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Non-Compete and Trade Secrets Blog

Posts from April 2011.

Georgia's non-compete statute is inching closer to reality. A bill intended to clear up any controversy is on the Governor's desk awaiting his signature or veto. Stayed tuned for future updates.

A recent survey suggests that employers are planning to increase their hiring during the second quarter of 2011. Are your employees poachable? Consider these factors, and take action now.

Settlement of lawsuits is almost universally considered a good thing because, among other things, the parties are able to end their dispute immediately. But some cases suggest that settlement might simply postpone the battle until another day. According to these courts, this is true because restrictive covenants in settlement agreements are subject to the same strict judicial scrutiny applied to employment agreement covenants. Consequently, if an employee violates a covenant contained in a settlement agreement, the parties might find themselves back in court litigating the same issues they thought they had settled.

Special caution is required concerning restrictive covenants that are ancillary to employment agreements for a fixed term. Whether such covenants may be enforced could depend upon: (1) written renewal of the employment agreement upon expiration; and/or (2) the inclusion of language expressly stating that restrictive covenants contained in the agreement survive termination of the agreement.

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