The obscure subject of employee non-compete covenants has received press attention in the Daily Report in recent weeks. The 2010 session of the Georgia General Assembly passed HB 173 granting power to corporate employers to restrain its employees from the post-employment right to earn a living in their chosen fields. The bill was signed by Gov. Purdue and has been codified in O.C.G.A. �§ 13-8-2.1 and �§ 13-8-50 to -59. An enabling constitutional amendment will be on the ballot in November 2010.
As an advocate for individual rights and private enterprise, I am deeply disturbed by this bill. The effect of the bill will be to license an employer to enforce a contract of adhesion promising that in the event an employee ceases to be employed by that employer, the employee will not be allowed to work in an expanded geographic area, which may, in any way, be in competition with the former employer. The new statute will lower the bar for the ethical treatment of employees. Having read the statute, the term “indentured servant” comes to mind.
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