1. Covenants Not to Compete
Jody Blanke, Professor
Computer Information Systems and Law
Mercer University, Atlanta

2. Covenants Not to Compete
Non-employment related
e.g., related to sale of business
e.g., Joe the Baker
Employment-related

3. Covenants Not to Compete
Employment related
e.g., Brenda Wood agrees not to work as an on-air news anchor in the Atlanta/Athens television market for 6 month.
California will not enforce such an agreement as an illegal restraint of trade
Georgia used to be very strict about enforcement of these covenants
would not “blue pencil” such an agreement

4. Covenants Not to Compete
Scope
agreement must specify what activity is to be limited
Geography
be careful of terms like Atlanta
Duration
e.g., 6 months, 1 year, 2 years

5. Election Day 2010 Georgia Constitutional Amendment 68% said “Yes”
“Shall the Constitution of Georgia be amended so as to make Georgia more economically competitive by authorizing legislation to uphold reasonable competitive agreement?”
68% said “Yes”

6. O.C.G.A. § 13-8-50 et seq. Courts may now “blue pencil” the agreement
Two years is presumed reasonable
Need not specify a geographic restriction
Law targets “key employees”
executive employees
employees in possession of important confidential information, or
Employees with specialized skills, knowledge, or customer contacts or imformation