{"id":792,"date":"2011-01-28T22:22:29","date_gmt":"2011-01-28T22:22:29","guid":{"rendered":"https:\/\/www.bfvlaw.com\/legislation-introduced-which-would-re-enact-georgias-new-restrictive-covenants-legislation\/"},"modified":"2011-01-28T22:22:29","modified_gmt":"2011-01-28T22:22:29","slug":"legislation-introduced-which-would-re-enact-georgias-new-restrictive-covenants-legislation","status":"publish","type":"post","link":"https:\/\/www.bfvlaw.com\/legislation-introduced-which-would-re-enact-georgias-new-restrictive-covenants-legislation\/","title":{"rendered":"Legislation Introduced Which Would Re-enact Georgia\u2019s New Restrictive Covenants Legislation"},"content":{"rendered":"<p>As this blog and others have discussed, the question of when Georgia\u2019s new restrictive covenants law went into effect is somewhat unclear.\u00a0 By its own terms, House Bill 173 went into effect on November 3, 2010, the day after voters ratified an amendment to Georgia\u2019s Constitution to allow the legislature to legislate concerning restrictive covenants.\u00a0 <span>See<\/span> H.B. 173, 150th Leg., Reg. Sess. (Ga. 2009), at \u00a7 4.<\/p>\n<p>However, under Art. X, \u00a7 1, \u00b6 6 of the Georgia Constitution, an amendment to the Constitution becomes effective on the first day of January following its ratification, unless the amendment or the resolution proposing the amendment provides otherwise.\u00a0 Neither the amendment nor House Resolution 178 which provided for the ballot referendum on the amendment states that the amendment would go into effect immediately.\u00a0 Therefore, the amendment to the Constitution did not go into effect until January 1, 2011.<\/p>\n<p>This \u201cgap\u201d was apparently unintended by the legislature.\u00a0 To address this issue and the questions which have been raised about it, House Bill 30 was recently introduced.\u00a0 This bill would reenact House Bill 173.\u00a0 Section 1 of the legislation indicates that it intends to cure the issue of when the law when into effect:\u00a0 \u201cDuring the 2010 legislative session the General Assembly enacted HR 178 \u2026, the constitutional amendment necessary for the statutory language of HB 173 \u2026, and the voters ratified the constitutional amendment on November 2, 2010.\u00a0 It has been suggested by certain parties that because of the effective date provisions of HB 173 \u2026, there may be some question about the validity of that legislation.\u00a0 It is the intention of this Act to remove any such uncertainty by substantially reenacting the substantive provisions of HB 173 \u2026, but the enactment of this Act should not be taken as evidence of a legislative determination that HB 173 \u2026 was in fact invalid.\u201d\u00a0 <span>See<\/span> H.B. 30, 151th Leg., Reg. Sess., LC 29 4456 (Ga. 2011), at \u00a7 1.<\/p>\n<p>This legislation has not yet been voted on.\u00a0 If it passes in its current form, it may create additional uncertainty in determining exactly what date the new law started to apply or will start applying.\u00a0 Like House Bill 173, House Bill 30 applies only to contracts entered into on and after it becomes effective.\u00a0 Also, as drafted, it repeals all conflicting laws.\u00a0 There thus might be an argument that the new restrictive covenants legislation would not apply to any agreements drafted prior to <em>House Bill 30<\/em> going into effect.\u00a0 That is, the new law might arguably not apply to restrictive covenants in agreements entered into after January 1 but before House Bill 30 goes into effect.\u00a0 As such, and as the proposed legislation is expected to pass, employers who previously intended to revise the restrictive covenants in their employment agreements at the beginning of this year may wish to monitor this legislation and hold off on implementing new agreements until after its passage.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As this blog and others have discussed, the question of when Georgia\u2019s new restrictive covenants law went into effect is somewhat unclear.\u00a0 By its own terms, House Bill 173 went into effect on November 3, 2010, the day after voters ratified an amendment to Georgia\u2019s Constitution to allow the legislature to legislate concerning restrictive covenants.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4,9],"tags":[26,25,22],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - 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