Noncompete News: No Recovery of Compensation Tied to Unenforceable Noncompete

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In this edition of Noncompete News, we tackle two issues under Georgia law: (a) whether an employer can recover compensation paid to its employee in return for a restrictive covenant that is held to be unenforceable; and (2) whether an employer can recover salary it paid its employee if the employee violates its fiduciary duty or duty of loyalty owed to his employer during his employment. The Georgia Court of Appeals had an opportunity to address both of these issues recently in the insurance brokerage context.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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