Table of contents:

  1. Understanding Georgia Wage Laws
  2. Minimum Wage
  3. Overtime Pay
  4. Misclassification of Independent Contractors
  5. Statute of Limitations
  6. Our Georgia Overtime Pay Lawyers Are Here to Help!
  7. Frequently Asked Questions

Overtime Pay & Labor Laws in Georgia

From agriculture to tourism and manufacturing to film, a variety of business sectors employ millions of people across Georgia.

If you believe you’ve been deprived of the compensation to which you’re legally entitled, please contact the Lore Law Firm. We represent employees who have been subjected to workplace wage and hour violations.

For more information, contact a Georgia overtime laws & wages attorney or visit our comprehensive state labor laws guide.

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Understanding Georgia Wage Laws

Georgia labor laws differ in some respects from the federal Fair Labor Standards Act, or FLSA, for issues like minimum wage. However, for the most part, federal law applies to just about every common workplace compensation-related issue in the state.

Minimum Wage

While the current federal minimum wage is $7.25 per hour, Georgia has set the minimum wage at $5.15 per hour. Regardless of the state’s minimum wage, employers must adhere to the federal minimum wage if they are required to comply with the FLSA. The vast majority of employers in Georgia are subject to the FLSA and must pay employees at least the federal minimum wage as well as overtime pay.

If an employer’s sales are less than $40,000 annually, has a domestic employee, or fewer than five employees, then the Georgia minimum wage does not apply. Farm owners are also not subject to Georgia minimum wage laws. Federal wage laws may still apply.

The Georgia Commissioner of Labor can also approve a lower minimum wage when companies employ disabled people who might otherwise have trouble finding a job.

Overtime Pay

Georgia has no state labor laws specific to overtime pay. As a result, the federal wage and hour law (FLSA) applies and requires overtime pay to covered, nonexempt employees under that law.

An employer that either requires or permits an employee to work overtime is generally required to pay that employee overtime for those hours. Overtime is considered any hours worked over 40 hours per workweek, and the pay for overtime hours is at least one-and-a-half times an employee’s regular pay rate.

An employer doesn’t violate overtime laws by requiring employees to work overtime, (ie “mandatory overtime”), as long as they are properly compensated at the premium rate required by law.

When Does Overtime Not Apply?

Most workers in Georgia are entitled to overtime pay when they work more than 40 hours per week. In certain circumstances, however, there are exceptions.

Employees engaged in executive, administrative, or professional capacities (and paid at least $455 per week on a salary basis) are exempt from the overtime requirement. Note that new minimum salary requirements for these overtime exemptions are scheduled to take effect in January 2020. This change in federal law will also apply to most workers in Georgia when making the determination of whether they are classified as exempt or non-exempt from the overtime pay laws.

Misclassification of Independent Contractors

While there are situations in which workers are legitimately running their own businesses and properly treated as independent contractors who are not entitled to receive overtime, employers are not allowed to mischaracterize employee roles to avoid paying overtime compensation.

Merely labeling a worker as an independent contractor, or even entering into a written agreement, is not enough to avoid the labor laws on overtime pay.  While there is no single definition of “independent contractor” in Georgia labor laws. There are several factors to be considered in determining if a worker in Georgia is an employee or independent contractor (a/k/a 1099 employee)

If properly classified as an independent contractor under Georgia law, workers are typically eligible for only the specific compensation bargained for in a contract.

Commissions and Bonuses

Commissions must be paid according to the terms of the agreement with the salesperson. Forfeiture provisions may be enforceable if they are clearly and unambiguously part of the agreement. The employer cannot recover commission advances to an employee absent an express agreement providing such recovery. A sales representative must sue for breach of contract to recover unpaid commissions and, unlike a lawsuit for recovery of minimum wages, is not automatically entitled to recover attorneys’ fees.

Georgia law offers special protections to sales representatives for wholesale products. They must be paid all commissions owed within 30 days after the termination of the sales representation contract. This right cannot be waived by contract. Employers who violate this provision may be liable to the sales representatives for double damages and attorneys’ fees.  An employer may recover its attorney’s fees if the court determines that an employee’s lawsuit is frivolous.

