Georgia’s constitution prohibits contracts that have the effect of defeating or lessening competition. Anti-competition is considered anti-public policy in Georgia, so employers should craft their noncompete agreements with care.
Noncompete agreements balance employer and employee rights: the right of the employer to keep business it has cultivated, and the right of the employee to make a living after leaving the employer. To pass muster in Georgia state courts, noncompete agreements must be narrowly limited, either by geographic territory or customer list.
State supreme court clarifies
In 2006, the Georgia Supreme Court overturned an appeals court ruling that had invalidated a noncompete agreement written by the Palmer & Cay Insurance Agency. Palmer & Cay (P&C) made all of its agents sign an agreement stating that if they left the agency, they would be barred for two years from soliciting P&C clients with whom they h...(register to read more)