24 LC 33 9659
House Bill 1490
By: Representative Newton of the 127
th
A BILL TO BE ENTITLED
AN ACT
To amend Article 4 of Chapter 8 of Title 13 of the Official Code of Georgia Annotated,
1
relating to restrictive covenants in contracts, so as to prohibit the enforcement of certain2
covenants and restrictions on physicians in employment or partnership contracts or3
agreements; to delineate covenants not to compete which are valid and enforceable; to4
provide for statutory construction; to provide for adjudication; to provide for an effective5
date and applicability; to provide for related matters; to repeal conflicting laws; and for other6
purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Article 4 of Chapter 8 of Title 13 of the Official Code of Georgia Annotated, relating to10
restrictive covenants in contracts, is amended by adding a new Code section to read as11
follows:12
"13-8-60.
13
(a) Any contract or agreement that creates or establishes the terms of a partnership,14
employment, or any other form of professional relationship with a physician licensed to15
practice medicine that includes any restriction of the right of such physician to practice16
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medicine in Georgia shall be void and unenforceable with respect to said restriction. 17
Restrictions rendered void under this subsection shall include, but shall not be limited to:18
(1) The right to practice medicine in any geographic area for any period of time after the19
termination of such partnership, employment, or professional relationship;20
(2) The right of such physician to provide treatment, advise, consult with, or establish21
a physician/patient relationship with any current patient of the former employer, partner,22
or healthcare professional/entity; and23
(3) The right of such physician to solicit or seek to establish a physician/patient24
relationship with any current patient of the former employer, partner, or healthcare25
professional/entity.26
(b) Notwithstanding subsection (a) of this Code section, a covenant not to compete shall27
be valid and enforceable if:28
(1) The covenant not to compete is agreed upon during the sale of a business. The29
person selling the business and the partners, members, or shareholders, and the buyer of30
the business may agree on a temporary and geographically restricted covenant not to31
compete that will prohibit the seller of the business from carrying on a similar business32
within a reasonable geographic area and for a reasonable length of time; or33
(2) The covenant not to compete is agreed upon in anticipation of the dissolution of a34
business. The partners, members, or shareholders, upon or in anticipation of a dissolution35
of a partnership, limited liability company, or corporation, may agree that all or any36
number of the parties will not carry on a similar business within a reasonable geographic37
area where the business has been transacted.38
(c) Nothing in this Code section shall be construed to render void or unenforceable any39
other provisions in a contract or agreement containing a void and unenforceable covenant40
not to compete.41
(d) A provision in an agreement for clinical healthcare services to be rendered by a42
physician in Georgia is void, unenforceable, and against public policy if the provision:43
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(1) Makes the agreement subject to the laws of another state;44
(2) Requires any litigation or adjudication arising out of the agreement to be conducted45
in another state; or46
(3) Deprives the physician of the substantive protection of Georgia law with respect to47
a controversy arising in Georgia.48
(e) Any provision of a contract or agreement that violates the provisions of this Code49
section is voidable at any time by the physician, and if a provision is rendered void at the50
request of the physician, the matter shall be adjudicated in Georgia and Georgia law shall51
govern the dispute. In addition to injunctive relief and any other remedies available, a52
court may award a physician who is enforcing rights under this Code section reasonable53
attorney fees. For purposes of this Code section, adjudication includes litigation and54
arbitration. This subsection applies only to claims arising under this Code section."55
SECTION 2.56
This Act shall become effective on July 1, 2024, and shall apply to all contracts and other57
agreements entered into on or after January 1, 2011.58
SECTION 3.59
All laws and parts of laws in conflict with this Act are repealed.60
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