Georgia Governor Brian Kemp has signed into law two measures addressing the employment relationship. The first, Act 809 (H.B. 389), alters the definition of employment for purposes of unemployment benefits. The second, Act 823 (S.B. 331), precludes local governments from regulating the scheduling or work hours of a private business’s employees.
Act 809 seeks to expand the types of workers who may be able to claim unemployment benefits. It also ensures, however, that the nature of an individual’s work will ultimately determine the existence of an employer-employee relationship. Act 809 will become effective on July 1, 2022.
In Georgia, only individuals who are deemed “employees” may be eligible for unemployment benefits. Independent contractors are not entitled to such benefits. Act 809 changes the definition of employment to include any services performed by an individual for wages. Under this definition, the majority of workers would qualify as “employees,” unless the Georgia Department of Labor makes a contrary determination. Based on Act 809’s expanded definition of employment, more workers may be able to obtain unemployment benefits from a business.
Under the new law, an individual will not qualify as an “employee” only if it is shown that the individual is free from control or direction over the performance of services for a company and is customarily engaged in an independent trade, occupation,...
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