Before May 11, 2011, Georgia noncompete law essentially didn’t exist. Although it was legal for noncompete agreements to exist between employers and employees, their enforcement and interpretation relied on the state’s common law rules and case law, rather than codified legislation. There had been an attempt in 1990 to enact a statute governing noncompetes, but the Georgia Supreme Court deemed it unconstitutional in 1991. According to the state’s constitution at that time, Article III prohibited “contracts and agreements which…are intended to have the effect of defeating or lessening competition or encouraging monopoly”.
In 2009, another effort was made to enact noncompete legislation with the passage of House Bill 173. With the 1991 ruling in mind, Georgia’s legislature also proposed an amendment to the state constitution which would allow noncompete legislation to be enforced. The amendment was changed on November 2, 2010, which should have cleared the way for the new Georgia noncompete law. Unfortunately, the language regarding the law’s effective date was too vague, resulting in another delay. The state constitution was consulted for guidance, but Governor Nathan Deal wasn’t quite satisfied with the suggested effective date of January 1, 2011. It was ultimately determined that the new law, the Georgia Restrictive Covenants Act (GRCA), should go into effect on May 11, 2011.
Also known as Georgia Code Title § 13-8-50 et seq., this piece of legislation has remained unchanged since 2011. Noncompete agreements that were signed before May 11, 2011 are still interpreted and enforced according to the state’s common law, but agreements signed on or after that date fall under the GRCA. Even though certain aspects of this law remain open to interpretation, a growing body of case law provides a framework that helps guide Georgia courts in their enforcement of noncompete agreements.
Drafting noncompete agreements for your employees may seem intimidating, but it doesn’t need to be. We’re here to help you understand the ins and outs of Georgia noncompete law, so you can stay compliant while protecting your business.
While the legal definition of a noncompete agreement can vary from state to state, the purpose stays the same – to protect employers’ business interests from unfair competition from former employees. Noncompetes are designed to restrict employees from either working for competitors or forming their own businesses for a set time frame, and within a particular area. For example, most noncompetes in Georgia remain in effect for two years or less, although there are exceptions that Georgia noncompete law will uphold. These agreements are most commonly used by employers who would be vulnerable if former employees revealed confidential information, poached clients, or copied proprietary technologies.
The majority of states allow noncompete agreements in some form, with each state determining their scope and limitations. Noncompete law in some states is more employer-friendly, while in others it’s more favorable for employees. Some employers include noncompetes as part of the paperwork package for new hires, while others may ask long-term employees to sign noncompete agreements. Employees aren’t legally required to sign noncompetes, but they may face termination if they refuse. However, if an employee is unwilling to sign a noncompete agreement, they can ask for it to be modified so that both parties are satisfied. Noncompete agreements that are overly broad or unreasonable are often overturned if challenged in court, which gives employers an incentive to negotiate. When businesses partner with us for advice on noncompete agreements, we don’t just consider the needs of the clients and their employees; we also consider state regulations, Georgia’s case law, and any other relevant legal precedents. If one of your employees wants to negotiate the terms of a noncompete agreement, we can outline your options without weakening the protections the agreement would give your business.
Non-solicitation agreements are much narrower in scope than noncompetes, although they usually include the same restrictions on the amount of time for which the agreement is valid. The function of a non-solicitation agreement is to prevent employees from soliciting customers, clients, or employees from their former employer. Just like noncompete law, non-solicitation law across all states requires this type of agreement not to place an undue burden on employees. If a non-solicitation agreement is challenged in court and found to be too broad, it could be overturned. Employees aren’t legally obligated to sign non-solicitation agreements, but most employers can legally terminate their employment if they decline.
