Important Information on GA Non-Competes and Restrictive Covenants

Tuesday June 22, 2010
Governor Sonny Perdue recently signed House Bill 173 which provides, in part, for the enforcement and/or permitted modification of contracts that restrict or prohibit competition in certain commercial agreements. By its own terms, however, this act (Act 64) shall not become effective unless and until an amendment to the Constitution of Georgia providing for the enforcement of restrictive covenants in commercial contracts is ratified in the November 2010 general election. If the constitutional amendment concerning restrictive covenants in commercial contracts is ratified, House Bill 173 will apply to all such contracts both prospectively and retroactively. If such amendment is not so ratified, then House Bill 173 will be automatically repealed. We are keeping abreast of all developments regarding this House Bill and the ever-changing law regarding non-competes and other restrictive covenants.

This bulletin provides a general summary of recent legal developments. It is not intended to be and should not be relied upon as legal advice.