Georgians Vote to Make Restrictive Covenants Easier to Enforce

more+
less-

On November 2, 2010, Georgia voters overwhelmingly ratified an amendment to the state constitution that drastically alters Georgia law concerning agreements restricting the rights of employees to compete with their present and former employers. Before this vote, the enforceability of such agreements, which include agreements not to compete and not to solicit customers, depended upon their strict compliance with complex rules developed by Georgia courts. These rules generally were hostile to restrictive covenants and often rendered them completely unenforceable. Moreover, the rules almost always precluded courts from “blue penciling” (i.e., modifying) restrictive covenants to be enforceable.

With the ratification of the amendment, the enforceability of future restrictive covenants will be governed by legislation enacted, contingent upon the amendment’s ratification, in April of 2009. The new legislation overturns the hostile and unforgiving rules courts previously applied and adopts a flexible approach to determine the enforceability of restrictive covenants. In so doing, the legislation provides presumptions favoring restrictive covenants that meet certain standards and permits courts to modify agreements to be enforceable when necessary.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


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.

© Constangy, Brooks, Smith & Prophete, LLP | Attorney Advertising

Written by:

more+
less-

Constangy, Brooks, Smith & Prophete, LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×