Georgia’s New Restrictive Covenant Law Goes Into Effect January 1, 2011

Georgia’s voters approved a referendum on the November ballot that amended the Georgia Constitution’s prohibition against restraints of trade.  This paved the way for a new body of laws to take effect which will likely rewrite Georgia’s law governing post-employment conduct restrictions.  Although there will be some legal challenges during the next several months, the current thinking in the legal community is that the new law will apply to employment agreements that are signed on or after January 1, 2011.  Stay tuned for more information on this comprehensive, very confusing change in Georgia law.  We are in for several years of litigation before we will know how Georgia’s courts will interpret the law.

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