Appellate Practice Attorney serving New York, NY
Your husband signed what is known as a restrictive covenant. In many states (I don't know specifically about Georgia) these are only enforceable to the extent that they are reasonably required to protect the employer's legitimate interests. Thus, for example, an agreement prohibiting a cashier from working as a cashier anywhere in the US for 25 years after she leaves her employment is unlikely to be enforced, while an agreement which prohibits a doctor from starting her own practice within 2 blocks of her old boss's practice within 3 months of leaving is likely to be enforced. You should consult a lawyer about the enforceability of the agreement your husband signed, as there are many factors (e.g. was your husband privy to any trade secrets of his former employer, does he have any special skills, did he receive separate consideration for signing the restrictive covenant, etc. etc. etc) which would go into that determination; it can't be done in a quick email. However, if the restriction is enforceable, and contains the provisions which these clauses usually do (can't tell for sure without seeing it) it probably will make no difference if the business is in your name, or is incorporated, or an llc., your husband would still be breaching his contract by going into a competing business within 2 years after leaving his old job.
Answered on Sep 19th, 2012 at 11:38 AM