Grandfather clause

Grandfather Clause – A grandfather clause is a provision in a new law, regulation, or policy that permits existing individuals, businesses, or practices to continue under the rules of the previous law, even after new requirements or restrictions are implemented. This clause is commonly included to protect prior investments, ongoing operations, or rights from being adversely affected by changes in regulations. It ensures a smooth transition and prevents unfair penalties on those who complied with earlier laws.

Example: If a city enacts a new zoning law restricting building heights, existing buildings that exceed the new limit may continue operating legally due to a grandfather clause...