Can I require employees to sign non-compete agreements in Georgia? What are the requirements?

Yes, you can require employees to sign non-compete agreements in Georgia, as reasonable restrictive covenants contained in employment and commercial contracts serve the legitimate purpose of protecting legitimate business interests and creating an environment that is favorable to attracting commercial enterprises to Georgia and keeping existing businesses within the state [GACO 13-8-50]^[1.2]. However, for such agreements to be enforceable, they must meet certain requirements outlined in GACO 13-8-53 ^[1.2]:

• The restrictions must be reasonable in time, geographic area, and scope of prohibited activities.
• The employee must have material contact with the employer’s customers or prospective customers.
• The agreement must be in writing and signed by the employee.
• The agreement must be supported by consideration, such as a job offer or a promotion.
• The agreement must be designed to protect the employer’s legitimate business interests.

A court shall construe a restrictive covenant to comport with the reasonable intent and expectations of the parties to the covenant and in favor of providing reasonable protection to all legitimate business interests established by the person seeking enforcement [GACO 13-8-54]^[1.2]. The person seeking enforcement of a restrictive covenant must plead and prove the existence of one or more legitimate business interests justifying the restrictive covenant. If the person seeking enforcement establishes by prima-facie evidence that the restraint is in compliance with the provisions of Code Section 13-8-53, then any person opposing enforcement has the burden of establishing that the contractually specified restraint does not comply with such requirements or that such covenant is unreasonable [GACO 13-8-55]^[1.2].

Source(s):

• [1.2] Legislative findings.

Jurisdiction

Georgia, Georgia

• Labor