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.
The alleged failure of a former employee to abide by a non-compete agreement that was part of her employment contract led her former employer to file a lawsuit in a nearby state. The contract signed by the salon and the worker specified that she was not to take a position with another salon in the same area for two years. After she left the salon, the company claims it discovered that she violated that agreement by taking a job at another salon in the area. Furthermore, the former employee allegedly approached the salon’s customers after she left to obtain their business for her new employer.
The woman’s former employer is seeking damages for profits it claims the company lost due to her breach of the agreement, along with the woman’s earning and profits since she began working for the other company. The Louisiana salon is also asking for damages based on the claim that her actions injured the company and its reputation. The court will have to determine whether or not the company’s allegations are true and if an award of damages is warranted.
Some Georgia businesses might stand to lose more than their reputations if a former employee goes to work for a competitor. That person’s knowledge of proprietary information could cause significant harm to a company. If it is discovered that an employee who signed a non-compete agreement is in breach of contract, it may be possible for the company to be awarded both monetary and non-monetary damages through the filing of a lawsuit.
Source: The Louisiana Record, “Metairie salon sues former employee alleging breach of non-compete clause in contract“, Kyle Barnett, April 22, 2015