Each of the states within the Eleventh Circuit governs the use of restrictive covenants through statutes. Generally, both Florida and Alabama permit the use of restrictive covenants where the restrictive covenant is “reasonably necessary” to protect a legitimate business interest, but the legitimate business interest requirement is applied differently in both jurisdictions. Alabama law prohibits any contract that prevents an individual from exercising a lawful profession, trade, or business of any kind, unless it falls within one of the 6 restrictive covenant exceptions specified in the statute. Florida, however, permits the enforcement of contracts that restrict or prohibit competition during or after the term of restrictive covenants, provided that such contracts are reasonable in time, area, and line of business. Georgia, which recently amended its statute, used to be one of the most difficult states in which to enforce restrictive covenants against employees. It now permits Georgia courts to partially enforce overbroad restrictive covenants.
Statutes Governing Restrictive Covenants
Requirements for Enforcement of Restrictive Covenants
|Alabama||AL ST § § 8-1-190 to 8-1-197|| |
|Florida||FL ST § 542.335|| |
|Georgia||GA ST § § 13-8-50 to 13-8-59|| |