New Georgia Law Allows Direct NIL Payments

On September 17, 2024, Georgia Governor Brian Kemp signed an Executive Order allowing Georgia schools to directly compensate their athletes for their name, image, and likeness (NIL).   

The NCAA is expected to remove its ban on direct compensation as part of a proposed settlement agreement. 

The Executive Order states that its purpose is to allow Georgia student-athletes to compete on a level playing field and not forego compensation available to student-athletes in other states while the NCAA settlement is pending.

As reported by Sports Illustrated,  Georgia joins Virginia, which enacted a similar law in July. Both states now permit schools to pay athletes directly for their NIL without the risk of being penalized by the NCAA.  For example, the Executive Order provides that “neither the NCAA, an athletic conference, or any organization with authority over intercollegiate athletics shall take any adverse action against a postsecondary educational institution in the State of Georgia for such institution facilitating compensation, offering compensation, or compensating an intercollegiate student-athlete for the use of such student-athlete’s NIL. . . .” 

The new law was well received by Georgia schools.  The athletic directors of the University of Georgia and Georgia Tech released a joint statement expressing their appreciation for Governor Kemp’s Executive Order:

“We extend our sincere gratitude to Governor Brian Kemp for his leadership today,” the directors said. “In the absence of nationwide name, image and likeness regulation, this executive order helps our institutions with the necessary tools to fully support our student-athletes in their pursuit of NIL opportunities, remain competitive with our peers and secure the long-term success of our athletics programs.”

The Executive Order will remain in effect until a federal law is passed that regulates NIL or a formal settlement with the NCAA on NIL litigation is finalized.

Ken Winkler is a shareholder at Berman Fink Van Horn in Atlanta, where he counsels employers and business owners on employment law and compliance, including workplace issues such as harassment (#MeToo) and discrimination; ADA, FMLA, and other employment laws governing the workplace; employment restrictions (non-competes); and employment and business litigation. Ken obtained his law degree (1993) and B.S.B.A (1990) from The Ohio State University. You can read his blog, SportsFansGuide2HR, and connect with him via LinkedIn.