There are two labor laws in Georgia that come into force this summer that employers should consider when reviewing their policies.
Law 823: Georgia Business and Worker Protection Act
The Protecting Georgia Businesses and Workers Act, SB 331 (Act 823), prevents all local governments from enforcing their own local rules that control scheduling, hours of work or “employee performance”. This means that in Georgia, an employer’s actions regarding scheduling, hours of work, and employee performance are controlled by state and federal laws. All local regulations are now in conflict with the state’s new law.
Law 809: Expanding the definition of “employees” under the Occupational Safety and Health Law of Georgia
Effective July 1, 2022, the Employment Security Law of Georgia, which dictates which workers are eligible for unemployment benefits, was amended to broaden the definition of “employees” and narrow that of “independent contractors.” The nature of the relationship between a company and an employee is now determined by that person’s freedom from control by the company. The law provides seven factors that should be considered when determining the appropriate label. They are those of the individual:
· Ability to work for other companies or hold other employment at the same time;
· Freedom to accept or refuse work assignments without consequences;
· lack of a minimum number of hours of work or, in the case of sales positions, of orders to be obtained;
· Ability to set one’s own work schedule;
· Lack of supervision or direction regarding the services to be performed;
· No territorial or geographic restrictions; and
· Lack of any obligation to perform, conduct or act in connection with the provision of Services.
Employers with employees currently classified as 1099 independent contractors should reassess their relationship with these individuals to determine if they meet the new standard for an employer-employee relationship. Workers misclassified as independent contractors could subject a company to wage and hour obligations and civil penalties of up to $7,500/misclassified worker if they fail to pay state unemployment insurance.
