The terms of non-compete and non-solicit agreements are often misunderstood. Whether you’re running a small business or a high-powered startup, you should understand the differences between these covenants. Here’s what you need to know to help you protect your business.
The Key Differences
Non-Compete Agreement: A restrictive covenant that prevents an employee from quitting their position in your company to open their own competing company or from seeking employment with a competitor.
Non-Solicit Agreement: A restrictive covenant that prevents an employee from quitting their position in your company and asking your customers to follow them to their new position or business. This also can be used to prevent the employee from recruiting co-workers to follow them.
Enforcing Non-Compete & Non-Solicit Agreements
Most states do enforce these agreements, however, a small number do not, citing the promotion of economic growth. Recent legislative changes in Georgia have actually made it far easier to enforce these agreements. Some contracts may still be governed by the Old Law, or the legislation that was recently replaced. If you are concerned your agreements may be difficult to enforce or may fall under Old Law provisions, speak to an experienced Atlanta employment law attorney.
Even though Georgia does enforce restrictive covenants, these agreements will not be enforced if they are unreasonable. When drafting a non-compete or non-solicitation agreement, be sure to include provisions limiting the length of time and geographical area of the terms to avoid a judge ruling that your covenant is unenforceable.
Get Help From Our Atlanta Employment Lawyers - (404) 781-1100
Georgia restrictive covenant law is complex, and mistakes can cost your business or company dearly. At Buckley Beal LLP, we have more than 85 years of collective legal experience to call upon as we assist you with your case. Our employment law attorneys have a deep understanding of the relevant laws for your business’s needs, and we are proud to help business owners like you protect your hard work.