Non-Compete Agreement Georgia

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13 wrz 2022 in Bez kategorii

Autor : admin

A non-compete agreement is a legal contract that restricts an employee`s ability to work for a competitor or start a competing business for a certain period of time. These agreements are becoming increasingly common in Georgia, as employers seek to protect their trade secrets and customers from being poached by former employees. But what do you need to know about non-compete agreements in Georgia?

Firstly, it`s important to note that non-compete agreements are generally enforceable in Georgia, as long as they are reasonable in scope and duration. The agreement must be necessary to protect the employer`s legitimate business interests, and cannot be overly restrictive of the employee`s ability to find work or make a living. For example, a non-compete agreement that prevents a hair stylist from working anywhere in the state of Georgia for five years would likely be considered too restrictive and unenforceable.

Secondly, non-compete agreements must be supported by consideration, or something of value given by the employer in exchange for the employee`s agreement to the restrictions. This can include anything from a signing bonus to continued employment, as long as it is something of value that the employee did not already have.

Thirdly, if a non-compete agreement is breached, the employer can seek injunctive relief (i.e. a court order to stop the employee from continuing to work for a competitor) and/or damages. However, the employer must be able to demonstrate that they have suffered harm as a result of the breach, such as lost sales or confidential information being shared with a competitor.

It`s worth noting that non-compete agreements are not the only way for employers to protect their trade secrets and customer relationships. Georgia also has a trade secrets law that prohibits the misappropriation (i.e. theft or unauthorized use) of trade secrets, and employers can use confidentiality agreements and other measures to protect confidential information.

In conclusion, non-compete agreements are commonly used in Georgia to protect an employer`s legitimate business interests, but they must be reasonable in scope and duration, supported by consideration, and necessary to protect confidential information and customer relationships. If you are asked to sign a non-compete agreement, it`s important to review the terms carefully and consider seeking legal advice to ensure that you understand your rights and obligations.