A proposal to streamline Georgia’s muddled case law on noncompete agreements and to let judges alter disputed employment contracts that contain such agreements has received initial approval from a legislative committee.
House Resolution 178 passed the House Judiciary Committee on a voice vote on Thursday. It sets out which employees can sign contracts that include restrictive covenants, which types of covenants can be included in contracts and how courts should evaluate covenants. It would also allow judges to modify, or “blue-pencil,” restrictive covenants that are too broad instead of declaring them completely unenforceable. Instead, judges would be able to rewrite an agreement to reflect its “original intent,” according to supporters of the bill.
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