Are Non Solicitation Agreements Enforceable In Georgia

Employers necessarily use non-competition and the prohibition of debauchery for agreements with customers to protect their important business interests, but Georgian courts have in the past been shady when it comes to how each of the provisions is formulated. If all non-compete rules are designed and verified by an employment consultant, it is possible to ensure that the company properly protects its valuable assets. As noted in Jackson Lewis` Non-Compete & Trade Secrets report, Georgia has passed laws regulating covenant restrictive agreements reached on or after May 11, 2011. However, this law does not deal with the non-poaching of employees (i.e. anti-piracy), so courts must apply customary law to such restrictions. Georgian customary law can be confusing and even contradictory on certain issues, for example.B. whether an anti-piracy pact is to be limited to a specific geographical area or personnel with whom the Covenanting employee has been in contact. The Georgia Court of Appeals for the Fourth Division considered both of these issues in a recent decision, CMGRP, Inc. v. Gallant, No.

A17A1168 (Ga. Ct. App. 4 October 2017). However, any agreement between an employer and an insured worker is not necessarily enforceable. For example, regardless of your non-compete/non-efficiency agreement, you couldn`t really stop Ricky Roma from competing against you « somewhere in the United States » if he works for you exclusively in Georgia, and you couldn`t stop him from competing against you « somewhere in Georgia » if his territory only included for you Clarke County, Georgia, and adjacent counties. These hypothetical geographical boundaries would be excessively wide and the Georgian courts would not impose a restrictive pact unless it was proportionate in time, geography and scale of the prohibited activities. Gallant not only questioned the application of the anti-piracy pact to employees with whom it did not have established relations, but also argued that the piracy pact was not applicable due to the lack of geographical territory. Although it ultimately abandoned this argument, the Court of Appeal found it « noteworthy that this court upheld the provisions relating to the non-hiring of employees who have no geographical restriction. » Employers may soon be relieved. The Georgian legislature has adopted a new law (OCGA § 13-8-56) with principles that govern the determination of the adequacy of restrictive agreements in future cases. See ga. L.

2009, p. 231. By this decree, the legislator recognizes that restrictive agreements in employment contracts serve to protect legitimate commercial interests. However, the statute will only take effect if an amendment to the Georgian constitution is approved by voters in the November 2010 parliamentary elections. Cf. Ga. L. 2009, p. 231, § 4. * * * Employers should review their current agreements, which contain restrictive agreements, to ensure that they do not constitute termination problems. If you have any questions regarding the protection of business information, including the use of restrictive agreements, in Georgia, please contact Jackson Lewis` attorney, with whom you work regularly. During the employee`s employment with the employer and for a period of three (3) years after the date of separation, the worker may not recruit natural or legal persons to whom the employer has provided products or services during the three (3) years immediately preceding the date of separation or for whom the employer actively requests to provide products or services from the date of separation (together, « customers ») with the intention of selling or providing a product or service, competitive or potentially competitive, with a product or service sold or provided by the employer.

The limitation on poaching, as described in this [Section], is limited to clients of the Employer with whom the Worker has been in contact for three (3) years immediately prior to the date of separation (whether personally, by telephone or by written or electronic correspondence) or on whom the Worker had confidential or protected information due to his or her position with the Employer. . . .

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