Georgia: “Key Employee” Clarified Under Restrictive Covenants Act
APPLIES TO All Employers with GA Employees |
EFFECTIVE March 5, 2019 |
QUESTIONS? Contact HR On-Call |
The Georgia Restrictive Covenants Act (GRCA) prohibits noncompete agreements with employees unless they “customarily and regularly” solicit customers or make sales, or are a “key employee.” In Blair v. Pantera Enters., Inc., the Georgia Court of Appeals provided clarity on what a key employee is. There, an employee left to work for a competitor and a client followed because of its relationship with the employee. The employee did not solicit customers or make sales, and the employer attempted to enforce the noncompete on the basis of being a key employee.