Georgia Overtime Laws: Complete Guide for Employers [Updated for 2025]

Overtime laws can feel like a maze for employers, especially when federal and state rules overlap. In Georgia, knowing how to navigate these regulations is key for accurate payroll and compliance. Employers need a clear understanding of how state-specific wage laws and federal standards work together.

Georgia follows federal guidelines for overtime pay, but there are important distinctions to consider. Staying informed about wage thresholds and workweek limits helps protect businesses from penalties and ensures employees are paid correctly. Missteps in compliance can lead to costly consequences.

This guide focuses on overtime laws in Georgia, breaking down minimum wage requirements, federal Fair Labor Standards Act (FLSA) applications, and the 40-hour workweek rule for non-exempt employees.

Georgia Overtime Laws Overview

The minimum wage in Georgia is $5.15 per hour, which is lower than the federal rate. Employers covered by the FLSA must pay employees at least the federal minimum wage of $7.25 per hour. For most workers in Georgia, this federal standard applies, unless specific exemptions exist.

The FLSA lays out the rules for overtime in Georgia, requiring non-exempt employees to receive overtime pay for any hours worked beyond 40 in a single workweek. The overtime rate is set at one and a half times the employee's regular hourly rate. Federal law also defines non-exempt employees, helping employers determine who qualifies for overtime pay.

The 40-hour workweek serves as the benchmark for overtime eligibility. Any additional hours worked over this threshold trigger overtime pay requirements, regardless of when the hours are worked. Employers must track hours accurately to remain compliant and avoid penalties.

Understanding Non-Exempt and Exempt Classifications

Knowing how to classify employees as non-exempt or exempt is a key part of complying with overtime laws in Georgia. The distinction directly impacts payroll practices and determines whether employees qualify for overtime pay. Missteps in classification can lead to financial penalties and back pay obligations, so accuracy matters.

Non-Exempt Employees

Non-exempt employees are eligible for overtime pay when they work more than 40 hours in a workweek. This classification applies to most hourly workers and some salaried positions, depending on their job duties. Employers must assess the actual tasks performed by employees to ensure proper classification.

Common examples of non-exempt roles include administrative support, customer service, and manual labor. These employees rely on accurate time tracking to ensure compliance with overtime pay requirements.

Exempt Employees

Exempt employees are not entitled to overtime pay, but they must meet specific criteria to qualify for exemption. Both the salary threshold and job duties are considered when determining exempt status.

The FLSA recognizes five categories of exempt employees:

• Executive: Managers or supervisors who oversee at least two full-time employees and have decision-making authority on hiring or firing.

• Administrative: Employees performing office or non-manual work that involves independent judgment on business operations or management matters.

• Professional: Roles requiring advanced expertise in a specialized field, such as medicine, law, or engineering.

• Computer: Employees working in systems analysis, programming, or software development with specialized skills in technology.

• Outside Sales: Workers primarily engaged in sales activities outside the employer's place of business.

Salary Thresholds and Job Duty Tests

To qualify as exempt, employees must earn at least $684 per week, which equals $35,568 annually. Highly compensated employees must meet a higher threshold of $107,432 per year. However, meeting the salary requirement alone isn't enough to determine exemption.

Job duty tests ensure that employees perform responsibilities aligned with exempt classifications. For example, executive employees must actively manage and supervise others, while administrative employees must make decisions that significantly impact the company's operations. Employers cannot rely solely on job titles or descriptions when evaluating exemption status.

Employers should consistently review job duties and salary levels to maintain compliance. Misclassification can lead to costly consequences, including back pay for unpaid overtime and potential legal challenges.Overtime pay calculations can feel overwhelming when you're managing employees with different pay structures. Knowing the specifics for hourly, salaried, tipped, commissioned, or piecework employees helps ensure compliance and prevents payroll errors. Each employee type has unique rules, and precision is key.

Hourly Employees

Hourly employees follow straightforward rules for overtime pay. Employers must pay time-and-a-half for every hour worked over 40 in a workweek.

• Overtime rate formula: Multiply the employee's regular hourly wage by 1.5 to calculate their overtime pay. For example, an employee earning $18 per hour would receive $27 per hour for overtime.

• Accurate time tracking: Record all hours worked, including unexpected overtime, early clock-ins, or late clock-outs. This prevents underpayments and keeps payroll records precise.

Consistency in timekeeping matters. Even small discrepancies can lead to compliance issues or disputes over pay.

Salaried Employees

Not all salaried employees are exempt from overtime pay. Salaried non-exempt employees must receive overtime if they earn below the FLSA salary threshold or if their job duties don't meet exemption criteria.

• Salary threshold: Employees earning less than $684 per week or $35,568 annually qualify for overtime pay.

