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1

GENERAL PRINCIPLES

Forums For Adjudicating Employment Disputes

Most employment-related claims may be asserted in courts of general jurisdiction, although certain claims must be first presented to the appropriate local administrative agency (e.g., the EEOC or the NLRB). Claims for unemployment compensation must be asserted before the Georgia Department of Labor.


The Main Sources Of Employment Law

The main sources of employment law in Georgia are federal and state statutes. Employment agreements are governed by general principles of contract law, but there are common law and legislative requirements that may override those general principles in some instances. Individual employment agreements (whether written or oral), collective bargaining agreements, and, in some cases, employee handbooks may form part of a contractual employer-employee relationship.


National Law And Employees Working For Foreign Companies

Federal law, Georgia common law, and Georgia statutes apply to all individuals physically working in the State of Georgia, regardless of nationality or the law otherwise governing the parties’ employment relationship (in certain narrow instances a national treaty with a foreign government may preempt the application of United States law). Parties in Georgia may agree by contract to apply Georgia law to their employment relationship.


National Law And Employees Of National Companies Working In Another Jurisdiction

Federal law applies to all employees working in the United States and, in some circumstances, to employees outside of the United States for domestically-based companies. Georgia law applies only when an employee is physically working in Georgia or when both parties have agreed in writing to the application of Georgia law if either or both parties are located in jurisdictions other than Georgia.


Data privacy

Georgia does not have any laws that provide statutory protections concerning data collected by private employers.

2

HIRING THE EMPLOYEE

Legal Requirements As To The Form Of Agreement

There are no legal requirements as to the form of an employment agreement in Georgia.


Mandatory Requirements
  • Trial Period

    • There is no mandatory trial or probationary period in Georgia.

  • Hours Of Work

    • There are no mandatory requirements regarding hours of work in Georgia, but a “non-exempt” employee who works more than 40 hours per week must be paid overtime pursuant to federal law. In addition, federal and Georgia laws provide different working rules for children and individuals under 18 years old (minors).

  • Special Rules For Part-time Work

    • There are no special rules for part-time work in Georgia.

  • Earnings

    • Georgia has minimum wage requirements in addition to those prescribed by federal law.

  • Holidays/Rest Periods

    • Georgia does not mandate the observance of any specific holidays. State law requires an employer who operates on Saturdays and Sundays to make reasonable accommodations to an employee whose “habitual day of worship” falls on one of those days.

  • Minimum/Maximum Age

    • Georgia’s normal minimum age for employment is 14 (which may be varied in certain cases). Different rules (e.g., on working time or as applied to certain occupations) may apply to children or young workers.

  • Illness/Disability

    • Federal and state laws impose specific requirements for employees with a disability or serious medical condition (see Section 3 – Harassment/Discrimination/Equal Pay).

  • Location Of Work/Mobility

    • Georgia does not have any mandatory requirements regarding location of work.

  • Pension Plans

    • Georgia does not have any mandatory requirements regarding pension plans. Only federal requirements apply to Georgia employees on this subject.

  • Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)

    • Georgia does not have any mandatory requirements regarding parental rights in the employment context (e.g., pregnancy, maternity, paternity, and adoption). Only federal requirements apply to Georgia employees on this subject.

  • Compulsory Terms

    • There are no compulsory terms that must be included in an employment agreement.

  • Non-Compulsory Terms

    • Parties are free to agree to non-compulsory provisions in an employment agreement.


Types Of Agreement

There are different statutes and rules of construction for different types of employment-related agreements (e.g., restrictive covenant and arbitration agreements).


Secrecy/Confidentiality

The Georgia Trade Secrets Act governs the secrecy/confidentiality of employer trade secrets. In addition, parties may enter contractual agreements regarding the protection of trade secrets and confidential information. Such agreements may be governed by the Georgia Trade Secrets Act and Georgia’s restrictive covenant statute.


Ownership of Inventions/Other Intellectual Property (IP) Rights

Georgia has a Trade Secrets Act governing the misappropriation of trade secrets. Ownership of intellectual property rights is determined by federal and state statute.


Pre-Employment Considerations

Georgia employers who have a drug-free workplace program are required to drug test applicants who have received conditional offers of employment.


