2021 Georgia Code
Title 13 - Contracts
Chapter 8 - Illegal and Void Contracts Generally
Article 4 - Restrictive Covenants in Contracts
- § 13-8-50. Legislative Findings
- § 13-8-51. Definitions
- § 13-8-52. Application
- § 13-8-53. Enforcement of Covenants; Writing Requirement; Determining Competitive Status; Effect of Failure to Comply; Time and Geographic Limitations
- § 13-8-54. Judicial Construction of Covenants
- § 13-8-55. Requirements of Person Seeking Enforcement of Covenants
- § 13-8-56. Reasonableness Determinations Restricting Competition; Presumptions
- § 13-8-57. Reasonableness Determinations Restricting Time; Presumptions
- § 13-8-58. Enforcement by Third Parties
- § 13-8-59. Construction With Federal Provisions
- Ga. L. 2009, p. 231, § 4, not codified by the General Assembly, provides that the 2009 enactment of this article becomes effective on the day following the ratification at the time of the 2010 general election of an amendment to the Constitution of Georgia providing for the enforcement of covenants in commercial contracts that limit competition and shall apply to contracts entered into on and after such date and shall not apply in actions determining the enforceability of restrictive covenants entered into before such date and that if such amendment is not so ratified, then this article shall stand automatically repealed. The constitutional amendment (Ga. L. 2010, p. 1260) was ratified at the general election held on November 2, 2010.
The former article consisted of Code Sections13-8-50 through13-8-59, relating to restrictive covenants in contracts, was repealed by Ga. L. 2011, p. 399, § 4, effective May 11, 2011, and was based on Code 1981, §§ 13-8-50 -13-8-59, enacted by Ga. L. 2009, p. 231, § 3/HB 173.
Ga. L. 2011, p. 399, § 1, not codified by the General Assembly, provides: "During the 2009 legislative session the General Assembly enacted HB 173 (Act No. 64, Ga. L. 2009, p. 231), which was a bill that dealt with the issue of restrictive covenants in contracts and which was contingently effective on the passage of a constitutional amendment. During the 2010 legislative session the General Assembly enacted HR 178 (Ga. L. 2010, p. 1260), the constitutional amendment necessary for the statutory language of HB 173 (Act No. 64, Ga. L. 2009, p. 231), and the voters ratified the constitutional amendment on November 2, 2010. It has been suggested by certain parties that because of the effective date provisions of HB 173 (Act No. 64, Ga. L. 2009, p. 231), there may be some question about the validity of that legislation. It is the intention of this Act to remove any such uncertainty by substantially reenacting the substantive provisions of HB 173 (Act No. 64, Ga. L. 2009, p. 231), but the enactment of this Act should not be taken as evidence of a legislative determination that HB 173 (Act No. 64, Ga. L. 2009, p. 231) was in fact invalid."
Ga. L. 2011, p. 399, § 5, not codified by the General Assembly, provides, in part, that the enactment of this article shall apply to contracts entered into on and after May 11, 2011, and shall not apply in actions determining the enforceability of restrictive covenants entered into before May 11, 2011.
Law reviews.- For article, "Georgia Gets Competitive," see 15 (No. 4) Ga. St. B.J. 13 (2009). For annual survey of law on labor and employment law, see 62 Mercer L. Rev. 181 (2010). For article on the 2011 enactment of this article, see 28 Ga. St. U.L. Rev. 21 (2011). For article, "Is Liberal Enforcement of Noncompetes Still Good Policy?,” see 26 Ga. St. B.J. 26 (Oct. 2020).