Usually, a covenant not to compete is when a Georgia employee agrees not to work for an employer's competitors when the employee leaves the company. Covenants not to compete are also known as "non-compete clauses". Signing such an agreement may either be a condition for being employed, or the employee may receive additional compensation for doing so.
When are Covenants not to Compete Unenforceable?
Foreseeing whether or not a judge will uphold a covenant not to compete is usually difficult. Although the interests of employers are important, courts in Georgia also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. A court will typically hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Smyrna that is excessively large.
Non-compete clauses are also limited in that they can only apply to competitors who are reasonably related to the industry of the employer. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you may want to hire a Smyrna, Georgia attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or may even draft a new one that is acceptable to both parties Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.
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