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Georgia Legislature Approves Ballot Referendum to Overhaul Law on Employee Non-Compete Agreements

On April 29, 2010, the Georgia Senate unanimously passed H.R. 178, a resolution permitting Georgia voters to consider a ballot referendum that would overhaul the states existing law regarding employee non-compete agreements. The resolution, which was approved by the Georgia House of Representatives earlier in April, clears the way for Georgia voters to consider whether they will approve an amendment to the state constitution during the November 2, 2010 general election. If approved by voters, the proposed constitutional amendment would remove the last impediment to a companion statute passed by the General Assembly last year, which would provide employers with greater flexibility in enforcing non-compete agreements and other restrictive covenants against former employees who had access to trade secrets and other confidential information.

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