Non-compete agreements are among the most frequently discussed issues in employment law, particularly in Georgia. Employees raise serious concerns: Will signing one prevent me from finding a better job in the future? For employers, they are often viewed as a critical tool for protecting trade secrets, customer relationships, and competitive advantage. That tension leads to the central question: Are non-compete agreements enforceable in Georgia?
The answer is yes — but with limits. Georgia law permits non-compete agreements, but they must meet specific requirements to be upheld in court. If drafted poorly, overly broad, or unreasonable in scope, a non-compete agreement is likely to fail. Because Georgia has a unique legal history with restrictive covenants, understanding when and how courts enforce these agreements is essential.
This guide will provide a closer examination of the rules governing non-compete agreements in Georgia, including how the state’s Restrictive Covenants Act applies, the factors courts consider in determining enforceability, and examples of what works and what doesn’t. We’ll also review how federal developments, like the recent FTC rule banning most non-competes nationwide, interact with Georgia’s state law. Finally, we’ll explain how a law firm like Cantrell Schuette can help both employees and employers navigate these complicated agreements.
What Is a Non-Compete Agreement?
A non-compete agreement is a contractual clause that limits what an employee can do after leaving a company. Typically, it restricts an employee from working for a direct competitor, starting a competing business, or using confidential information to benefit a rival company. Employers argue that these agreements are necessary to protect client relationships, trade secrets, and business investments.
For employees, however, these agreements can feel like handcuffs. A talented professional may leave a company only to discover their non-compete agreement restricts them from working in their field for months or even years. This can limit career mobility, reduce bargaining power, and in some cases, discourage innovation.
Georgia courts recognize this tension, which is why the enforceability of these agreements depends on a careful balance. The law asks: Are non-competes enforceable in Georgia when they protect legitimate business interests, or are they an unfair restraint on trade? The answer depends entirely on how they are written.
Are Non-Competes Enforceable in Georgia?
The short answer is yes — but with clear boundaries. Under the Georgia Restrictive Covenants Act (GRCA), non-compete agreements are enforceable if they are reasonable in duration, geographic reach, and job scope.
Historically, Georgia courts were hostile to these agreements, striking them down as anti-competitive. That changed in 2011, when voters approved the GRCA, allowing employers more flexibility in using restrictive covenants. Now, Georgia is considered more employer-friendly than it was in the past. However, enforceability still hinges on whether the agreement is carefully tailored.
In practice, this means a Georgia court will ask:
- Does the non-compete last a reasonable amount of time?
- Is the restricted geographic area tied to the employer’s actual place of business?
- Are the prohibited activities connected to the employee’s role?
If the answer is yes, non-competes are enforceable in Georgia. If not, they are struck down.
Key Legal Rules for Georgia Non-Compete Agreements
Georgia law provides specific guidance on what makes a non-compete agreement enforceable:
Courts generally view a restriction of up to two years as reasonable for employees. Longer terms are sometimes enforceable in cases involving the sale of a business. Still, they are not typical in employment contracts. If a company attempts to restrict an employee for five years, Georgia courts often reject such attempts.
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Geographic Scope
The restricted area must match the territory where the employer actually operates. For example, a local Atlanta business cannot bar a former employee from working anywhere in Georgia or nationwide. Such broad restrictions will likely be found unenforceable.
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Job-Related Restrictions
A valid non-compete must directly connect to the employee’s actual role. Courts are more likely to enforce agreements that prevent a salesperson from soliciting the same clients they worked with, but less likely to implement blanket bans that prohibit the employee from working in any capacity at a competing company.
Georgia also employs the “blue pencil” doctrine, which allows courts to strike out overbroad terms while preserving the enforceable parts of a contract. This means judges don’t always throw out the entire agreement — they may modify it instead.
Examples of Enforceable vs. Unenforceable Non-Competes
Because the question of whether non-competes are enforceable in Georgia is fact-specific, it’s helpful to look at examples:
- Enforceable Example: A one-year restriction preventing a software sales manager from soliciting clients they personally worked with within a 20-mile radius of the employer’s Atlanta office.
- Unenforceable Example: A five-year restriction barring a nurse from working in any healthcare facility anywhere in Georgia.
- Enforceable Example: A two-year restriction preventing an executive from starting a competing business in the same city where the employer operates.
These examples highlight the rule: the narrower and more job-specific the non-compete agreement, the greater the chance that Georgia courts will enforce it.
Federal Policy vs. Georgia Law
On a national level, the landscape is shifting. In April 2024, the Federal Trade Commission issued a rule banning nearly all non-compete agreements nationwide.. The FTC argued that these contracts suppress wages, limit competition, and harm workers.
However, the rule is already facing legal challenges, and its implementation could be delayed or blocked. That leaves employees and employers asking: Are non-compete agreements enforceable in Georgia now that the FTC has taken action?
The answer is that, for now, Georgia law still applies. Until the federal ban is upheld and enforced, non-compete agreements remain enforceable in Georgia if they meet the state’s requirements. Georgia’s courts will continue to apply the GRCA, even as the national conversation evolves..
What This Means for Employees and Employers
For employees, the takeaway is this: don’t assume your non-compete agreement is valid just because you signed it. Many contracts contain overreaching language that Georgia courts will not enforce. Workers in industries like sales, healthcare, and technology should be especially cautious and consider having their contracts reviewed by an attorney.
For employers, the lesson is to draft carefully. Non-competes that are too broad will not survive a legal challenge, resulting in wasted time and money. Employers who want to use these agreements successfully should ensure the terms are reasonable and directly connected to legitimate business interests.
In short, the answer to are non-competes enforceable in Georgia is yes. Still, enforceability depends entirely on how they are written.
How Cantrell Schuette Can Help With Georgia Non-Compete Agreements
At Cantrell Schuette, our team of non-compete attorneys understand the high stakes behind the question: are non-compete agreements enforceable? With offices serving clients nationwide and deep roots in Georgia, we bring both a broad perspective and local expertise.
For employees, we review contracts before you sign, challenge overly broad restrictions, and defend your right to work when disputes arise. For employers, we draft non-compete agreements that comply with the Georgia Restrictive Covenants Act, providing the necessary protection without risking unenforceability in court. We also represent both sides in litigation when disputes escalate.
Our role is straightforward, to ensure your agreement is legally sound, strategically drafted, and enforceable when it matters most.
Conclusion
So, are non-compete agreements enforceable in Georgia? Yes — but only if they are drafted correctly. Contracts limited in time, geography, and job duties are far more likely to stand up in court. Overbroad agreements, on the other hand, continue to fail.
As federal reforms unfold, the rules may change again. For now, Georgia’s Restrictive Covenants Act remains the controlling law. Whether you are an employee questioning a restrictive contract or an employer looking to protect your business, Cantrell Schuette offers the insight and experience you need.
With our national reach and Georgia-specific expertise, we help clients navigate one of the most complex questions in employment law: are non-competes enforceable in Georgia?