Noncompete News: Georgia's Restrictive Covenants Act Effective May 11, 2011


On May 11, 2011, Governor Deal signed into law House Bill 30. House Bill 30 was introduced primarily to clarify when the Restrictive Covenants Act ("RCA") would be effective.

As discussed in our prior Noncompete News alerts (see December and January issues), initially the RCA was thought to become effective on November 3, 2010. Then, commentators argued it would become effective on January 1, 2011 and, then, not at all. Thus, House Bill 30 was signed into law "to remove any uncertainty by substantially reenacting the substantive provisions of [the RCA], but the enactment of this Act should not be taken as evidence of a legislative determination that [the RCA] was in fact invalid."

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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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