Bonuses must be paid according to the terms of the employment agreement and the employer’s policies. For example, an employee who quits prior to the end of the year has no right to a bonus if the employment agreement and/or the employer’s policies limit bonuses to those employees who are employed at the end of the year. A promise to pay a bonus is not enforceable if the amount is not specified or reasonably calculable (e.g. a portion of net revenue).

Meals and Breaks

Georgia doesn’t require an employer to provide a meal period or breaks to employees. As a result, federal laws apply.

The FLSA doesn’t require an employer to provide either a meal period or breaks. However, if an employer chooses to do so, short breaks must be paid. Meal or lunch periods don’t have to be paid, so long as the employee is free to do as they wish during that time.

Vacation Leave

Similar to breaks, Georgia doesn’t require employers to provide workers with paid or unpaid vacation leave.

Many employers choose to provide vacation leave as part of a benefits package to attract employees, however. In these situations, employers may set the policies, terms and conditions as to how and when such a benefit is used – including “use it or lose it” policies that state that terminating employees forfeit accrued but unused vacation time. However, any such policy must be clearly communicated to employees through handbooks or other published policies.

Statute of Limitations

Georgia’s deadline for filing an overtime claim adheres to the FLSA, which requires those seeking to recover unpaid back overtime wages to file a lawsuit within two years from the date of the employer’s wage violation. So a lawsuit filed today would be able to seek recovery of back overtime for only the prior 2 (sometimes 3) years.

As an example, suppose you believe that your employer has failed to pay you proper overtime wages since January 1, 2016. Waiting until June 1, 2019, to file your lawsuit means you are only allowed to seek unpaid wages from June 1, 2017, to June 1, 2019.

The statute of limitations may be extended to three years if an employer’s violation of the FLSA was willful. An FLSA violation is deemed willful if the employer knew that its conduct was prohibited by the FLSA or showed reckless disregard.

Our Georgia Overtime Pay Lawyers Are Here to Help!

Following the wage laws in the workplace is vital to just about everyone in Georgia, and labor issues are complex. When problems arise that might impact your compensation, don’t stand idly by, allowing deadlines and your rights to expire.

As Georgia and federal labor law experts, our highly skilled lawyers specialize in fighting against unfair illegal pay practices.

We represent employees paid on salaried, hourly, commission, and day-rate basis in an array of employment litigation matters, including unpaid overtime compensation claims. Our overtime pay attorneys are passionate about protecting the rights of workers and have helped recover millions of dollars in unpaid overtime wages for our clients.

Contact us for a free and confidential review of your situation.

Frequently Asked Questions

How long do I have to bring an overtime pay claim in Georgia?

In most cases, the deadline for an employee working in Georgia to file a claim to recover unpaid overtime wages is 2 years. It is, however, important for employees to understand that the statute of limitations for unpaid overtime wage claims is a look-back period – meaning workers may only recover back pay for the 2-year period (sometimes 3 years) immediately preceding the filing of a lawsuit. Filing a claim with the Federal or Georgia Department of Labor does not stop this statute of limitations from running. Only the filing of a lawsuit can stop the clock and prevent the expiration of an employee’s right to recover back overtime pay.

What is considered overtime in the state of Georgia?

In the state of Georgia, overtime is considered to be all hours actually worked in excess of 40 hours in a single workweek. This is the same standard for overtime as under federal wage and hour law (the Fair Labor Standards Act). Non-exempt employees in Georgia are entitled to time and a-half their regular rate of pay for all hours worked over 40 per workweek.

What type of employees in Georgia are exempt from overtime pay requirements?
Certain workers in Georgia are considered “exempt” from the overtime pay laws – meaning they are not legally required to be paid overtime. In order to be classified as exempt, employees must typically have both 1) a salary that meets the minimum salary threshold set by law, and 2) have job duties that qualify them for a particular overtime exemption. The most common exemptions to the overtime pay requirements for employees in Georgia include: Salaried Administrative employees, Salaried Executives or Supervisory employees, Salaried Professional employees, Computer professionals and Outside salespeople. Other exempt employees can include truck drivers and those who load goods onto trucks that are moving in interstate commerce.

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