Compliance Watch:

What are my rights as a salaried employee in Georgia?

According to the Fair Labor Standards Act (FLSA) and labor laws in Georgia, salaried employees receive a predetermined amount of pay at agreed-upon intervals i.e. biweekly or monthly. Salaried employees may also receive compensation for sick leave as they may meet the eligibility criteria for benefits under the Family and Medical Leave Act (FMLA).

The FLSA categorizes certain employees as exempt, including some salaried individuals in roles like executives, administrators, creative and learned professionals, computer and outside sales, as well as highly paid employees. If you fall into the salaried category but don’t hold one of these positions, you may be classified as non-exempt and, as a result, qualify for overtime pay.

These are some of the general differences between salaried and hourly employees in Georgia, but it’s essential to note that specific employment conditions may vary based on individual circumstances and employer policies. If you’d like to know more about Georgia labor laws,  you can access our guide on salaried employees laws.

Among the key rights that salaried employees in Georgia are that they are entitled to:

• Right-to-Work policy: Georgia is a “Right-to-Work” state, which ensures that workers cannot be compelled to join a union or make union-related payments as a condition for employment. This safeguard specifically applies to workers who are either not hired or terminated solely for their choice or reluctance to join a union.
• Minimum Wage: Employees in Georgia have the right to receive a minimum wage of $7.25 per hour. However, this minimum wage only applies to non-exempt salaried employees.
• Overtime Pay: Eligible salaried employees are entitled to overtime pay at a rate of 1.5 times their regular hourly rate for time worked beyond 40 hours in a workweek.
• Meal and Rest Breaks: Georgia’s labor laws do not require employers to provide meal or rest breaks for adult employees. However, breaks may be granted at the employer’s discretion.
• Family and Medical Leave: Eligible employees have the right to take unpaid leave for qualified medical and family reasons under the Family and Medical Leave Act (FMLA).
• Equal Pay: Salaried employees are entitled to equal pay for work that requires equal effort, skill, and responsibility. Employers in the state cannot base pay differentials on gender, race, color, religion, age, national origin, or ancestry. Rather, differences in compensation can only be based on merit, seniority, quality, and quantity of work.
• Whistleblower Protections: The Georgia Whistleblower Act, O.C.G.A. § 45-1-4 protects salaried employees from retaliation for reporting their employers’ illegal activities or violations of state and federal laws, including felonies, activities that pose hazards to public health, and solicitation of contributions from employees.
• Anti-Discrimination Laws: Discrimination during the hiring process based on race, color, religion, sex, age, disability, or genetic information is illegal.

Yes, some salaried employees in Georgia are eligible for overtime pay. There are certain categories of salaried employees who can be exempt from overtime, yet not all salaried employees are ineligible for overtime. The state adopts federal definitions for the following categories: 

• Professionals: Possessing advanced knowledge and expertise accumulated through years of experience, which they employ to oversee departments within the organization.
• Executives: Possess advanced knowledge and expertise and have authority over hiring and firing decisions.
• Computer Employees: Roles like software engineers, computer programmers, or analysts.
• Administrative Employees: Having roles in accounting, quality control, human resources, personnel management, or labor relations.
• Highly-Compensated Employees: Employees whose roles are office-based or do not require manual work. Earning a total annual compensation of $107,432.

For a comprehensive understanding of this topic, you can access our guide on Georgia overtime laws.

Georgia does not follow a unique set of general wage deduction laws. Instead, the state abides by the guidelines outlined in the Fair Labor Standards Act (FLSA), a federal statute, as set forth by the Department of Labor. 

Wage deduction laws at the state level vary, but Georgia aligns with the minimum standards set by the FLSA. In Georgia, following wage deduction requirements necessitates obtaining written consent from the employee beforehand. Without this consent, deductions that are not mandated by law are considered illegal.

According to the Department of Labor’s Wage and Hour Division, when discussing deductions for uniforms and other facilities under the Fair Labor Standards Act, The FLSA does not mandate uniforms as a requirement. But, if uniforms are required by the nature of the business, and employer, or some other law, the employer should be responsible for covering the cost and maintaining the uniform. 

In instances where the employer requires the employee to handle the cost, it may not reduce the employee’s wage below the minimum wage.

Salaried employees aged 18 and above are not entitled to breaks under federal and Georgia labor laws. An employer may decide to allow employees to take breaks. Employers are guided by the regulations outlined in the federal Fair Labor Standards Act (FLSA), which does not mandate such breaks. 

However, minors are entitled to a 1-hour break specifically designated for meals. Alternatively, they can opt for a 30-minute meal break, accompanied by an additional 30 minutes designated for rest and recreational activities.

