After a heated debate on both sides of the issue, Amendment 1 in Georgia has passed in yesterday’s voting with an overwhelming majority of 68% approval. The Amendment changes how non compete agreements are enforced in Georgia by strengthening enforcement of restrictive covenants.Where prior to the new non compete interpretation, courts in Georgia have resisted blue penciling restrictive covenants to make them enforceable, the new changes significantly strengthen the enforceability of non compete covenants in Georgia.
The political debate over Amendment 1 boiled over onto Twitter and local news outlets, where businesspeople and members of the public contended that the Amendment would stifle innovation in Georgia in a large Vote No campaign. Supporters argued that the Amendment was necessary to protect businesses and competitiveness of Georgia’s industry.
Regardless of the political viewpoints, there is no denying the passage of Amendment 1 in Georgia will dramatically change how non compete clauses function and are enforced. The text of Amendment 1 reads:
“Shall the Constitution of Georgia be amended so as to make Georgia more economically competitive by authorizing legislation to uphold reasonable competitive agreements?”
The legislation that is referred in this authorization was passed by Georgia’s Legislature and can be read in full here.
Because the law covers contracts written only after passage, it is imperative that business owners and employers who are concerned with their non compete clauses and covenants conduct an immediate review of contracts with a qualified attorney. Contact the IchterThomas firm for an evaluation of your contract today.