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 State Employment Law Articles
Article Index » georgia: 10 Most Recent Articles Report Link Noncompete News: Georgia Supreme Court Reverses Injunction On Unenforceable Noncompete, But Upholds Injunction Based On Trade Secrets Protection.Ford & Harrison LLP - December 01, 2009 In this edition of Noncompete News, we remind our readers that Georgia affords companies trade secret protection, even in the absence of an enforceable agreement. Earlier this month, the Georgia Supreme Court addressed an injunction entered against an employee that prohibited him from marketing certain software in competition with his former employer. On appeal, the employee contended that the lower court erred in enforcing the noncompete clause that was contained in a software development agreement into which he entered with his former employer. Report Link Dose of Sugar and Spice: Georgia Court Reminds Businesses How They Can Guard Against Unfair CompetitionFisher & Phillips, LLP - September 22, 2009 Georgia law has become somewhat notorious in the area of non-compete, non-solicit, non-recruitment, and confidentiality agreements - generally referred to as restrictive covenants. The nuisances from various court decisions over the years has made Georgia a tough, but not impossible, place to get restrictive covenants enforced. Report Link Georgia Supreme Court Rules on “Loyalty Covenants”.Elarbee, Thompson, Sapp & Wilson, LLP. - July 20, 2009 In a recent ruling, the Georgia Supreme Court held that "loyalty covenants," or clauses seeking to prohibit competitive activity by an employee or franchisee during the term of the employment or franchise relationship, are subject to the strict scrutiny standard of review. Atlanta Bread Co. Int’l, Inc. v. Lupton-Smith, No. S08G1815, __ S.E.2d ____ (Ga. June 29, 2009). Finding such clauses no different from non-competition clauses, the Court held that loyalty covenants must be reasonable in time, scope, and territorial limitation. Report Link Georgia Supreme Court Makes it Harder to Enforce Loyalty Covenants.Jackson Lewis LLP - July 15, 2009 Employers often seek to contractually prohibit their employees from engaging in other business activities during their employment, or at least to limit their competitive activities. The Georgia Supreme Court has held that such loyalty covenants are subject to the strict scrutiny standard of review, making them harder to enforce. Report Link Georgia Passes New Law That May Enhance Enforceability of Non-Compete Agreements.Jackson Lewis LLP - May 07, 2009 The Georgia legislature has passed a new law that makes employee restrictive covenants and non-compete agreements easier to enforce. While House Bill 173 has been signed by the governor, it will not go into effect unless the Georgia Constitution is amended in a statewide referendum in the 2010 general election. If implemented, Georgia will transition from a state where such agreements can be difficult to uphold to one where such agreements are regularly enforced, thus joining the majority. Report Link Noncompete News: HB 173: Potential Sea Change to Georgia's Noncompete Law.Ford & Harrison LLP - May 07, 2009 On April 29, 2009, Governor Sonny Perdue signed House Bill 173 (HB 173), to amend Georgia law relating to the enforcement of employment contracts that restrict or prohibit competition. HB 173 becomes effective only if Georgia's voting public passes a corresponding amendment to the Georgia Constitution, allowing for the Georgia legislature to propound the new law. Report Link Noncompete News: No Recovery of Compensation Tied to Unenforceable Noncompete.Ford & Harrison LLP - March 16, 2009 In this edition of Noncompete News, we tackle two issues under Georgia law: (a) whether an employer can recover compensation paid to its employee in return for a restrictive covenant that is held to be unenforceable; and (2) whether an employer can recover salary it paid its employee if the employee violates its fiduciary duty or duty of loyalty owed to his employer during his employment. The Georgia Court of Appeals had an opportunity to address both of these issues recently in the insurance brokerage context. Report Link Restrictive Covenant Developments in 2008.Elarbee, Thompson, Sapp & Wilson, LLP. - February 09, 2009 It is well known that Georgia and Texas are among the most difficult states in which to enforce a traditional non-compete agreement. Report Link The Impact of the Georgia Whistleblower Act.Elarbee, Thompson, Sapp & Wilson, LLP. - February 09, 2009 The Georgia Whistleblower Act was enacted in 1993 for the purpose of preventing “fraud, waste, and abuse” in State programs by protecting public employees who make complaints or disclosures of such information from reprisals by their employers. It applied only to the State of Georgia and its agencies, departments, etc. and, as such, was not a source of potential liability for local government employers for more than a decade. Report Link Georgia's Parking Lot Law Has Less Bang for Employers Then Predicted.Littler Mendelson, P.C. - June 12, 2008 Georgia is a state where many employees in both rural and urban areas own guns; many are licensed to carry those guns; and many commute long distances and leave their guns in locked compartments of their vehicles parked on company property during work hours. Knowing this, many employers worry about their liability risks for possible workplace violence and prohibit bringing guns onto company property, even the parking lots.
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