• Overtime pay calculation: Divide the weekly salary by 40 to find the hourly rate. Multiply that rate by 1.5 for overtime. A salaried employee earning $700 per week would have a regular rate of $17.50 per hour and receive $26.25 per hour for overtime.

Tracking hours for salaried non-exempt employees is just as important as for hourly employees to ensure overtime pay is accurate.

Tipped Employees

Overtime pay for tipped employees requires extra care. Employers must ensure cash wages plus tips meet the minimum wage for all hours worked, including overtime.

• Minimum wage compliance: The combined total of tips and cash wages must equal at least $7.25 per hour. If tips fall short, employers must make up the difference.

• Overtime pay formula: Start with the cash wage paid by the employer, then calculate overtime at 1.5 times that rate. For example, if the cash wage is $2.13 per hour, the overtime rate before tips is $3.19 per hour. Tips must be added to meet or exceed the minimum wage.

Double-checking both cash wages and tips ensures compliance and prevents underpayment.

Commissioned and Piecework Employees

Employees paid on commission or by the piece require careful overtime calculations. Employers must determine the regular hourly rate from total weekly earnings.

• Regular rate formula: Divide total weekly earnings by the number of hours worked. For example, if a commissioned employee earns $1,000 in a 50-hour week, their regular rate is $20 per hour.

• Overtime pay formula: Multiply the regular rate by 1.5 for each hour worked over 40. In the example above, the employee's overtime rate would be $30 per hour. For 10 overtime hours, they'd earn an additional $300 in overtime pay.

Documenting total earnings and hours worked is essential for accuracy, especially for employees with variable pay structures.

Compensatory Time in Georgia

Compensatory time, or comp time, allows employees to receive paid time off instead of overtime pay. However, its use is strictly regulated. Public-sector employers in Georgia have the option to offer comp time under specific conditions, while private-sector employers must adhere to overtime pay requirements. Missteps can lead to legal repercussions, so clarity is key.

Public vs. Private Sector Usage

Public-sector employers can legally offer comp time to non-exempt employees as an alternative to overtime pay. Federal law requires a prior agreement between the employer and employee, ensuring both parties understand the arrangement. For every hour of overtime worked, the employee accrues 1.5 hours of comp time, mirroring the overtime pay structure.

Private-sector employers, on the other hand, cannot substitute comp time for overtime pay. For-profit businesses must compensate non-exempt employees with wages for all overtime hours worked. Offering comp time in this setting violates the Fair Labor Standards Act (FLSA) and can result in penalties.

Limitations and Compliance Pitfalls

Public-sector employers must follow clear rules when managing comp time.

• Accrual caps: Non-exempt employees may accrue up to 240 hours of comp time. Public safety, emergency response, and seasonal employees have a higher cap of 480 hours.

• Reasonable use: Employees must be permitted to use accrued comp time within a reasonable period, as long as it does not disrupt operations.

• Payout requirements: Any unused comp time must be paid out upon separation, using the higher of the employee's regular rate or the average rate over the last three years.

Ignoring these limits can result in compliance issues, including back pay and fines. Employers must communicate these rules clearly to avoid misunderstandings.

Recordkeeping Best Practices for Comp Time

Accurate records are non-negotiable when managing comp time. Public-sector employers must document every aspect to ensure compliance with the FLSA.

• Written agreements: Retain signed and dated agreements where employees choose comp time over overtime pay.

• Detailed logs: Track overtime hours worked, comp time accrued, and dates of use. Include clear records of remaining balances.

• Regular audits: Periodically review records for accuracy. Cross-check comp time balances with payroll systems to identify and resolve discrepancies.

Thorough recordkeeping protects both employers and employees. Consistent processes ensure compliance and prevent disputes over accrued or unused comp time.

Daily vs. Weekly Overtime Requirements

Georgia calculates overtime based on the total hours worked in a 40-hour workweek, not on daily totals. The length of a single shift does not trigger overtime unless it causes the total hours for the week to exceed 40. This approach aligns with federal FLSA standards.

What are the rules for overtime pay in Georgia?

Employers must pay non-exempt employees time-and-a-half for all hours worked beyond 40 in a workweek. The calculation is based solely on weekly totals. For instance:

• An employee works 9 hours on Monday, 8 hours each on Tuesday through Friday, and takes the weekend off. Total hours: 41. One hour qualifies for overtime pay.

• Another employee works 12 hours on Monday but only 6 hours each on Tuesday through Friday. Total hours: 36. No overtime applies.

Daily totals have no impact unless they contribute to a workweek exceeding 40 hours.

How does scheduling impact payroll calculations?

Scheduling influences when overtime applies, especially for employees with variable or irregular hours. Employers must monitor total hours each week and adjust schedules to avoid unintentional overtime.

For example:

• Four-day workweeks: An employee on a 10-hour shift schedule from Monday to Thursday works exactly 40 hours. No overtime applies.

