition clause when I had already left the old job. Does that mean I`m sticking to it? A: You should consult with non-competing lawyers in Atlanta, Georgia at Fidlon Legal. We will discuss with you the applicability and scope of your non-compete obligation, as well as strategies to avoid costly and onerous litigation if your former employer tries to enforce them against you. As we saw in the previous question, it is usually analyzed in conjunction with other factors whose time period is deemed appropriate. For example, if the non-compete obligation is intended to protect valuable information, reasonable duration is the period during which the information has value. 4.
What should I do if I don`t have a copy of my non-compete obligation? If you breach a non-compete obligation, you may be sued for damages and legal action that prevents you from continuing to breach the non-compete obligation. It is important to speak to a lawyer before deciding to violate a non-competition clause in Georgia. Courts often take into account these factors: geographical scope, duration, nature of limited tasks and consideration – one in relation to the other. For example, a broad geographic scope – say, an entire state – may be more enforceable if the duration of the restriction is short – say, a month. On the other hand, a broad geographical scope combined with a long period of prohibition is more likely to be deemed unenforceable by a court. When considering territorial scope, courts consider the services provided by the employer. The court will generally not allow a non-compete obligation that prevents an employee from working in an area where the employer is not doing business. In Georgia, a non-competition clause is usually enforceable as long as there is: Legally no, but this may give you an indication that the employer does not consider the cost and risk of trying to enforce the agreement worth it.
It may also be that the employer has decided that the agreement is likely to be unenforceable anyway. Unfortunately, this is not a guarantee that the employer will not try to apply it in your case. Before you intentionally choose to breach any non-compete obligation to which you are subject, contact a lawyer who can discuss the agreement with you and help you evaluate an appropriate course of action. First, for a non-compete obligation to be valid in Georgia, the contract must contain valuable consideration. If you want one of your current employees to sign one of these agreements, you`ll need to provide them with something valuable in return. Review of your agreements is at your discretion and may change from agreement to agreement. Even if a judge decides that a non-compete clause is too broad – for example, a clause that prevented a former employee from working in sales worldwide for 10 years – Georgia`s courts are now allowed to (modify) non-compete clauses to the maximum amount allowed by the new law. With the previous example, the CNC could be written in blue for each sales job in GA at 2 years. When an injunction is issued by the court, it is a remedy that may prevent you, as an employee, from working. This may cause you to lose your ability to be employed in violation of the obligation not to compete during the period set by the court.
It may take months or years for the court to make a decision on the final decision on whether the employee`s signed undertaking not to compete is actually enforceable. Of course, most employees can hardly wait months or years without having the opportunity to earn a living, so the T.R.O. hearing is effectively the exam in most cases. Under the Georgian Law on Restrictive Covenants, which is found in article 13-8-53 of the O. C.G.A., non-compete obligations – as opposed to non-solicitation and non-disclosure agreements – are limited to employees who, during their employment: Perhaps, but a court would likely limit the geographic scope of the non-compete obligation and apply it as amended. The context is the O.C.G.A. statutes. Paragraph 13-8-56 provides that a geographical area of a non-compete obligation covering areas in which the employer is active at any time during the relationship between the parties, even if it was not known at the time of the conclusion of the non-compete obligation, is appropriate, provided that: Probable.
Your employer can also claim “lump sum damages” if these are set out in the non-compete agreement. Lump sum damages are a fixed amount that both the employer and the employee accept as damages if the employee violates the duty not to compete. However, not all lump sum claims for damages are enforceable under the law. Again, this depends on the facts of each case and the law of each state. .
