Legal Question in Employment Law in Georgia
Employment Agreement
After 1 year of employment I am being asked to sign an agreement with the following paragraph:
Employee acknowledges that Employer’s business plan is premised on the expansion of Employer’s business to law enforcement and related entities throughout the United States of America. Employee acknowledges that such business plan is reasonable in view of the nature of Employer’s business and the advantage gained from such an expanded market. Employee agrees that the limitation established by the Agreement shall apply to activities conducted in the United States of America and this restriction shall remain in full force for a period of three (3) years next following the cessation of employment. As to activities conducted in the State of Georgia, North Carolina, and South Carolina, this limitation shall apply and shall remain in full force for a period of five (5) years next following the cessation of employment. The parties agree that the period of restriction and the geographical area of restriction imposed by this Agreement are fair and reasonable and are reasonably required for the protection of Employer.
I am being asked to sign that I can not work in law enforcement software for 5 years nationwide. Is that legal?
2 Answers from Attorneys
Re: Employment Agreement
The issue is whether such an agreement is enforceable based on reasonableness. With other things taken into consideration, courts have found that a restriction for 6 months to 1 year within a limited geographic location is reasonable and enforceable.
(Other issues related to termination for failure to sign the contract and negotiation possibilities are not a part of this limited response.)
In your case, it may be worth the time and consultation fee to consult with an employment lawyer, where he or she can obtain more facts about the provisions in the agreement and your industry.
Re: Employment Agreement
Are you a Georgia employee? Does your agreement state that Georgia law applies? I am vastly simplifying things, but if the answer to both questions is yes, the agreement might not be enforceable. Paula is correct that noncompete agreements must be reasonable to be enforceable, and the laws of every state are different as to what is reasonable. In Georgia, five years is a pretty long duration and may not be enforceable, depending on the circumstances. Paula is also correct that you probably should get with an attorney to review the contract for you. It could mean a lot if you ever chose to leave the company or if that choice is made for you.
Feel free to contact me if you have additional questions.