• Weekend shifts: A full-time employee works 8 hours per weekday but picks up an additional 5 hours on Saturday. Total hours: 45. The 5 Saturday hours qualify for overtime pay.

• Split shifts: An employee clocks in for 4 hours in the morning and 4 hours in the evening, Monday through Sunday. Total hours: 56. Overtime applies to 16 of those hours.

Tracking hours accurately ensures employees are paid correctly and prevents payroll errors. Without proper documentation, payroll discrepancies or compliance issues can arise.

Recordkeeping and Compliance

Managing overtime laws in Georgia means more than just paying employees correctly—it requires precise documentation and proper classification. Accurate records and clear policies protect employers from audits, penalties, and disputes. Knowing what to track and how to stay organized is a key step toward compliance.

Required Documents to Maintain

Employers must keep specific records to comply with overtime laws in Georgia. Each document provides proof of adherence to wage and hour regulations. Skimping on recordkeeping can lead to compliance issues and costly audits.

• Employee Timesheets: Record exact hours worked, including start times, end times, and breaks. Make sure every hour over 40 is documented for non-exempt employees. Missing or inconsistent timesheets can raise red flags.

• Detailed Wage Statements: Wage statements should clearly outline regular pay, overtime pay, and deductions. Keep copies for at least three years to meet federal requirements.

• Pay Period Records: Track the start and end dates of each pay period, as well as payment dates. Include any adjustments, such as corrections or retroactive pay.

• Written Agreements (if applicable): For public-sector employers offering comp time, written agreements confirming the employee's consent must be securely stored.

Organized, accessible records ensure compliance and simplify responses to audits or employee inquiries. Employers using electronic systems should verify they meet federal standards for accuracy and retention.

Importance of Accurate Classification

Incorrectly classifying employees as exempt or non-exempt creates significant compliance risks. Employers must determine classification based on job duties and salary thresholds, not just job titles or descriptions.

• Review Job Roles: Reevaluate classifications whenever job responsibilities shift or salaries are adjusted. Ensure employees meet both the salary test and the duties test for exempt status.

• Educate Managers: Train managers to identify non-exempt tasks. For example, roles involving manual labor or customer service often fall under non-exempt status.

• Align Job Descriptions: Compare written job descriptions to actual tasks performed. Misalignment can lead to misclassification and potential back pay penalties.

Misclassification can result in unpaid overtime, fines, and reputational damage. Regular audits of employee classifications reduce these risks and keep payroll practices compliant.

Frequently Asked Questions

Overtime laws in Georgia can lead to confusion for employers managing payroll and compliance. Below are clear, straightforward answers to common questions about overtime rules, work hours, and employee rights.

Does overtime in Georgia start after 8 hours or 40 hours?

Overtime pay in Georgia begins after an employee works more than 40 hours in a single workweek. The state follows the federal standard set by the FLSA, which does not require overtime pay for hours worked beyond 8 in a day.

For example:

• An employee works 10 hours on Monday, 8 hours each on Tuesday through Friday, and takes the weekend off. Total hours: 42. The 2 hours beyond 40 qualify for overtime pay.

• Another employee works 12 hours on Monday but only 6 hours each on Tuesday through Friday. Total hours: 36. No overtime applies, regardless of the long Monday shift.

Employers need to monitor weekly totals rather than daily hours to determine when overtime pay applies.

How many hours can employees legally work in a day in Georgia?

There is no legal cap on the number of hours an employee can work in a day under Georgia or federal law. Employees aged 16 or older may work as many hours as scheduled, provided total weekly hours do not violate overtime rules.

However, long shifts can raise concerns about safety, productivity, and employee well-being. Employers should implement clear policies regarding breaks and rest periods, especially in industries with physically demanding roles. Proactive scheduling can help manage workloads and reduce burnout without exceeding legal limits.

What if employees refuse overtime?

Employers can require overtime, and employees must comply unless protected by a specific contract or collective bargaining agreement. Refusing to work scheduled overtime can justify disciplinary action, as long as policies are applied consistently.

To address refusals:

• Review agreements: Check employment contracts or handbooks for overtime requirements.

• Provide notice: Inform employees of overtime needs as early as possible to minimize conflicts.

• Document actions: Maintain a record of all communications and disciplinary measures to avoid misunderstandings.

While employees are obligated to follow overtime schedules, flexibility can help resolve disputes. Considering personal circumstances and communicating clearly often leads to better outcomes.

Navigating overtime laws in Georgia requires attention to detail and a commitment to compliance. By understanding the nuances of employee classifications, maintaining accurate records, and staying informed about regulatory changes, you can protect your business from costly penalties and ensure fair compensation for your employees. If you're looking for a comprehensive solution to streamline your HR processes and maintain compliance with ease, book a demo with GoCo today and discover how we can help you navigate the complexities of HR management.