Jimmy Buffett once eloquently said that “without geography, you’re nowhere.” But how does that insight apply to restrictive covenants that lack explicit geographic limitations in Georgia? While Jimmy never got to find out, we now have some much-needed clarity from the Georgia Supreme Court.
For many years, most Georgia litigants, individuals, and businesses operated under the assumption that some restrictive
Continue Reading Georgia Supreme Court Reverses Lower Court Rulings and Holds Non-Recruitment Provisions do not Need to Contain Explicit Geographic Limitations
On September 18-20, Seyfarth partners Dawn Mertineit, Eric Barton, and Robert Milligan will be attending the Intellectual Property Owners Association’s Annual Meeting in Los Angeles. This event offers over two dozen education sessions, networking opportunities, committee meetings, and more.
Everyone generally agrees that people and organizations should be able to protect their proprietary and valuable information. But one area where we’ve seen legislative fretting is when that principle potentially impedes reporting wrongdoing to the government. As we have previously blogged, 
It’s a fact pattern that repeatedly arises in trade secret cases: a company hires someone who has a confidentiality agreement with their former employer. Just before (or shortly after) being hired, the individual emails confidential information from their former employer to individuals at their new job. The former employer files suit against the individual, but also asserts a claim for tortious interference with contractual relations against the new employer.
Earlier this week, the Colorado state legislature voted to pass HB22-1317, which if signed into law by Democratic Governor Jared Polis, would place Colorado among several other states with the strictest bans on restrictive covenant agreements for low-wage workers. A spokesperson for Governor Polis has already indicated that the governor plans to sign the bill. If executed, the bill would become effective 90 days after the legislature adjourns (early August 2022), so immediate and very substantial changes appear to be right around the Rocky Mountain road.
It is well established that the Georgia Trade Secret Act (“GTSA”) includes a preemption clause holding that the Act “supersede[s] conflicting tort, restitutionary, and other laws of this state providing civil remedies for misappropriation of a trade secret.” O.C.G.A. § 10-1-767(a). The GTSA does not, however, preempt (1) “[c]ontractual duties or remedies, whether or not based upon misappropriation of a trade secret”; (2) “[o]ther civil remedies that are not based upon misappropriation of a trade secret”; or (3) “[t]he definition of a trade secret contained in [another Georgia statute].” O.C.G.A. § 10-1-767(b). In other words, the GTSA preempts any non-contractual claims that allege the misappropriation of a trade secret. See Bd. of Regents of the Univ. Sys. Of Georgia v. One Sixty Over Ninety, LLC, 830 S.E.2d 503, 510 n.13 (Ga. Ct. App. 2019) (“[T]he Trade Secrets Act superseded the common law tort of misappropriation [of trade secrets].”)
Thursday, December 16, 2021