What labor laws apply when hiring employees?

Labor Laws for Hiring Employees in Georgia

When hiring employees in Georgia, businesses must comply with both federal and state labor laws to ensure proper hiring practices and avoid penalties.

Key Labor Law Requirements

• Employment Eligibility Verification (I-9): Employers must complete Form I-9 for every new hire to verify the employee’s identity and authorization to work in the United States.
• Minimum Wage Compliance: Georgia follows the federal minimum wage rate of $7.25 per hour as of 2026. Ensure payroll systems are set accordingly.
• Overtime Rules: Non-exempt employees must be paid overtime at 1.5 times their regular rate for hours worked over 40 in a workweek under the Fair Labor Standards Act (FLSA).
• Employee Classification: Correctly classify workers as employees or independent contractors to comply with tax withholding, benefits, and reporting requirements.
• Anti-Discrimination Laws: Follow federal Equal Employment Opportunity (EEO) laws prohibiting discrimination based on race, sex, age, disability, and other protected categories.
• Workers’ Compensation Insurance: Georgia requires most employers to carry workers’ compensation insurance to cover work-related injuries.

Operational Considerations

• Recordkeeping: Maintain accurate employee records including hiring documents, payroll, and tax forms for at least three years.
• Reporting Requirements: Report new hires to the Georgia New Hire Reporting Program within 10 days of hire to aid child support enforcement.
• Payroll Setup: Ensure payroll systems handle federal and state tax withholdings, unemployment insurance contributions, and wage payments correctly.
• Compliance Monitoring: Regularly review hiring and employment practices to stay up to date with changes in labor laws and regulations.