On May 11, 2011, Governor Deal signed into law the Georgia Restrictive Covenant Act, House Bill 30, removing uncertainty as to the effective date of the act allowing Georgia employers to use restrictive covenants in contracts with employees. The statutory framework that many thought would become effective after the election in November of 2010 was clouded in uncertainty due to an effective date issue. In an attempt to “remove any such uncertainty”, House Bill 30 was passed by the Georgia House and Senate this past Spring. It became effective for any agreements signed on or after May 11, 2011.
The new law does not require “additional consideration” to support a new agreement with an existing employee. Employers should consider whether an agreement signed prior to the effective date provides the protection the employer seeks.
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