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Employee Restrictive Covenant Agreement

Cover Terms

The terms below are incorporated into and form part of this agreement.

Employer[Legal name of the entity that employs the employee]
Employee[Full legal name of the employee]
Employee Title / Position
Effective Date[Effective date of this agreement — the date the last party signs. It anchors the duration presumptions stated in Cover Terms.]
Governing LawGeorgia
Confidentiality
Trade Secrets DurationFor as long as the information remains a trade secret
Other Confidential Information DurationFor as long as the information remains confidential
Employee Non-Solicitation
Duration24 months
Market benchmark (based on 76 companies)HideShow
TermFrequency
12 months44.7%
Selected default24 months34.9%
18 months11.2%
Why this selected default?

Why is this the selected default?

24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative. The Act sets no express duration presumption for the no-hire category, so the uniquely-essential scope limit does the primary category work; counsel should size the term to the workforce interest actually protected.

Customer Non-Solicitation
Duration24 months
State-law basis 24 months

Reference only — not part of this agreement.

12 months sits well inside the presumptively reasonable window for a current-customer non-solicit: eighteen months, or for as long as post-separation consideration is paid, whichever is greater. Counsel may extend toward eighteen months, or longer while post-separation consideration is paid, where the interest supports it.

No Business with Covered Customers
Duration24 months
State-law basis 24 months

Reference only — not part of this agreement.

12 months sits within the current-customer window. Because non-dealing has no category of its own, it is drawn to fit inside the current-customer non-solicit exception, and its duration tracks that category's presumption.

Non-Investment
Duration24 months
Non-Disparagement
Duration24 months

Standard Terms

1. Defined Terms

“Competitive Business” means the business activities described in Cover Terms under Competitive Business.

“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee.

“Covered Customers” means customers and prospective customers with whom Employee had material contact during the 2 years before termination of employment, meaning customers Employee dealt with on Employer's behalf, whose dealings with Employer Employee coordinated or supervised, about whom Employee obtained confidential information in the ordinary course of business, or from whom Employee earned compensation, commissions, or earnings.

“Covered Employees” means employees with whom Employee worked or whom Employee managed during the 24 months before termination of employment.

“Passive Public Holdings” means ownership of securities of a publicly traded company representing less than five percent of any class of such company's securities, and interests in diversified mutual funds, index funds, and exchange-traded funds that may hold securities of a Competitive Business.

“Protected Interests” means Employer's Confidential Information, Trade Secrets, substantial customer relationships, and customer goodwill.

“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.

“Restricted Territory” means the geographic area described in Cover Terms under Restricted Territory, if any is stated.

“Solicit” means to directly or indirectly, or by assisting others, solicit or attempt to solicit business, including actively seeking prospective customers, but does not include responding to general advertisements or unsolicited inquiries not initiated by Employee.

“Trade Secrets” means information that derives independent economic value from not being generally known and is the subject of reasonable efforts to maintain its secrecy.

2. Recitals, Consideration, and Protected Interests

Each covenant is supported by and no broader than necessary to protect Employer's Protected Interests. In consideration for this agreement, Employer provides Employee with access to Employer's Confidential Information, specialized training, and Employer's customer goodwill and relationships.

3. Timing and Employee Acknowledgements

Employee acknowledges that the restrictions in this agreement are reasonable and necessary to protect Employer's Protected Interests. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement. This agreement is effective as of the Effective Date listed in Cover Terms.

4. Confidential Information and Trade Secret Protection

Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's trade-secret obligations continue while the information remains a trade secret. Other confidentiality obligations continue for the duration specified in Cover Terms and end when the information is no longer confidential. This obligation does not restrict Employee's use of the general knowledge, skill, and experience Employee acquired during employment.

Drafting Note Confidentiality duration

Confidentiality and trade-secret covenants protect information interests even against employees outside the non-compete categories. O.C.G.A. § 13-8-53(e) lets these obligations run for as long as the information stays confidential, without the durational or category limits that apply to non-competes, so an information interest a non-compete cannot reach is still protectable through a confidentiality covenant .

5. Permitted Disclosures and Protected Conduct

Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by applicable law, including Section 7 of the National Labor Relations Act (29 U.S.C. § 157); (d) testifying truthfully in legal proceedings or making disclosures required by law, court order, or a government investigation; or (e) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable under any federal or state trade-secret law for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.

6. Return, Deletion, and Certification of Company Property

Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request.

7. Non-Solicitation of Employees

During the Restricted Period, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee. This restriction does not prohibit Employee from providing a professional reference upon request or from hiring a person who responds to a general advertisement not directed specifically at Employer's employees.

