Legal Definitions - grandfather clause

Definition: A grandfather clause is a provision in a law or regulation that allows individuals or businesses who were already engaged in a regulated activity to continue doing so even after the law or regulation changes. This clause limits how changes will be applied to legal relations and activities existing prior to the change.

For example, if a new law requires all power plants to be carbon neutral, a grandfather clause may allow currently operating power plants to be exempt from the new requirement for a certain period of time, giving them time to prepare for the change.

The term "grandfather clause" originated from a set of voting laws in the Southern United States after the Civil War. These laws required individuals to pass literacy tests, own property, and pay poll taxes in order to vote. However, exceptions were made for individuals whose grandfathers had voted before the Civil War. This effectively prevented most African Americans from being able to vote after the implementation of these laws.

Grandfather clauses can be beneficial for businesses or individuals who relied on the prior system and would be critically harmed by sudden changes. However, they can also perpetuate inequalities and discrimination, as seen in the example of the voting laws in the South.