2. The territory restrictions are unreasonable
The territory restrictions of Pete Palmer’s employment agreement state that the employee will not be employed in the counties of Fulton, DeKalb, Gwinnet, Cobb, Clayton, and Athens-Clarke, Georgia, or at any radio station within 100 miles of WBLR. According to Ga. Code. Ann § 13-8-56:
[A] geographic territory which includes the areas in which the employer does business at any time during the parties' relationship, even if not known at the time of entry into the restrictive covenant, is reasonable provided that:
A. The total distance encompassed by the provisions of the covenant also is reasonable;
B. The agreement contains a list of particular competitors as prohibited employers for a limited …show more content…
v. Palermo, Palermo signed an employment agreement consisting of a restrictive covenant that stated that for a period of two years following termination, Palermo will not “engage in the fire or burglar alarm business as a manager or salesman anywhere within a 50-mile radius of Atlanta, Georgia.” Rollins Protective Services Co. v. Palermo, 287 S.E.2d 546, 548 (Ga. 1982). During Palermo’s employment with Rollins Protection Services Company, Palermo was not authorized by Rollins to conduct business in part of the area that was restricted in the employment contract. Id. at 549. The Supreme Court of Georgia held that “in construing territorial restrictions in any employment contract, the reasonableness of a territory depends, not so much on the geographical size of the territory, as on the reasonableness of a territorial restriction in view of the facts and circumstances surrounding the case.” Id. at …show more content…
Turner, the Georgia Court of Appeals held “that where a restrictive covenant is not limited to an area where an employee worked, it will be considered overly broad per se unless a strong justification exists for such a restriction.” Peachtree Fayette Women’s Specialists, LLC v. Turner, 699 S.E.2d 69, 73 (Ga. Ct. App. 2010). A physician brought a declaratory judgment against a former employer asserting that a noncompetition agreement was unenforceable. Id. at 71. The agreement was that for two years after termination the employee could not provide obstetrical and gynecology medical services in a five-mile radius from Employer’s office, at Piedmont Fayette Hospital, Fayetteville, Georgia, and at Piedmont Hospital, Atlanta, Georgia. Id. at 71. Turner’s employment contract provided that her duties at Peachtree Fayette Women’s Specialist would include practicing medicine at their offices located at Piedmont Fayette Hospital and Piedmont Hospital, Atlanta. During Turner’s employment, however, Turner never practiced at Piedmont Atlanta and the entire Peachtree Fayette Women’s Specialists staff dropped its privileges there. Id. at