Alpharetta Enforcing Non-Competes Lawyer
Providing effective guidance in contractual business matters in Georgia
Non-compete agreements are designed to prohibit former employees from working for competitors or opening the same type of business themselves. Executives, managers, sales personnel and employees with specialized knowledge may be subject to signing them. However, these agreements are highly scrutinized by the courts because they limit the work options of employees who are leaving their companies. Non-competes that are overly restrictive may not be enforceable. At the Reddy Law Firm, P.C., in Alpharetta, we prepare non-competes that are feasible and can stand up in court. Our attorney has years of experience assisting businesses throughout Georgia in the full range of employment contract matters.
Understanding non-compete agreements
Non-competes fall under the category of restrictive covenants in employment law, along with non-solicitation contracts and confidentiality agreements. All these contracts place limits on employee actions. Non-solicitation contracts prevent workers who are leaving their companies from soliciting customers or other employees. Non-disclosure agreements prohibit the sharing of confidential information outside the company. We can help you determine the types of agreements you may need for your business and prepare contracts that are enforceable.
Legal requirements for enforceability in Georgia
When the enforceability of a non-compete agreement is challenged, the Georgia courts will examine it for reasonableness. Key factors the courts consider include the duration and geographic scope of the non-compete and whether it serves a legitimate business purpose. While agreements of reasonably limited scope and duration are generally enforceable under Georgia law, the Federal Trade Commission has issued a based on most non-competes. The FTC ban is currently being challenged in the courts. Our firm can review any existing agreements for enforceability and update or prepare new contracts to meet any changes in the law.
Steps for employers to enforce a non-compete contract
An employer can take various actions when faced with violations of non-compete agreements, including the following:
- Sending a cease-and-desist letter — This letter notifies the former employee that, unless they stop violating the contract, you will take legal action.
- Seeking mediation — Neutral mediators help disputing parties compromise and resolve their differences outside of the courtroom.
- Filing a lawsuit — You can pursue damages caused by the employee’s violation of the non-compete agreement.
Whichever path you take, you should gather evidence of the agreement breach to help prove your case. Evidence can consist of documentation, witness statements and financial records that show what the violation has cost your business. As an experienced labor and employment litigation firm, we will provide counsel and assistance as you pursue the legal remedies available.
Challenges against non-compete enforcement
Common defenses used by employees to challenge non-competes include these:
- The duration of the non-compete ban is excessive. Agreements lasting more than two years are usually considered unreasonable.
- Geographic territory restrictions are too far-reaching.
- The non-compete is unreasonable for the employee’s job level.
- The agreement does not meet the state’s contract requirements.
- The employer has acted in bad faith or has undertaken illegal conduct.
It is advisable to anticipate these grounds for contest when drafting non-compete agreements. In deciding on enforceability, a court may modify an overly broad agreement, rather than void them entirely, by using a practice known as “blue penciling.” Our law firm can help you draft an agreement that includes severable clauses so that the agreement can be altered to preserve its overall validity.
Contact our Alpharetta non-compete enforcement agreement attorney for help
When you need help drafting, negotiating or enforcing a non-compete agreement to safeguard your business interests, turn to the Reddy Law Firm, P.C., in Alpharetta, serving clients throughout Georgia. Call us at 678-629-3246 or contact us online to arrange a consultation with our employment contracts’ lawyer.