Drafting Note Employee non-recruitment covenants under the Act

A Georgia employee non-recruitment or no-hire covenant is analyzed under the Restrictive Covenants Act, not the common law: Belt Power v. Reed placed these covenants within the Act's ambit, and in Wimmer the Supreme Court reviewed a two-year non-recruitment provision under O.C.G.A. § 13-8-53(a) . That places the clause under the same reasonableness standard, the same two-year employee presumption, and the same discretionary, narrowing-only modification as every other covenant — and, after Wimmer, without any express-geographic-term requirement — so a no-poach clause reaching beyond the colleagues the departing worker actually worked with or supervised is measured for overbreadth like any other restraint.

8. Non-Solicitation of Customers

During the Restricted Period, Employee must not Solicit the business of any Covered Customer for purposes of providing products or services that are competitive with those provided by Employer's business.

Drafting Note Material-contact customers

A Georgia customer non-solicitation covenant reaches only material-contact customers, not the employer's entire customer base. O.C.G.A. § 13-8-53(b) confines these covenants to customers the employee actually dealt with and to competitive products or services, so a clause sweeping in the whole customer list is measured against the Act's reasonableness standard and exposed as overbroad .

9. No Business with Covered Customers

During the Restricted Period, Employee must not accept, service, or do business with any Covered Customer, regardless of whether Employee or the Covered Customer first initiated contact.

10. Non-Investment

During the Restricted Period, Employee must not acquire or hold any active ownership interest in, serve as a director, officer, manager, or advisor to, or have material economic participation in any Competitive Business. Passive Public Holdings are permitted.

11. Non-Disparagement

During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, or exercising rights protected by law, including Section 7 of the National Labor Relations Act.

12. Physician and Health Care Practitioner Covenants

The restrictive covenants apply to a physician or other health care practitioner only if the covered function identified in Cover Terms applies to Employee.

13. No Conflicting Obligations

Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.

14. Notice to Future Employers and Other Third Parties

Employer may disclose the existence and terms of this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach this agreement. Employee consents to this disclosure. Employer will limit any such disclosure to factual statements about the covenants in this agreement.

15. Tolling During Breach

Each Restricted Period begins when Employee's employment ends and expires on its stated end date, notwithstanding any breach.

Drafting Note Tolling past contractual expiration

A Georgia covenant that banks on time added after its stated end date is on uncertain ground. In Daneshgari v. Patriot Towing Services, the Court of Appeals reversed a trial court for extending an injunction past the contractual expiration of a non-compete — even against a party violating the injunction — because Georgia precedent rejects equitable extension of a covenant's period . Whether a self-executing contractual tolling clause fares any better is undecided, so the stated end date functions as the real one, and the protection that holds comes from prompt enforcement inside the term rather than from a clause purporting to stretch the restraint past its expiration.

16. Remedies

Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate. Employer may seek temporary and permanent injunctive relief and any other appropriate and effective remedy available at law or equity, including relief available under applicable trade-secret law to prevent actual or threatened misappropriation of trade secrets. Injunctive relief runs only through the covenant's stated Restricted Period.

17. Enforceability and Severability

If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect. Each restrictive covenant in this agreement is intended to be independently enforceable.

18. Survival and Expiration of Each Covenant

Each restrictive covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms. Obligations under the Confidential Information and Trade Secret Protection section survive for as long as the information remains confidential or a trade secret. All other provisions survive to the extent necessary to enforce rights that arose during employment.

19. Assignment and Successors

Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns.

20. Governing Law, Venue, and Dispute Process

This agreement is governed by the law listed in Cover Terms. Disputes will be resolved in the courts of that state, subject to non-waivable rights under applicable law.

Drafting Note Foreign choice-of-law and the Georgia touchstone rule

A choice-of-law clause selecting a more permissive state does not move a Georgia-based covenant out from under the GRCA. Under Motorsports of Conyers v. Burbach, Georgia law remains the touchstone for enforceability in Georgia courts even where the contract selects another state's law, and a covenant unreasonable under the Act cannot be rescued by applying foreign law instead . The sequence is fixed — the Act first, the chosen law only if the covenant survives — so a covenant drawn to satisfy the GRCA on its own terms is the one that holds, while a form leaning on a sister-state selection was never localized for Georgia.

21. Entire Agreement, Amendment, Waiver, and Electronic Signatures

This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject. This agreement may be amended only in writing signed by both parties. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.

Signatures

By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.

Employer

Employer: [Legal name of the entity that employs the employee]

Signature:

Signatory Name: [Full name of the authorized signatory signing for the employer]

Title: [Title of the authorized signatory signing for the employer]

Date:

Employee

Signature:

Print Name: [Full legal name of the employee]

Date:

Adapted from OpenAgreements Wyoming and Florida restrictive covenant templates. Licensed under CC BY 4.0.