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Debate Brewing on Effective Date of Georgia's New Non-Compete Law

  • December 13, 2010

Even though Georgia’s voter-approved constitutional amendment for a sweeping new restrictive covenant law said it would take effect upon ratification, a debate has been developing in the state over whether that is the effective date.  (For more information on the new law, see our article, Georgia Voters Approve New, Employer-Friendly Non-Compete Law.)

By its terms, the new law (HB 173) would take effect as of the date of the ratification of the constitutional amendment, which occurred on November 2, 2010.  However, over the past four weeks, disagreement has arisen over whether that is the effective date.  The bill that presented the constitutional amendment, House Resolution 178, was adopted during the 2010 legislative session.  There was no effective date in House Resolution 178, and some argue this means the new law will take effect on January 1, 2011.  The new law’s effective date has become so controversial that it has been suggested that the Georgia Legislature might address it at the beginning of the 2011 legislative session.  

In light of these developments, employers should consult with counsel to determine whether employees should be asked to sign new agreements.

We invite our clients and friends to join us at a complimentary webinar on January 12th on the ins and outs of Georgia’s new non-compete law.  Our seasoned professionals will provide practical answers to your most pressing questions:

  • What are the new non-compete rules? 
  • How are they different from prior law? 
  • When do the new rules go into effect? 
  • Who can sign a non-compete now? 
  • Is there special language that should be used? 
  • Can judges blue-pencil now? 
  • What should you do with your prior agreements? 
  • And much more. 

The webinar will offer advice for those wanting to understand the new law and draft agreements in compliance with it.  For your convenience, two sessions will be offered on the 12th.  Please register at

©2010 Jackson Lewis P.C. This material is provided for informational purposes only. It is not intended to constitute legal advice nor does it create a client-lawyer relationship between Jackson Lewis and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome.

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