One of the most vulnerable times for any Georgia company that creates a product is during the development of the product before it is released. If someone either from within the company or outside of it releases a similar product first, it could cost a company a substantial amount of money. This scenario led to a company based in another state to file a fraud and breach of contract lawsuit against one of its former employees.
When a Georgia entrepreneur considers starting a business, one of the issues requiring careful attention is how to protect the assets of the owner in case a claim is ever filed by an individual, entity or taxing authority against the company. The first decisions that will determine what personal liability an owner will confront occur during business formation. However, it is an ongoing process to maintain a level of personal protection.
One of the biggest challenges for Georgia employers is whether to classify an employee as exempt or non-exempt. Non-exempt workers (those paid an hourly wage) are entitled to overtime pay and mandatory meal and rest breaks, but exempt employees (those paid a set salary) are not. This issue is at the heart of a wage and hour complaint filed against a cosmetics retailer on the west coast.
Many Georgia employment contracts include non-compete clauses. When employees leave their place of employment, these provisions preclude them from working for competitors within the same geographic location for a specified amount of time since it could create unfair competition. If former employees fail to abide by this requirement, they are considered to be in breach of contract.