The state defers to the FMLA on unpaid family and medical leave for eligible employees. As such, eligible employees are entitled to up to 12 weeks of unpaid leave for the birth of a child and to take care of the child within their first year of birth, a health condition, or to take care of an immediate family member recovering from an illness. 

Eligible employees may also request leave in cases where an immediate family member serving in the military faces required urgent attention during their active duty or experiences a serious injury or illness.

A flexible work arrangement refers to any work schedule that differs from the conventional 40-hour workweek. In Georgia, where labor laws align with the FLSA, which does not specifically address flexible work arrangements, employees are not obligated to adhere strictly to the traditional 9-to-5 work schedule.

Employees and employers in the state have the flexibility to negotiate alternative work schedules. This may involve adopting a compressed work week, allowing employees to work fewer days as long as they meet the 40-hour weekly requirement. Additionally, they can explore flex-time arrangements, enabling employees to set their schedules, provided they fulfill the 40-hour weekly commitment.

Exempt status denotes the condition of not qualifying for overtime pay. In other words, exempt employees are not eligible for overtime compensation when they work overtime. Georgia adheres to the exemption categories outlined by the FLSA, where an employee’s salary level, compensation structure, and job responsibilities determine their exempt or non-exempt classification.

An employee is classified exempt if they meet the following criteria:

• Compensation level: Exempt status applies to salaried employees earning over $684 per week or $35,568 annually. It’s important to note that exempt salaried workers are not entitled to overtime pay, but they may receive bonuses and stipends.
• Type of compensation: Employees should consistently receive the same regular pay within a set pay period.
• Job responsibilities: Employees who are eligible for exemption from overtime pay include; executives or managerial staff, administrators, learned professionals, computer employees, and highly compensated employees.

Please note that this table provides a general overview of the differences between exempt and non-exempt employees in Georgia. Specific details may vary depending on individual employment contracts, industry standards, and changes in labor laws. It’s crucial to stay informed about the latest regulations to ensure compliance.

Determining whether you fall under the category of an Exempt or Non-Exempt Employee in Georgia involves applying three fundamental tests, as established by the FLSA:

• Salary Level Test: Employees earning an annual salary surpassing $35,568 ($684 per week) are eligible to be classified as exempt.
• Salary Basis Test: Employees receiving a guaranteed minimum compensation, regardless of the actual hours worked, may qualify for exempt status.
• Duties Test: In addition to meeting the criteria described in the initial two assessments, an employee must also carry out exempt job responsibilities. These responsibilities can include executive tasks that involve overseeing two or more employees regularly, professional responsibilities that involve engaging in intellectual activities requiring specialized education and the exercise of discretion and judgment, and administrative duties that involve executing supportive operations related to important matters, which require discretion and judgment.

Georgia’s minimum wage is $5.15 per hour, whilst the federal minimum wage is $7,25. In some exceptions, the federal minimum wage is applied. The minimum salary requirements for salaried exempt employees are set by the FLSA. Currently, an exempt employee in Georgia must receive a weekly compensation of $684.

When a salaried employee that qualifies for overtime works more than 40 hours in a single workweek, they’ll receive overtime pay at a rate of one and a half times their usual wage.

According to the Fair Labor Standards Act (FLSA), it is against the law for employers to reduce the salary of a salaried employee due to reduced work hours or availability, as long as the employee is ready and willing to carry out their responsibilities.

Similarly, employers cannot deduct pay for partial-day absences. This means that if an employee takes a half-day off, they should still receive their full day’s pay. However, there are certain allowable deductions that employers can make from the pay of salaried employees. These include unpaid disciplinary suspensions, excessive use of benefits, and personal leave.

Georgia laws offer various protections and benefits which include the following:

• Georgia regulations forbid employers from engaging in discrimination and retaliation against workers in various protected categories. Additionally, employers are mandated to ensure pay equity and safeguard individuals who blow the whistle on misconduct. 
• Georgia laws ensure equal pay for similar roles and protect employees from retaliation when reporting discrimination or labor law violations.
• Employees have rights to various types of leave, including domestic violence leave, jury duty leave, witness leave, and military leave.
• Georgia strictly prohibits smoking in workplaces.
• The Fair Labor Standards Act mandates minimum wage payment for all hours worked and overtime compensation at one and a half times the regular rate for extra hours.

Cases that involve breaches of labor or employment regulations can encompass issues related to discrepancies in wages and working hours, unsafe work conditions, or unfair treatment. In Georgia, it’s typically required to submit complaints regarding violations of labor or employment laws to the local office of a federal agency.

If you believe that you have been discriminated against by a state agency, you can contact the Georgia Commission on Equal Opportunity, or fill in an employment complaint form.

Employees can complete an online complaint form by OSHA to report any hazardous or unhealthy working conditions at the workplace.