How to ensure that a non-compete will be enforceable

On Behalf of | Nov 10, 2020 | Business Law |

There are many different businesses in Georgia and they provide many different products and services. The people running these various businesses have more things to do than simply providing the product or service. One of the more important aspects of a business is the employees who are necessary for running the business. Managing the employees is important in order to ensure they are meeting the job requirements and understand what is expected of them.

That is why it is important to have employee handbooks which clearly state the expectations, workplace rules, disciplinary actions and also can contain certain restrictive covenants. These can include non-disclosure agreements, which prevent current and former employees from disclosing secrets of the business to competitors. Another common restrictive covenant is a non-compete agreement. These generally prohibit former employees from working for competitors.

Requirements of Non-Compete Agreement

As these agreements restrict people’s ability to work where they would like, they must meet certain requirements in order to be valid and enforceable in court. The non-compete agreement must be reasonable in how it restricts the former employee in how long it lasts, how large of a geographic area the restrictions cover and how many prospective employers are prohibited by the restrictions.

The restrictive agreements can only be in place for certain employees as well. These employees include, but are not limited to, people in sales, managers of at least two people who have the authority to hire or fire employees or play a role in the process, or are considered a key employee.

When some people in Georgia begin a new job, they receive a lot of information they receive and documents that they sign. One of these documents could be a non-compete agreement. People may not always understand the extent of these agreements until it comes time to find a new job. However, these are important for the company and are enforceable if they meet certain requirements. Experienced attorneys know these requirements and may be able to ensure they are enforceable.