As a business owner, you’ll need to make several important considerations that are directly related to the success of your company. One such document is a non-compete agreement, helping to prevent employees from starting or working for direct competition to your business. If you have current non-compete agreements in place for your business, it’s vital to understand what renders these contracts legally valid in Georgia. The following blog explores what you should know about these important documents and why you should work with a non-compete/non-solicit disputes lawyer to explore your legal options and assist with any issues that could arise if you implement these documents.

What Is a Non-Compete Agreement?

A non-compete agreement is a document a business can enforce that essentially prohibits employees from working for competitors of the business after their employment is over. This can be enforced regardless of the terms the employee departed on, whether it be termination or quitting.

However, you should note that the Federal Trade Commision has effectively ruled these agreements unenforcable. As such, the ruling declares that any non-compete agreements currently in place can no longer be enforced, with the exception of non-competes already in place with senior executives. However, there is an injunction in place as of 2025, meaning the ban is not currently in effect. As such, non-competes may continue as per usual.

What Makes These Documents Legal and Enforcable?

It’s imperative to understand that these agreements must cover several important aspects in order to be legally binding. These include the following:

  • Duration: One of the most important aspects of a non-compete is how long it is enforced. Under the new laws in Georgia, any terms lasting more than two years are considered unreasonable.
  • Geographic scope: This refers to the geographic area in which a former employee is prohibited from working for competing companies under the non-compete.
  • Scope of activities: Like where an employee works following their time at a company with whom they signed a non-compete for, the scope of the employment duties are limited as per the agreement. You can include terms prohibiting the use of any information, like techniques, formulas, or concepts, an employee may gain while working for your company.

You should also note that your agreement can cover whether or not employees will receive bonuses for your cooperation, confidentiality considerations, defined completion, and the damages you can recover if the terms of the agreement are breached by an employee.

As you can see, there is a considerable amount of information that must go into a non-compete agreement, and ensuring the document is legally binding is critical. At AB Law, our dedicated team understands how complicated these matters can be. That’s why, should any disputes arise, we can help represent your best interest. Contact us today to discuss your circumstances with a member of our dedicated firm.