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Non-Compete and Trade Secrets Blog

A Kansas employer sees its choice-of-law provision invalidated, has to proceed under Wisconsin law, and survives to tell the tale!

On May 11, 2011, Governor Deal signed House Bill 30, Georgia’s Restrictive Covenant Act. The upshot of the signing of the legislation is that a new day has dawned in Georgia for restrictive covenants signed on or after May 11, 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.

The enactment of Georgia's Restrictive Covenant Act has been stained with uncertainty as to its effective date. The Georgia House of Representatives recently took action to clear up the picture, and the ball is now in the Senate's court, and soon to be in the Governor's.

The effective date of Georgia's recently enacted non-compete legislation has been widely questioned. A recently introduced, but as of yet not passed, bill in the Georgia House aims to end the debate.

By now, it is almost old news that Georgia voters overwhelmingly passed a constitutional amendment authorizing a new statutory framework for enforcement of restrictive covenants. But a question has quickly emerged as to when the new law is effective.

In a landslide victory with 68% of the votes, the constitutional amendment authorizing a new statutory framework for enforcement of restrictive covenants in Georgia was passed by Georgia voters on November 2, 2010. The new framework goes into effect immediately, but it will only be applied to restrictive covenants that are signed November 3, 2010 or thereafter.

In a state that is otherwise generally recognized as being “employer friendly,” Georgia law has long been known for its “unfriendliness” towards non-competes and other post-employment restrictive covenants. However, a radical shift in that law is on the horizon – and the fate of the sea change actually resides in the hands of Georgia voters.

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