Can Inclusion Of A Boilerplate Duty Of Loyalty Provision Invalidate Your Covenant Not To Compete?
The Early v. MiMedx Decision
On February 10, 2015, the Georgia Court of Appeals held in Early v. MiMedx Grp, Inc., that a provision in a consulting agreement requiring an employee to devote her full working time to the performance of her duties for the employer was not a loyalty clause but, instead, constituted an illegal restraint on trade. In and of itself, the decision in Early is interesting and will undoubtedly affect how employers draft their duty of loyalty provisions. Perhaps a less obvious consequence of this decision, however, is that by reading a loyalty clause as a restrictive covenant, the Court has now placed employers in jeopardy of having their otherwise valid, and properly tailored, restrictive covenants invalidated if they are contained in an agreement signed prior to MayRead More