Georgia Approves Employer-Friendly Amendment Affecting Non-Competition, Non-Solicitation and Non-Disclosure of Confidential Information Covenants

by David Long-Daniels, Chris Puckett & Todd D. Wozniak

On November 2, 2010, Georgia voters approved an amendment to the state constitution that will have a substantial impact on the drafting, negotiation, and enforcement of non-competition, non-solicitation and non-disclosure covenants in Georgia. The amendment allows for the implementation of House Bill 173, which is a comprehensive statute governing post-employment and other restrictive covenants. Historically, Georgia has been one of the most difficult states in which to enforce post-employment restrictive covenants. Employers have been forced to rely upon an assortment of confusing and often conflicting court opinions for guidance on what is and is not enforceable. The recently enacted statute is designed to bring about employer friendly changes to the law by eliminating the guesswork and making it easier to draft and enforce post-employment restrictive covenants.

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