It is now extremely easy for employees to acquire confidential business information with the click of a button. Although productive for business, such easy access can prove detrimental if your business information is later used by a former employee working for the competition. Many employers believe that there is no way to prevent such unfair competition and this is understandable as Georgia courts often refuse to enforce a signed non-compete agreement as overly broad. Accordingly, a Georgia business must be careful and only use non-compete agreements that are specifically tailored for its unique business and the type of work in which the signing employee is involved. The three prong test used by Georgia courts to assess the validity of a non-compete agreement is to determine the reasonableness of: (1) the duration of the non-compete; (2) the territorial coverage; and (3) the scope of the prohibited activity. If any aspect of a non-compete agreement is deemed overly broad, the entire agreement will be void. Accordingly, a Georgia business that wishes to protect its trade secrets and prevent unfair competition must take the time to assess which employees should have a non-compete agreement and work with a legal professional to develop one that is legally solid.
Non-Competes
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