Hiring Non-Nationals

Employers are obligated by federal law to ensure that all employees are entitled to work in the U.S.; different requirements may apply depending on the nationality/status of an individual applicant for employment.

 

Hiring Specified Categories Of Individuals

There are state-specific restrictions on the types of work that children may perform for employers.


Outsourcing And/Or Sub-Contracting/Temporary Agency Work

There are specific rules about outsourcing and/or subcontracting but usually only in certain public works and public contracting contexts or when a collective bargaining agreement contains such restrictions.

3

MAINTAINING THE EMPLOYEE RELATIONSHIP

Changes To The Contract

Employers are generally permitted to make unilateral changes to an employment agreement unless the contract provides that changes may only be made with the consent of both parties. Georgia is a strong at-will employment state.


Change In Ownership Of The Business

Federal law requires a 60-day notice prior to plant closings or mass layoffs impacting specific numbers of employees in the event of a change in ownership of a business. There is no Georgia law requiring advance notice of layoffs; however, the Georgia Department of Labor requires that an employer file a specialized mass layoff report within 24 hours of a mass separation when 25 or more employees separate from an employer on the same day for the same reason. Collective bargaining agreements or the presence of a union may dictate additional requirements.


Social Security Contributions

There are compulsory social security contributions by both the employer and the employee in Georgia.


Accidents At Work

Employers are required to pay for workers’ compensation insurance and unemployment compensation benefits for their employees in Georgia.


Discipline And Grievance

Georgia law does not govern employee discipline and grievances unless a collective bargaining agreement or a specific contractual provision applies.


Harassment/Discrimination/Equal pay

Federal and state laws prohibit unlawful discrimination and harassment. Employees are protected from discrimination and harassment on the grounds of sex, sexual orientation, age, national origin, race, color, religion, disability, familial, and veteran status. The concept of equal pay (as a form of gender discrimination) is recognized by federal and state statutes.


Compulsory Training Obligations

There are no compulsory training obligations under Georgia law except in the case of certain professions (e.g., physicians, teachers, attorneys, etc.).


Offsetting Earnings

Employers may offset an employee’s earnings under certain circumstances, but federal law requires the payment of at least minimum wage for all hours worked during all pay periods and permissible offsets for employee debts may not result in a payment of less than the applicable minimum wage.


Payments For Maternity And Disability Leave

Maternity leave is often treated the same as disability leave. Federal law requires employers to provide unpaid maternity, disability, and child care leave to certain employees. Georgia workers’ compensation law provides benefits for employees injured on the job.


Compulsory Insurance

Employers must retain insurance for workers’ injuries and for unemployment compensation.


Absence For Military Or Public Service Duties

Federal law governs absences for military or public service duties.


Works Councils or Trade Unions

Under federal law, employees may force an employer in certain cases to recognize and bargain with a union. Individuals who are involved as union representatives are protected from being subjected to certain action (e.g., dismissal) because of their union activities.


Employees’ Right To Strike

Under federal law, groups of employees may strike even if there is no collective bargaining agreement in effect or a formal union organized at the site of employment, subject to limits for public services. Georgia is a “right to work” state, meaning that collective bargaining agreements cannot contain provisions that require union membership and/or the payment of union dues as a condition of employment.


Employees On Strike

Employers typically cannot terminate employees on strike unless the employees engage in serious misconduct while striking or if the strike is unlawful and unprotected activity. However, if employees are on an economic strike, they may be replaced permanently by the employer and may be denied reinstatement if there are no open positions upon the conclusion of the strike or until open positions materialize.


Employers’ Responsibility For Actions Of Their Employees

Employers may be held vicariously liable for the actions of their employees except where an employee acts outside the course and scope of employment or for personal reasons.

4

FIRING THE EMPLOYEE

Procedures For Terminating the Agreement

There are no specific rules or procedures relating to the termination of an employment agreement unless specified therein or in a collective bargaining agreement.


Instant Dismissal

Employment relationships in Georgia are typically deemed to be “at-will” unless there is a contractual promise by the employer that alters the “at-will” relationship. Employers may terminate an agreement by instant dismissal so long as the dismissal is not discriminatory and does not violate an otherwise enforceable employment agreement.


