QUESTION

I signed a non compete in Atlanta under duress for a promotion and was told I would end my career there. A few weeks later I was transferred to

Asked on Jul 25th, 2011 on Business Law - Georgia
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Alabama then back to Atlanta and then to Savannah, Ga. Is the non compete I signed under duress in Atlanta enforceable if I return to Atlanta with a competitor?
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1 ANSWER

Business Law Attorney serving Cincinnati, OH at Cors & Bassett, LLC
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In most states, covenants not to compete between an employer and employee are enforceable, within reason.  Therefore if you return to Atlanta and Atlanta is within the geographical area covered by your noncompetition agreement and the time covered by your noncompetition agreement has not run out, and there is no other reason your agreement can be challenged, then it would be enforceable.  The fact that you characterize your signing the contract as signing "under duress" does not factor into whether the contract is enforceable.  If employers want their employees to sign noncompetition agreements, the employees can either sign the agreements and continue working, or not sign and stop working for the employer.  It is highly unlikely that an employee would succeed in a claim that the signing was not the employee's voluntary act and that the contract should not be binding on the employee. In most states the enforcement of noncompetition agreement for employees and former employees is judged by a reasonableness standard.  The agreement has to be limited in time, and in scope of what constitutes competition, and limited in geographical scope that relates to the employer's business.  For example, a dental office in Chicago could not obligate an employee dentist in Chicago not to compete in dentistry for 2 years in the states of Illinois and New York, because most dental offices obtain their patients from the local area so the dental office can only protect its local area from competition by a former employee.  However, even if the area that the noncompetition agreement covers cannot be enforced, in some states a judge can construe the noncompetition agreement and narrow it so that only the enforceable area would be covered.  If your noncompetition agreement was signed before 2010 in Georgia, it may not be enforceable if it covers too broad a territory, too long a time period, or too broad a business activity.  But after November of 2010, Georgia judges can narrow a signed noncompetition agreement to make it reasonable and enforce the narrowed version of the agreement. California  has a statute saying the noncompetition agreements with employees are not enforceable, but the courts in California will enforce noncompetition agreements to the extent necessary to protect the employer's trade secrets.  Enforcement of noncompetition agreement is very much a product of state law and state customs, so it is important to consult an attorney in Georgia about this particular agreement. I am not licensed to practice law in the state of Georgia and this answer is not intended to be legal advice specific to your situation.  Please consult an attorney in Georgia who can give you advice about your specific situation.
Answered on Aug 15th, 2011 at 2:04 PM

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