Also known as non-disclosure agreements or NDAs, confidentiality agreements restrict employees, independent contractors, or business partners from disclosing confidential information. This could apply to documents, proprietary formulas, client lists, trade secrets, etc. Just like noncompetes and non-solicitation agreements, employees aren’t legally obligated to sign confidentiality agreements, but this could jeopardize their employment status. These agreements usually apply for a specified number of years, but they can legally remain in effect for as long as the disclosure of the information could do harm to the business. If trade secrets are involved, they would be protected indefinitely under trade secret law, even if a related confidentiality agreement had expired.
According to all state laws (including Georgia noncompete law), the geographic scope of a noncompete agreement can only apply to areas in which the employer does business, or where former employees had significant influence or presence. For example, a noncompete could restrict an employee from joining a competitor or opening their own business in the same city as their former employer, but not in the same state or country. If a noncompete overreaches geographic scope limitations, it could be successfully challenged in court. That being said, Georgia noncompete law allows judges to modify agreements, rather than completely nullifying them. Even if a noncompete is successfully challenged in a Georgia court, it may simply be altered to comply with state law. Interestingly, the GRCA doesn’t actually require geographic scope considerations to be included in noncompetes. Even so, Georgia employers still typically include them, as this makes noncompetes less likely to be disputed in court.
Noncompete law in Georgia only permits employers to ask certain types of employees to sign noncompete agreements. In other words, the validity of noncompetes in Georgia is partly dependent on the role of the employee who signed it. Georgia Code Title §13-8-53 outlines the types of employees that employers can ask to sign a noncompete agreement:
Most of the language above is specific enough to prevent confusion, but the term “key employee” is open to some degree of interpretation. Not a large degree, though; Georgia courts put the burden of proof on employers to demonstrate that “key employees” named in noncompetes really do merit the restrictions of the agreement.
Georgia noncompete law is similar to that of other states’, in that the duration of most noncompetes is between six months and two years. There are exceptions to this, depending on the employee’s role and the nature of the company. If a noncompete agreement has an unjustifiably long duration, this could open up the possibility of a legal challenge from the former employee.
In 2023, the Federal Trade Commission (FTC) ruled that starting September 4, 2024, virtually all noncompete agreements in the US would be banned. The agency justified its decision by arguing that noncompetes stifle competition and innovation, but it faced immediate pushback from states, trade associations, and other entities. If enforced, this federal noncompete law would take legal precedence over state legislation, and constitute a nationwide ban on the majority of noncompetes.
It was thought that the FTC’s noncompete ban would take effect as planned, but a federal court in Texas declared the ban unconstitutional in August of 2024. The ruling was appealed, but on March 7, 2025, the federal government filed a motion to stay proceedings, allowing the Texas federal court’s ruling to stand.
Since the FTC’s noncompete ban was never allowed to take effect, noncompete agreements between employers and employees in Georgia are enforced by the GRCA. As long as noncompete agreements from Georgia employers comply with the GRCA, they’ll be legally binding and enforceable. It can still be difficult to avoid legal gray areas, though; that’s why we help ensure that your noncompetes are legally enforceable, letting you focus on the big picture.
When drafting a noncompete agreement, we encourage employers to consider the following:
Whether an employee is asked to sign a noncompete at the beginning of their employment, or years after being hired, they should keep the following things in mind before agreeing:
Because not all employees could represent unfair competition if they left their current employment relationships. In that case, noncompetes would be too restrictive for the employee compared to the risk of competition they represented to their employers.
Employers have to demonstrate that each noncompete agreement is reasonable, especially concerning geographic scope, the employee’s role, and the noncompete’s duration. If the terms of a noncompete agreement are more restrictive than the law allows, it could be challenged and potentially overturned by a judge. Businesses that partner with us don’t have to draft their own noncompetes and hope for the best; they can be assured that every agreement is both fair and compliant with Georgia regulations.
The best way to ensure compliance with Georgia noncompete law is to consult with qualified professionals. This is beneficial for both employers and employees – employers get protection and peace of mind from valid noncompetes, and employees have confidence that the agreements they’ve signed aren’t overly restrictive.