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

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

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

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

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”

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