Georgia Moves a Step Closer to Noncompete Reform
It may soon be a lot easier to enforce noncompete/nonsolicitation agreements in Georgia. Late last week the Georgia House Judiciary Committee passed a resolution to amend the Georgia Constitution to allow the General Assembly to pass laws governing competitive activities between employee and employer, distributors and manufacturers, franchisors and franchisees and others. The need to protect company investments in people drove the change, as did the confusing case law on the subject. The proposed amendment would also allow the Assembly to pass laws which would permit courts to limit the duration, scope and geographic area of such contracts. In other words, courts would be permitted to rewrite the contracts to make them reasonable.
The Judiciary Committee resolution is not yet the law. It still needs the approval of the full House, the Senate, the Governor and the voters this fall. According to the local press, there appears to be a lot of support for the resolution. See Fulton County Daily Report, February 12, 2010.