What You Need to Know About the Misclassification of Employees in Georgia
Georgia classifies employees as “exempt” or “not exempt” based on certain criteria. Here’s what you need to know about the misclassification of employees in Georgia.
In Georgia, employers are responsible for determining whether their employees are exempt or not exempt. If they misclassify employees, they face penalties in Georgia.
Common Exempt Positions and Jobs in Georgia
Some jobs in Georgia are frequently exempt from overtime pay and minimum wage requirements. These jobs must satisfy certain criteria to be considered exempt.
Executive, administrative, and professional employees, as defined by the Department of Labor, are exempt from overtime pay and minimum wage requirements.
Sales employees of retail or service establishments may be exempt from overtime pay requirements if they work on a commission basis. The employee’s earned commission must be more than 1.5 times the minimum wage per hour.
Computer professionals are also exempt from overtime pay requirements if they earn more than $27.63 per hour.
Related: Georgia Minimum Salary for Exempt Employees: Updated 2022
Drivers, driver’s helpers, loaders, and mechanics employed by motor carriers are exempt from overtime pay requirements. The employee’s duties must impact the safety of vehicles that transport passengers or goods either interstate or internationally.
Salespeople and mechanics at automobile dealerships are exempt from overtime pay.
Employees working on small farms are exempt from overtime pay and minimum wage. Some employers working at seasonal and recreational establishments are also exempt from overtime pay and minimum wage requirements.
Other employees are also exempt from overtime pay requirements, including:
- Airline employees
- Railroad employees
- Local delivery drivers or driver’s helpers
- Taxicab drivers
- Newspaper deliverers
- Movie theater employees
- Babysitters on a casual basis
- Firefighters at public fire departments with fewer than five firefighters
- Police officers in public police departments with fewer than five police officers
- Federal criminal investigators
Babysitters on a casual basis, federal criminal investigators, and newspaper deliverers are also exempt from minimum wage requirements.
Employees who earn less than $684 per week or $35,568 per year are not exempt from overtime pay and minimum wage requirements.
Employers are responsible for classifying employees under these requirements and criteria. Failure to correctly classify employees will result in penalties, including fines and potential imprisonment.
Penalties for Misclassifying Employees in Georgia
Since Georgia follows the federal Fair Labor and Standards Act, the federal penalties for misclassification of employees apply.
If Wage and Hour Division investigators find a violation, employers must pay employees for any back payment due to the misclassification. For example, if an employer misclassifies an employee as exempt from overtime pay, the employer must pay the employee for the overtime pay that the employee missed.
If necessary, the Department of Labor can bring suit for back pay. The Department can also bring injunctions to prevent further violations.
Since the Fair Labor and Standards Act prevents the transportation of goods resulting from violations of overtime pay or minimum wage requirements, the Department of Labor can stop the transportation of such goods if it finds violations.
If investigators find that the employer willfully misclassified employees, they will fine the employer a maximum fine of $10,000. If investigators find that the employer willfully misclassified employees for a second time, the employer could face imprisonment.
Related: At-Will Employment in Georgia: What You Need to Know
Willful misclassification of employees can also result in civil money penalties for each violation. As of Jan. 16, 2022, the maximum civil money penalty for each violation of minimum wage or overtime requirements is $2,203.
Georgia does not have any additional penalties for the misclassification of employees.
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