Non Compete

Non-compete Agreements are a critical component of protecting your business from being sabotaged from the inside by workers who leave and take “your business” with them. Non-compete agreements have long been one of the most highly contested areas of Georgia law and are a hot bed of litigation for employees and employers alike. Non-compete agreements are signed by both an employee and employer in order to limit what a worker/employee can do in the event that they leave their present employment.

Georgia is a “right to work” state as well as a “fire at will” state generally allowing workers to come and go as they please will giving employers the ability to cease the employment of any employee at any time and for any reason. Non-compete agreements are essential for many businesses to protect their client list, trade secrets, customer base, on-going goodwill, and from losing market share as a result of an employee who leaves taking with them items, information, and knowledge which otherwise can be protected by agreement. Generally, non-compete agreements need to be:

• Limited in scope. Agreements should be very specific as to what capacity an employee can fulfill when leaving employment. Care should be exercised to ensure that the future capacity is narrowly defined as possible and is most similar to the present skills a worker performs. Any agreement that is too broad in definition will not be enforceable such as “working in any capacity within the industry.”
• Limited in duration. Agreements should be narrowly defined as to time. An agreement that lists a longer than shorter period will not be enforceable as it would unduly limit a workers ability to work.
• Limited as to geographic proximity. Agreements that limit the locations where a worker can gain employment to a wide geographic area (such as the East Coast) will not be able to be enforced. Generally, workers can be limited to a fairly narrow defined area, best defined as what a present employee serves.

Non-compete laws vary from state to state as well as do their ongoing interpretation under the law. Therefore, when contemplating either drafting or signing a non-compete agreement, it is essential to retain the services of an attorney who has exhaustive experience in this area.

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