Classification of Workers
One of the first decisions you’ll make when bringing someone onto your team is whether they’re an employee or an independent contractor. This distinction carries significant legal and financial implications. Employees receive benefits, have taxes withheld from their paychecks, and are protected by various employment laws. Independent contractors work independently, handle their own taxes, and generally have more control over how they complete their work.
Misclassifying workers can result in severe consequences. The IRS may assess back taxes, penalties, and interest if you classify someone as an independent contractor when they should be an employee. Georgia follows federal guidelines for worker classification, which examine factors such as the degree of control the business has over the worker, the worker’s opportunity for profit or loss, and the permanency of the relationship.
Wage and Hour Compliance
Georgia follows the federal Fair Labor Standards Act (FLSA) for minimum wage and overtime requirements. As of 2025, the federal minimum wage remains $7.25 per hour, though many businesses pay more to attract qualified workers. Non-exempt employees must receive overtime pay at one and a half times their regular rate for hours worked beyond 40 in a workweek.
Understanding which employees are exempt from overtime can be tricky. The FLSA provides exemptions for certain executive, administrative, professional, and outside sales employees who meet specific criteria. These exemptions depend on job duties and salary thresholds, not job titles. Simply calling someone a manager doesn’t make them exempt from overtime if their actual duties don’t meet the legal requirements.
Georgia law requires employers to pay employees at least semi-monthly or monthly. You must establish regular pay periods and communicate them clearly to your team. Keep accurate records of hours worked, wages paid, and deductions taken. The FLSA requires employers to maintain these records for at least three years.
Anti-Discrimination Laws
Federal and state laws prohibit employment discrimination based on protected characteristics. Title VII of the Civil Rights Act prohibits discrimination based on race, color, religion, sex, and national origin. The Age Discrimination in Employment Act protects workers 40 and older. The Americans with Disabilities Act prohibits discrimination against qualified individuals with disabilities and requires reasonable accommodations.
These laws apply to businesses with 15 or more employees, though the age discrimination law applies to businesses with 20 or more employees. Even if your business falls below these thresholds, following anti-discrimination principles protects you from potential liability and creates a fair workplace.
Workplace Policies and Employee Handbooks
An employee handbook communicates your expectations, policies, and procedures to your team. While Georgia doesn’t require handbooks, having one provides numerous benefits. A well-drafted handbook helps prevent misunderstandings, promotes consistency in how you handle situations, and demonstrates good faith in employment disputes.
Your handbook should cover essential topics such as:
- Attendance and leave: Policies on attendance, tardiness, vacation time, sick leave, and compliance with family and medical leave laws.
- Code of conduct: Expected behavior, dress code, use of company property, and social media guidelines.
- Complaint procedures: How employees can report concerns about discrimination, harassment, or other workplace issues.
- Discipline and termination: Progressive discipline procedures and grounds for immediate termination.
- At-will employment: A clear statement that employment is at-will, meaning either party can end the relationship at any time for any lawful reason.
Review your handbook regularly and update it to reflect changes in laws or company policies. Have employees acknowledge in writing that they received and read the handbook. This acknowledgment can be valuable evidence if a dispute arises later.
Termination and Separation
Georgia is an at-will employment state, meaning employers can terminate employees for any reason that isn’t illegal, and employees can quit at any time. However, you cannot fire someone for discriminatory reasons, in retaliation for reporting illegal activity, or in violation of an employment contract.
Document performance issues and disciplinary actions as they occur. If termination becomes necessary, this documentation supports your decision and demonstrates that it was based on legitimate business reasons rather than discriminatory motives. Conduct termination meetings professionally and respectfully. Explain the reason for termination, provide information about final paychecks and benefits continuation, and collect company property.
Georgia law requires employers to pay terminated employees all wages owed by the next regular payday. This includes accrued vacation time if your policy or practice is to pay it out upon termination. Failing to pay final wages promptly can result in penalties and legal claims.
Partner With TOSC for Your Employment Law Needs
Taylor Odachowski Schmidt & Crossland, LLC has served business clients throughout Georgia for decades, earning a Martindale-Hubbell AV rating and a reputation for excellence. Our distinguished team of attorneys boasts over 350 years of combined experience, meaning there are few scenarios we haven’t seen and navigated successfully. We have been in the same location next to the St. Simons Island Lighthouse for decades, taking pride in serving and guiding thousands of clients through legal challenges.
Whether you need help drafting employment policies, navigating a discrimination claim, or ensuring compliance with wage and hour laws, we provide the personalized attention and legal excellence you deserve. Our team also handles business structures, contracts, and general business litigation, allowing us to address the full scope of your company’s legal needs. If you’re a small business owner in Brunswick or the surrounding areas seeking guidance on employment law matters, contact us today to schedule a consultation with our experienced team.
