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Georgia Non-Compete Agreement

Georgia enforces employee non-compete agreements that are reasonable in time, area, and scope under the Restrictive Covenants Act. Attorney review available.

Introduction

Georgia governs the non-compete, a worker's promise not to compete with a business for a set time and area after leaving, through the Georgia Restrictive Covenants Act, which applies to contracts entered on or after May 11, 2011. Georgia enforces employee non-competes, but only within limits set by statute. Under the Georgia Restrictive Covenants Act (O.C.G.A. Section 13-8-50 et seq.), which applies to contracts entered into on or after May 11, 2011, a restrictive covenant is enforceable so long as it is reasonable in time, geographic area, and scope of prohibited activities (Section 13-8-53(a)). A post-employment non-compete does not reach every worker: it is enforceable only against employees who customarily solicit customers, customarily make sales, manage the enterprise or a recognized department, or qualify as a key employee or professional. For a former employee, a restraint of two years or less is presumed reasonable in time, while a restraint longer than two years is presumed unreasonable (Section 13-8-57(b)). Section 13-8-56 supplies further presumptions: a geographic territory covering the areas where the employer does business is reasonable, and the scope is measured by the employer's business. If a court finds a covenant overbroad, it does not automatically throw the whole clause out. Georgia law lets a court modify, or blue-pencil, the covenant so long as the change does not make it more restrictive than as originally drafted (Section 13-8-53(d)). Georgia has no salary or income threshold; enforceability turns on the employee's role and the reasonableness of the restriction, not on pay. Employers may also protect confidential data through the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.). This page explains Georgia's rule and offers a template scoped to those limits. It is a state-law overview, not a promise that any given clause will hold up.

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Key Things to Know

  1. 1

    The Georgia Restrictive Covenants Act (O.C.G.A. Section 13-8-50 et seq.) enforces a non-compete, an employee's promise not to compete after leaving, only against defined workers such as those who solicit customers, make sales, or manage, and only when it is reasonable in time, area, and scope.

  2. 2

    Georgia enforces a non-compete under the Georgia Restrictive Covenants Act (O.C.G.A. Section 13-8-50 et seq.) so long as it is reasonable in time, geographic area, and scope of prohibited activities (Section 13-8-53(a)). The Act applies to contracts entered into on or after May 11, 2011.

  3. 3

    Georgia has no salary or income threshold for a non-compete. Enforceability turns on the employee's role and the reasonableness of time, area, and scope, not on how much the employee earns, so do not import another state's wage floor.

  4. 4

    A post-employment non-compete reaches only defined employees: those who customarily solicit customers, customarily make sales, manage the enterprise or a department, or are a key employee or professional (Section 13-8-53(a)). Rank-and-file workers outside these categories generally cannot be bound.

  5. 5

    For a former employee, a restraint of two years or less is presumed reasonable in time and a restraint over two years is presumed unreasonable (Section 13-8-57(b)). A geographic area covering where the employer does business is presumed reasonable (Section 13-8-56).

  6. 6

    If a covenant is overbroad, a Georgia court may modify, or blue-pencil, it so long as the change does not make it more restrictive to the employee than as originally drafted (Section 13-8-53(d)), rather than voiding the entire clause as older Georgia law did.

  7. 7

    Georgia employers may also protect confidential information with a confidentiality or non-disclosure agreement and the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.), which are not subject to the same time and territory limits as a non-compete.

Key decisions before you file

Before you file a Non-Compete Agreement in Georgia, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.

Open the Non-Compete Agreement guide

Customize your Non-Compete Agreement Template with DocDraft

GEORGIA COVENANT NOT TO COMPETE (Employee non-compete under the Georgia Restrictive Covenants Act, O.C.G.A. Section 13-8-50 et seq.)

GEORGIA NOTICE: This covenant is enforceable only if it is reasonable in time, geographic area, and scope of prohibited activities (Section 13-8-53(a)), and only against an employee who customarily solicits customers, customarily makes sales, manages the enterprise or a department, or is a key employee or professional. For a former employee, a restraint of two years or less is presumed reasonable in time (Section 13-8-57(b)). Keep the terms no broader than needed.