Employee's Resignation

An employee is free to terminate the employment relationship at any time, with or without notice, so long as such notice does not violate an enforceable employment agreement.


Termination On Notice

There is no minimum period of notice required unless specified in a written employment agreement. Under federal law, workers must be given a 60-day notice before certain plant closings or mass layoffs.


Termination By Reason Of The Employee's Age

No employment terminations may be made on the basis of an employee’s age.


Automatic Termination In Cases Of Force Majeure

An employment agreement may be terminated automatically in cases of force majeure, although such instances are rare.


Collective Dismissals

Federal law requires a 60-day notice prior to plant closings or mass layoffs impacting specific numbers of employees in the event of a collective dismissal. There is no Georgia law requiring advance notice of layoffs; however, the Georgia Department of Labor requires that an employer file a specialized mass layoff report within 24 hours of a mass separation when 25 or more employees separate from an employer on the same day for the same reason. Collective bargaining agreements or the presence of a union may dictate additional requirements.


Termination By Parties’ Agreement

The parties are entirely free to agree to terminate an employment agreement or the employment relationship on any grounds they desire except for discriminatory reasons proscribed by federal or state law. Approval from a court or other regulatory body is not required before an employment termination is effective, but any separation or employment termination agreement between the parties by which the employee releases legal rights will only be binding if the documentation complies with federal and state statutory requirements.


Directors Or Other Senior Officers

In the case of a director, termination of employment does not automatically bring to an end a concurrent directorship. Pursuant to the employer’s articles of incorporation and state law, separate steps are required to bring the directorship to an end.


Special Rules For Categories Of Employee

Upon the termination of employment of any minor between 12 and 16 years of age, Georgia law requires an employer to return the employment certificate to the issuing officer within five days of the date of termination of employment. Other categories of employees (e.g., teachers, attorneys, physicians) are subject to specific state laws in connection with their employment.


Whistleblower Laws

Federal law protects whistleblowing employees under various employment and other related statutes. Georgia law prohibits public employers from retaliating against whistleblowing employees.


Specific Rules For Companies in Financial Difficulties

Federal law requires a 60-day notice prior to plant closings or mass layoffs impacting specific numbers of employees in the event of a such action due to financial difficulties. There is no Georgia law requiring advance notice of layoffs; however, the Georgia Department of Labor requires that an employer file a specialized mass layoff report within 24 hours of a mass separation when 25 or more employees separate from an employer on the same day for the same reason. Collective bargaining agreements or the presence of a union may dictate additional requirements.


Special Rules For Garden Leave

Georgia does not have any specific laws addressing garden leave. Employers must comply with Section 409A of the Internal Revenue Code and the Consolidated Omnibus Budget Reconciliation Act ("COBRA").


Restricting Future Activities

Courts in Georgia review restrictions on an employee’s future business activities to ensure that they are reasonable, supported by consideration, and are drafted narrowly. Each case is considered on its own facts, so what might be appropriate for one employee may be unreasonable for another.


Severance Payments

In Georgia, severance is not required unless an employer has a severance policy or an employee has a written employment agreement providing for severance. There are specific federal and state rules governing the validity of a release provided in exchange for a severance payment.


Special Tax Provisions And Severance Payments

Severance payments are subject to taxation in the normal way.


Allowances Payable To Employees After Termination

Georgia employers are not required to contribute towards any allowances payable to employees after termination, although an unemployment compensation tax may be imposed on an employer if the terminating employee is eligible for unemployment compensation post-termination.


Time Limits For Claims Following Termination

The time limits vary depending on the nature of the claim and whether the claim must be brought before an administrative agency before pursing the claim in federal or state court.

5

GENERAL

Specific Matters Which Are Important Or Unique To This Jurisdiction

There are no other specific matters that are important or unique to Georgia’s jurisdiction.



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Joshua I. Bosin
Holland & Knight LLP
United States


Jamie L. Hill
Holland & Knight LLP
United States


Disclaimer:

© 2021, Holland & Knight LLP. All rights reserved by Holland & Knight LLP as author and the owner of the copyright in this chapter. Holland & Knight LLP has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this Guide.

The information in the How to Hire and Fire Guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: June 2021