Legal Question in Employment Law in Georgia
non-compete
If I signed a non-compete and since then have been both downgraded to a lower title (From President when the company was bought) to Vice President as part of signing the non-compete to Sales Representative today and at the same time my pay today is on pace to be 60% less than what I made last year and is on pace to be 50% less than what they quoted me I would make this year. I have a new supervisor as well. Together are these not enough material changes to relinquish me from underneath the grasp of the current non-compete so I can leave and make a decent living elsewhere in my market without worrying about them squashing me with non-compete lawsuites? I am in GA and the corporate office is in WA.
2 Answers from Attorneys
Re: non-compete
In addition to what Scott said, the enforceability of noncompetes varies widely depending on the state. Since your company is based in Washington and you are based in Georgia, it will be important to know which state's laws apply. I have litigated noncompetes both under Washington law and Georgia law, and Georgia law is by far more favorable to an employee. In Georgia, noncompetes need to be drafted very carefully to be enforceable. If they are not properly drafted (and, in my review of hundreds of them, I have found that most are not properly drafted), the courts will not enforce them at all. Under Washington law, on the other hand, if a nocompete is overly broad, a court can refine the agreement to make it reasonable and enforceable.
That being said, even if a noncompete says that it will be interpreted according to Washington law, Georgia courts will use Georgia law unless there is an "exclusive venue" provision saying that any litigation (or, as is often the case with noncompetes) arbitration must be filed in Washington.
It is worth the couple of hundred bucks it would cost you to have the agreement reviewed by an expert in restrictive covenant agreements.
Feel free to contact me at the e-mail listed below if you have additional questions.
Re: non-compete
A lawyer will have to review the agreement. Does the contract say that enforceability changes with job title or income? That is just one of many questions that require a review of the contract to answer. If you are asking whether changes in duties or income somehow invalidates all similar contracts, the answer is no.