  1. PARTIES. This Covenant Not to Compete is made on [DATE] between [EMPLOYER NAME] (Employer) and [EMPLOYEE NAME] (Employee).

  2. COVERED EMPLOYEE. The Employee acknowledges that, in the role of [JOB TITLE], the Employee [ ] customarily and regularly solicits the Employer's customers or prospective customers; [ ] customarily and regularly makes sales or obtains orders or contracts; [ ] manages the enterprise or a recognized department and directs the work of two or more employees; or [ ] is a key employee or professional, as described in Section 13-8-53(a).

  3. CONSIDERATION. This covenant is supported by [the Employee's employment or continued employment and the mutual promises in this agreement, and, if applicable, describe additional consideration such as a bonus, raise, promotion, or access to confidential information].

  4. LEGITIMATE BUSINESS INTEREST. The Employer has a protectable interest in [DESCRIBE, e.g. trade secrets, confidential business information, customer relationships and goodwill, or specialized training the Employer provides to the Employee].

  5. RESTRICTION. For [PERIOD, presumptively reasonable up to two (2) years] after the Employee's employment ends, the Employee will not [DESCRIBE the competitive activity, limited to what is necessary to protect the interest above] within [GEOGRAPHIC AREA, describing the territory where the Employer does business].

  6. CUSTOMER NON-SOLICITATION. For the same period, the Employee will not solicit business from the Employer's customers with whom the Employee had material contact, for products or services competitive with the Employer's business (Section 13-8-53(b)).

  7. REASONABLENESS AND MODIFICATION. The parties intend this covenant to be reasonable in time, area, and scope. If a court finds any restriction overbroad, the parties agree the court may modify, or blue-pencil, it under Section 13-8-53(d) so long as the change is not more restrictive to the Employee than as originally drafted.

  8. CONFIDENTIALITY AND TRADE SECRETS. The Employee will not use or disclose the Employer's confidential information or trade secrets, consistent with the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.). This obligation is independent of the restriction above.

  9. GOVERNING LAW. This agreement is governed by Georgia law.

[EMPLOYER NAME] [EMPLOYEE NAME]

Signature and date Signature and date

Note: Georgia enforces employee non-competes within limits (Georgia Restrictive Covenants Act, O.C.G.A. Section 13-8-50 et seq.). Keep the duration, area, and scope no broader than necessary; a two-year restriction is presumptively reasonable and courts may blue-pencil an overbroad term (Section 13-8-53(d)). Confirm the employee falls within a covered category before using this. For the generic template and other states, see the full Non-Compete Agreement template hub.

Georgia Requirements for Non-Compete Agreement

Enforceable Within Statutory Limits

In Georgia an employee non-compete is enforceable under the Georgia Restrictive Covenants Act (O.C.G.A. Section 13-8-50 et seq.) so long as it is reasonable in time, geographic area, and scope of prohibited activities (Section 13-8-53(a)). The Act applies to contracts entered into on or after May 11, 2011. A covenant that reaches further than necessary is not automatically valid.

No Income Threshold

Georgia has no salary or income threshold that makes a non-compete valid or invalid. Enforceability turns on whether the worker falls within a covered employee category and whether the time, area, and scope are reasonable under the Georgia Restrictive Covenants Act, not on the employee's compensation. Do not rely on any other state salary figure for a Georgia worker.

Only Covered Employees Can Be Bound

A post-employment non-compete in Georgia reaches only employees who customarily and regularly solicit customers or prospective customers, customarily and regularly make sales or obtain orders, hold a management role directing at least two employees with hiring or firing authority, or qualify as a key employee or professional (Section 13-8-53(a)). A worker outside these categories generally cannot be held to a non-compete.

Two-Year Duration Presumption

For a former employee, O.C.G.A. Section 13-8-57(b) directs a court to presume a restraint of two years or less reasonable in time and to presume a restraint of more than two years unreasonable. A term over two years is not automatically void but is harder to defend and may be blue-penciled down. This presumption applies to covenants not tied to the sale of a business.

Reasonable Geographic Area

Under O.C.G.A. Section 13-8-56, a geographic territory that includes the areas where the employer does business during the relationship is presumed reasonable, and the scope of competition restricted is measured by the employer's business. A defined territory tied to where the employer actually operates is easier to defend than a boundless one, though a customer non-solicit under Section 13-8-53(b) does not require a stated geographic area.

