Most people have heard that a new law governing restrictive covenants in Georgia went into effect in 2011, but many employers have failed to take advantage of the benefits provided them under that law. Perhaps the most far reaching change effected by the new law is the ability of a judge to rewrite a covenant that would otherwise be unenforceable to make it enforceable. No longer do employers have to worry about making sure every word of their restrictive covenants complies exactly with the duties being performed by their employees. The drafting and enforcement of true non-compete covenants is now also much easier.
But to take advantage of the new law’s benefits, a new restrictive covenant agreement must be entered into after the effective date of the law. Such agreements that were entered into before that date are still subject to the sometimes nonsensical and draconian requirements of the old law. Click here for an in depth article on the changes made by the new law.
All insurance agency owners who have not yet taken advantage of the new law’s benefits, should seriously consider having their producers and all other employees who have contact with customers or access to confidential information sign new restrictive covenant agreements that incorporate the changes made by the new law.