One Down, Two to Go – Georgia’s Restrictive Covenant Act Moves Closer to Certainty

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As we have written previously, the enactment of Georgia’s Restrictive Covenant Act has been stained with uncertainty as to its effective date. While Georgia voters overwhelmingly passed a constitutional amendment in November of 2010 which was intended to pave the way for the Act to become effective the day after the election, glitches in the framework of the amendment caused doubt to set in as to whether the Act would be effective on January 1, 2011 – or ever.

House Bill 30 was introduced at the beginning of the legislative session in January 2011 with the goal of eliminating a constitutional challenge and making the Restrictive Covenant Act effective upon the signature of the Governor. Last Tuesday, February 22, 2011, House Bill 30 cleared its first hurdle, receiving approval from Georgia’s House of Representatives by a vote of 104 to 58.

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Published In: General Business Updates, Constitutional Law Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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