Georgia's Restrictive Covenants Act Does Not Require That Restrictive Covenants Contain Express Geographic Restriction

In June 2023, the Georgia Court of Appeals held in North American Senior Benefits, LLC v. Wimmer that an employee non-solicitation covenant must contain an express geographic limitation to be enforceable. On September 4, 2024, however, the Georgia Supreme Court reversed the Georgia Court of Appeals' Wimmer decision and held that the Georgia Restrictive Covenants Act (GRCA) does not require that restrictive covenants contain an express geographic restriction to be enforceable, but non-competition and employee non-solicitation covenants governed by the Section 13-8-53(a) of GRCA must still be reasonable in geographic scope.

The Georgia Supreme Court's Decision

In Georgia, the enforceability of restrictive covenants is governed by the GRCA, OCGA § 13-8-50 et seq. The GRCA provides that employment contracts that restrict competition must be "reasonable in time, geographic area, and scope of prohibited activities." OCGA § 13-8-53(a). (Different standards apply to