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Are non-competes enforceable in Georgia? What the Restrictive Covenants Act allows
Georgia enforces non-competes that are reasonable in time, area and scope, but only against certain employees. Here is who can be bound, how long a restriction can last and what a court can do with an overbroad clause.
Responsible attorney: Lou Schwartz, Schwartz & Associates, PC, Atlanta, Georgia. intake@snalawyers.com
Key takeaways
- Georgia enforces a non-compete that is reasonable in time, geographic area and scope of prohibited activity [1].
- A post-employment non-compete generally binds only employees in sales, management, key or professional roles [1].
- For a former employee, a restriction of two years or less is presumed reasonable and more than two years is presumed unreasonable [2].
- A court may narrow an overbroad covenant instead of striking it, but it is not required to [3].
At a glance
- Test
- Reasonable in time, geographic area and scope of activity [1]
- Who can be bound after employment
- Sales, management, key employees and professionals [1]
- Former employee duration
- 2 years or less presumed reasonable [2]
- Seller of a business
- Up to the longer of 5 years or the payment period presumed reasonable [2]
- Overbroad clause
- Court may narrow it; modification is discretionary [3]
On this page
- Are non-competes enforceable in Georgia?
- Who can be bound by a non-compete?
- How long can a non-compete last?
- How broad can the area and activity be?
- Does the FTC non-compete ban apply?
- What should I avoid doing?
- How do I protect my position?
- When does it make sense to talk to a lawyer?
- How was this article prepared?
A Georgia company hires a sales manager and wants to keep her from taking clients to a competitor if she leaves. She wants to know whether the non-compete in her offer letter will hold up. Georgia has a specific statute for this, and it answers most of the question.
Are non-competes enforceable in Georgia?
Yes, when they are reasonable in time, geographic area and scope of prohibited activity [1]. Georgia's Restrictive Covenants Act allows these covenants to protect legitimate business interests, and it sets presumptions that tell courts what counts as reasonable [1] [2] [4].
The statute says
“the court may modify the restraint provision and grant only the relief reasonably necessary”
Who can be bound by a non-compete?
After employment ends, generally only employees in certain roles [1]. The statute covers employees who customarily and regularly solicit customers, who customarily and regularly make sales or obtain orders, who manage the business or a department while directing two or more employees and influencing hiring and firing, or who serve as a key employee or professional [1]. A non-compete against a front-line employee outside those roles is generally not enforceable after the job ends [1].
That limit does not apply to confidentiality terms or to customer non-solicitation terms [1]. An employee may agree not to solicit customers with whom he or she had material contact, and that promise does not need a geographic area to be enforceable [1].
The statute says
“No express reference to geographic area or the types of products or services considered to be competitive shall be required”
How long can a non-compete last?
For a former employee, two years or less is presumed reasonable [2]. More than two years is presumed unreasonable [2]. Other relationships get longer presumptions:
The statute says
“a court shall presume to be reasonable in time any restraint two years or less in duration”
- Distributors, dealers, franchisees, lessees and licensees: three years or less is presumed reasonable [2].
- Owners or sellers of a business: the longer of five years or the period of payments under the sale is presumed reasonable [2].
How broad can the area and activity be?
A territory covering the areas where the employer does business during the relationship can be presumed reasonable if certain conditions are met, and the restricted activity is measured by the employer's actual business [4]. A clause that bars a former employee from any work, anywhere, for any company invites a dispute.
Does the FTC non-compete ban apply?
No. A federal court set aside the FTC's Non-Compete Clause Rule, and the FTC later voted to dismiss its appeals and accept that ruling [5]. For most Georgia agreements, the state statute is the governing law.
What should I avoid doing?
- Using one form for every employee regardless of role.
- Choosing a duration longer than the statutory presumption without a reason you can explain.
- Assuming a court will fix an overbroad clause. Modification is discretionary [3].
- For employees, signing without reading which customers, products and areas the restriction covers.
How do I protect my position?
- Match each restriction to the employee's actual role and territory.
- Keep duration within the presumption that applies to the relationship.
- Use a customer non-solicitation clause where a full non-compete is not available.
- Pair restrictive covenants with confidentiality terms and keep records of what each employee could access.
Use the intake assistant below to describe the agreement and the role involved. An attorney at the firm reviews every request before any document is prepared.
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The firm's intake assistant is AI, not a lawyer. It asks a few routing questions and the names needed for a conflict check. Keep the details of your situation for the attorney. An attorney at the firm reviews every request.
When does it make sense to talk to a lawyer?
When you are drafting restrictive covenants for a sales or management team, buying or selling a business, enforcing a covenant against a departing employee, or considering a job offer while bound by an existing agreement.
What's settled, what depends and what's unclear?
Reasonableness in time, area and scope is the test [1]; two years or less is presumed reasonable for former employees [2].
Whether a particular employee's duties fit a covered role, and whether the employer can show a legitimate business interest.
Agreements governed by another state's law, and agreements signed before Georgia's 2011 statute, follow different rules.
Whether a court will narrow a specific overbroad clause, since modification is discretionary [3].
Before signing or enforcing a non-compete, confirm the employee's role is covered, the duration and area fit the statutory presumptions and the agreement defines the restricted activity.
How was this article prepared?
It was drafted with AI assistance from the primary sources listed below, then reviewed, edited and approved by Lou Schwartz, the responsible attorney, on the review date shown. Each source was checked on the date listed beside it. The article is general information about Georgia law, not legal advice, and reading it does not create an attorney-client relationship.
Sources
- O.C.G.A. § 13-8-53 (enforcement of restrictive covenants)
- O.C.G.A. § 13-8-57 (presumptions as to reasonable time)
- O.C.G.A. § 13-8-54 (construction and modification)
- O.C.G.A. § 13-8-56 (presumptions as to scope and area)
- Federal Trade Commission, Files to Accede to Vacatur of Non-Compete Clause Rule
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- Every heading is a question a reader would ask.
- Every legal statement cites a primary source checked on the update date.
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General information, not legal advice. Reading this article or using the intake assistant does not create an attorney-client relationship.