Non-Compete Agreements Are Largely Enforceable in Georgia

When examining employment law in Georgia, it is clear that a non-compete agreement is important and fairly significant from a legal perspective. One reason for this is that a non-compete agreement is usually enforceable in the state of Georgia. According to Georgia employment law, a non-compete agreement that was signed later than May 2011 and was properly drafted is enforceable in Georgia. Additionally, it must be added that Georgia laws concerning a non-compete agreement’s enforceability favor businesses in Georgia.

The laws in the state of Georgia mean that it is often less challenging for businesses in the state to enforce a non-compete agreement. That being said, Georgia laws do put some limitations on the enforceability of a non-compete agreement in the state. The first restriction is that a non-compete agreement has to be reasonable in the geographic area, time, and scope of the activities that it prohibits. Georgia employment law also means that businesses can only enforce a non-compete agreement against certain kinds of employees.

Businesses in Georgia can enforce a non-compete agreement against key professionals or employees. Businesses can also enforce a non-compete agreement against managers who frequently provide supervision for two or more than two employees and possess the authority to fire and hire employees or make recommendations about those sorts of decisions. In that case, the manager’s recommendations are considered when making such decisions. Aside from that, businesses in Georgia are able to enforce a non-compete agreement against salespeople. Georgia businesses are unable to enforce a non-compete agreement against an employee who does not belong to one of these categories.

Can A Non-Compete Agreement Be Mandatory in Georgia?

Technically, an employer in Georgia cannot mandate that an employee sign a non-compete agreement according to Georgia employment law. However, an employer is able to make signing a non-compete agreement a condition of an employee’s continued employment. As a result of this, employers can legally fire employees who refuse to sign non-compete agreements in the state of Georgia.

Consequences of Violating a Non-Compete Agreement in Georgia

Generally speaking, the consequences of violating a non-compete agreement in Georgia can be quite serious. In the event that the non-compete agreement is enforceable, the employer can and often does file a lawsuit against an employee who violated a non-compete agreement. In this lawsuit, the employer can try to get compensation for any losses that they suffered as a result of the employee violating that agreement. However, the employer may choose to file an injunction instead of a lawsuit.

An injunction is a court order that requires an employee to honor a contract. In this case, the injunction would require the employee to honor the non-compete agreement that they have with their employer. The employer might also file a lawsuit and an injunction at the same time. In this case, the employee could be prohibited from violating the non-compete agreement and face civil penalties. The employer can file a lawsuit for losses that they suffered as a result of the employee violating the non-compete agreement.

The Employer May File a Lawsuit to Receive Compensation for Actual Losses

An employer may want to receive compensation for actual losses that they suffered due to the violation of the non-compete agreement. Simply put, the employer could seek to receive compensation for profits that they lost due to the employee violating the non-compete agreement. However, doing so can be challenging. The employer has to demonstrate that the lost profits are directly related to the employee violating the non-compete agreement. Otherwise, the employer will not be able to receive compensation for these lost profits.

The Employer Might File a Lawsuit to Receive Compensation for Monetary Losses

In the state of Georgia, employers can seek compensation for a variety of monetary losses if they file a lawsuit against employees who violate non-compete agreements. There are many kinds of compensation in these kinds of cases. Punitive damages is one of the more common kinds of compensation. Punitive damages are a form of punishment for the defendant if the defendant engages in malicious conduct.

The employer must give the jury convincing and clear evidence of the employee’s malicious actions in order for the jury to make a determination that the employee owes punitive damages. An employer might also be able to seek liquidated damages in their lawsuit. A specific section in the non-compete agreement usually gives the employer the ability to seek liquidated damages in the event that the employee violates the agreement. The employee might owe the specified amount if the non-compete agreement is enforceable and valid. The court has the ability to decide if the amount owed is reasonable before they require an employee to pay that amount, though.

Barnwell Law Group P.C. Can Provide Legal Guidance Regarding Non-Compete Agreements

Georgia residents should consult Barnwell Law Group P.C. if they need legal guidance regarding a non-compete agreement. We can help you understand the employment laws about non-compete agreements in the state and help you if you are facing a lawsuit due to violating a non-compete agreement. Give us a call or fill out a consulation form to learn how we can aid you. We even offer a consultation for your convenience.