Georgia has taken a monumental step forward with the passage of comprehensive tort reform legislation, signed into law by Governor Brian Kemp on April 21, 2025. This transformative shift promises to create a more balanced and equitable legal environment, delivering significant protections and savings for businesses across the state. Set to take effect on July 1, 2025, these reforms are poised to alleviate the heavy burden of excessive litigation that has long stifled local enterprises.
For Georgia's business community, the impact of these reforms is deeply personal. From family-owned grocery stores to local trucking companies and neighborhood childcare facilities, the cost of Georgia’s litigation environment has been a formidable challenge. In 2022 alone, tort costs in the state reached nearly $20 billion, with small businesses bearing nearly half of these expenses. These are the businesses that form the backbone of Georgia’s economy, providing jobs, services, and a sense of community. Yet, they have often been the first to feel the financial strain of frivolous lawsuits and inflated damages.
Key Reforms
Governor Kemp's tort reform package is designed to create a fairer legal system that protects businesses, consumers, and communities. By ensuring that businesses are only held responsible for what they can directly control, the legislation provides much-needed relief, particularly for those operating in areas with higher crime rates. This allows businesses to focus on growth and investment without the constant fear of being sued for circumstances beyond their reach.
The reforms also address the issue of inflated medical damages, requiring plaintiffs to show the actual amount paid for medical bills. This change ensures that successful plaintiffs are fairly compensated while protecting businesses and consumers from inflated costs that drive up insurance premiums and prices. Additionally, the legislation prevents attorneys from using arbitrary comparisons to influence jury awards for pain and suffering, empowering juries to make fair decisions based on the facts of the case.
A Brighter Future for Georgia
By supporting these changes, business owners can concentrate on expanding their operations and serving their communities without the looming threat of legal battles. Governor Kemp’s leadership in advancing this legislation reflects a commitment to fostering a stronger, more competitive Georgia where businesses can thrive.
The Bottom Line: All Policy is Local
The benefits of these reforms extend beyond the courtroom. Reduced legal costs and a balanced legal system will make Georgia a more attractive place for investment and entrepreneurship. When local businesses succeed, communities flourish—jobs are created, services expand, and neighborhoods grow stronger. This is a clear example of how all policy is local, as these reforms will directly impact the businesses and families that form the backbone of Georgia’s economy.
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About the author
Stephanie Walton
Senior Director, Digital and Editorial Communications