Courts May Blue-Pencil

If a covenant is overbroad, O.C.G.A. Section 13-8-53(d) lets a Georgia court modify, or blue-pencil, a covenant that is otherwise void and unenforceable, so long as the modification does not make it more restrictive to the employee than as originally drafted. This reversed Georgia's older rule, under which a court would generally strike an overbroad employment covenant entirely rather than narrow it.

Customer Non-Solicitation and Material Contact

Georgia lets an employee agree in writing to refrain, for a stated period after termination, from soliciting the employer's customers with whom the employee had material contact, for competing products or services (Section 13-8-53(b)). A customer non-solicit is narrower than a full non-compete and does not require a stated geographic area to be enforceable, making it a common alternative for Georgia employers.

Trade-Secret Alternative and FTC Context

Georgia employers may also protect confidential data with a confidentiality or non-disclosure agreement and the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.), which are not subject to the same time and territory limits as a non-compete. The 2024 Federal Trade Commission non-compete rule was set aside by a federal court before it took effect, so it is not currently binding; Georgia's Restrictive Covenants Act independently governs regardless of the federal rule's fate.

Frequently Asked Questions

Yes, within limits. Under the Georgia Restrictive Covenants Act (O.C.G.A. Section 13-8-53(a)), a restrictive covenant is enforceable so long as it is reasonable in time, geographic area, and scope of prohibited activities. A post-employment non-compete is enforceable only against employees who customarily solicit customers, customarily make sales, manage the enterprise or a department, or are a key employee or professional. A covenant that reaches further than needed is not automatically valid; a court measures it against those limits.

There is no fixed maximum, but O.C.G.A. Section 13-8-57(b) provides that for a former employee a court presumes a restraint of two years or less to be reasonable in time and presumes a restraint of more than two years to be unreasonable. A term over two years is not automatically void, but it is harder to defend, and a Georgia court may blue-pencil it down to a reasonable period rather than strike the clause entirely.

Under O.C.G.A. Section 13-8-53(a), a post-employment non-compete in Georgia reaches only employees who customarily and regularly solicit customers or prospective customers, customarily and regularly make sales or obtain orders, hold a management role directing at least two employees with hiring or firing authority, or qualify as a key employee or professional. A worker outside these categories generally cannot be held to a non-compete, though a narrower confidentiality or customer non-solicit agreement may still apply.

No. Georgia has no wage or income threshold that turns a non-compete on or off, unlike states that only permit them above a set salary. Enforceability in Georgia depends on whether the worker falls within a covered employee category and whether the time, area, and scope are reasonable under the Georgia Restrictive Covenants Act, not on the employee's pay. Do not rely on another state's salary figure for a Georgia worker.

Often yes. O.C.G.A. Section 13-8-53(d) lets a Georgia court modify, or blue-pencil, a covenant that is otherwise void and unenforceable, so long as the modification does not make the covenant more restrictive to the employee than as originally drafted. This changed the older Georgia rule, under which a court would generally strike an overbroad employment covenant entirely instead of narrowing it, so drafting since 2011 matters a great deal.

It depends on the type of restraint. For a general non-compete, O.C.G.A. Section 13-8-56 treats a geographic territory that includes the areas where the employer does business as reasonable, so a defined area helps. For a customer non-solicitation clause under Section 13-8-53(b), a Georgia employer may restrict soliciting customers the employee had material contact with, and an express geographic term is not required for that narrower restriction to be enforceable.

They use a confidentiality or non-disclosure agreement and rely on the Georgia Trade Secrets Act of 1990 (O.C.G.A. Section 10-1-760 et seq.), which lets a business protect and sue over the misuse of trade secrets. These tools protect confidential information and customer data without the time and territory limits that apply to a non-compete, so a Georgia employer can use them even for workers who fall outside the covered non-compete categories.

No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, the Georgia Restrictive Covenants Act (O.C.G.A. Section 13-8-50 et seq.) independently governs employee non-competes in Georgia, so the federal rule's fate does not change Georgia law today.