In Palmer & Cay of Ga., Inc. v. Lockton Companies, Inc., the Supreme Court of Georgia recently held that a non-solicitation of customers provision is enforceable even though it is not limited to customers served by the employee within a specific time period prior to the employee’s termination. Departing from other cases in which non-solicitation of customers provisions were not enforced unless they were temporally limited (i.e., prohibiting the employee from soliciting customers that the employee served in the two years prior to the employee’s termination), this decision represents a significant victory for Georgia employers seeking to protect their current customer relationships.
If you would like an evaluation of the legality of the restrictive covenants you currently are using, or if you are interested in learning how properly drafted restrictive covenants can greatly protect your business interests and customer base, please contact Rob Capobianco or the Elarbee Thompson attorney with whom you normally work.