New Georgia Employment Laws Change Definition of Employment, Restrict Local Laws Regulating Work Hours

Georgia Governor Brian Kemp has signed into legislation two measures addressing the employment relationship. The primary, Act 809 (H.B. 389), alters the definition of employment for functions of unemployment advantages. The second, Act 823 (S.B. 331), precludes native governments from regulating the scheduling or work hours of a personal enterprise’s workers.

Act 809: Classification of Workers for Unemployment Profit Functions

Act 809 seeks to increase the sorts of staff who could possibly declare unemployment advantages. It additionally ensures, nonetheless, that the character of a person’s work will in the end decide the existence of an employer-employee relationship. Act 809 will turn out to be efficient on July 1, 2022.

In Georgia, solely people who’re deemed “workers” could also be eligible for unemployment advantages. Impartial contractors will not be entitled to such advantages. Act 809 modifications the definition of employment to incorporate any companies carried out by a person for wages. Beneath this definition, nearly all of staff would qualify as “workers,” except the Georgia Division of Labor makes a opposite willpower. Primarily based on Act 809’s expanded definition of employment, extra staff could possibly acquire unemployment advantages from a enterprise.

Beneath the brand new legislation, a person is not going to qualify as an “worker” solely whether it is proven that the person is free from management or course over the efficiency of companies for an organization and is typically engaged in an impartial commerce, occupation, occupation, or enterprise. The next seven components are to be thought of in making this willpower:

• Means to work for different firms or holding different employment on the identical time;
• Freedom to just accept or reject work assignments with out consequence;
• Lack of a minimal variety of hours to work or orders to be obtained;
• Means to set their very own work schedule;
• Lack of oversight or directions in regards to the companies to be carried out;
• Absence of territorial or geographic restrictions; and
• Lack of a requirement to carry out, behave, or act in a sure method associated to the efficiency of companies.

The legislation additionally gives particular requirements that apply within the context of music business professionals, trip share community companies, and sure supply companies.

For Georgia companies now, a employee’s classification as an “worker” or an “impartial contractor” is extra essential than ever. Act 809 creates an enforcement mechanism by implementing a civil penalty, paid to the Georgia Division of Labor, if a enterprise incorrectly classifies its staff. Beneath the brand new legislation, the Commissioner units the quantity of the civil penalty by evaluating the variety of people who have been improperly labeled and the frequency of misclassifications.

Thus, Georgia companies have to be aware of the classifications assigned to every of its staff.

Act 823: Preemption of Native Governments From Enacting Sure Legal guidelines

Act 823 precludes native governments from enacting legal guidelines regulating work hours, scheduling, or worker output of personal companies. The measure turned efficient on Might 5, 2022.

Act 823 is Georgia’s newest try at drawing companies to the state by precluding native governments from enacting restrictive wage and hour legal guidelines. Georgia legislation already bars cities and native governments from adopting legal guidelines relevant to personal employers. These legal guidelines govern issues reminiscent of minimal wage, additional time, worker advantages, and pay associated to scheduling modifications.

Act 823 amends current legislation to ban native governments from enacting legal guidelines relevant to personal employers that may govern work hours, scheduling, and worker output.

In the meantime, in lots of different states, native governments have enacted native ordinances addressing these subjects. Clearly, Governor Kemp and the state legislature want to differentiate the state from the legal guidelines of those different states and native governments.