The state House of Representatives fixed a legislative error Tuesday, bringing one step closer to reality major changes in how noncompete agreements in the state can be enforced.
The 104-58 vote, though, revealed the ongoing debate over what impact Amendment 1 could have on Georgia workers. Business interests such as the Georgia Chamber of Commerce have supported the measure, arguing it would encourage firms to locate their headquarters and top workers in the state.
Critics, including some venture capitalists and technology companies, complain that the restrictions would stifle new investment and their ability to recruit the most talented employees.
“I see this as applying noncompete requirements to every employee, and my concern is that goes too far,” Rep. Carl Rogers, R-Gainesville, said after voting against House Bill 30. “To me, it means any constituent could be out of work for two years.”
The bill's sponsor, Rep. Wendell Willard, chairman of the House Judiciary Committee, argued that the increased control that businesses would have over former workers who might get jobs from competitors only applies to specialized workers or managers.
The amendment, which passed with 68 percent of the vote in November, allows courts to modify agreements between firms and their workers instead of accepting or rejecting them outright.
But legislation leading up to the amendment deferred to the amendment language to set a date for the change to take effect. It didn’t.
So, until the house bill is passed by the state Senate and signed into law by Gov. Nathan Deal, the new rules are vulnerable to legal challenges and may not be enforceable.
“We just had a screw-up in dates,” said Willard, R-Sandy Springs. “The amendment is already in place.”
The bill now heads to the Senate for review.
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