On May 2, Georgia Gov. Brian Kemp signed into law HB 389 (Act 809), altering the scope of the employer-employee relationship.
This new law is likely to reclassify many independent contractors as employees and trigger a host of liabilities and obligations for Georgia employers. This measure will become effective on July 1.
Ultimately, lawfully classifying workers and taking account of the liabilities and obligations that attach to those classifications has never been more important.
Additionally, on May 5, Georgia enacted a new, employer-friendly law, SB 331 (Act 823), that restricts cities and counties from enforcing local rules governing work hours, scheduling and work output. This restriction became immediately effective and is reminiscent of the state's 2020 attempts to stop local governments from enforcing local COVID-19 restrictions that conflicted with the state's more relaxed COVID-19 standards.
The resulting turf war between the state and local governments left many employers wondering which rules—state or local—they were required to follow. The same may happen with Georgia's new attempt to preempt local rules on workplace conduct.
Unemployment Benefits
Act 809 amends the provisions of the Georgia Code relating to unemployment benefits. Specifically, it changes the definition of employment to include "services performed by an individual for wages."
Under Georgia common law, the distinction between employees and contractors boils down to one key element: control....
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