What Does the Non-Compete Referendum Mean for Contracts in Georgia?

by admin | cary ichter on September 30, 2010

This November, Georgia voters will be deciding via referendum on a proposed amendment to the constitution affecting non-compete agreements. If passed, this amendment would give an advantage to employers in enforcing strong non-compete language in contracts.

Although a bill in the legislature has already passed to this effect, it is currently barred from taking effect due to the strong protections in the Georgia Constitution against restrictive covenants against trade and competition.

“General Assembly shall not have the power to authorize any contract or agreement which may have the effect of or which is intended to have the effect of defeating or lessening competition, or encouraging a monopoly, which are hereby declared to be unlawful and void.”

Thus, House Bill 173, signed on April 29, 2009, will not be effective unless the voters amend the Georgia Constitution this November.

If passed, this constitutional amendment will dramatically affect how non-compete agreements are written and enforced in the future. Contact us now for an evaluation of how it might affect you!

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