As a business owner, you’ve probably had to deal with the headache of minimum salary laws. In Georgia, the minimum salary is set at $7.25 per hour. This means that employers must pay workers at least $7.25 per hour for every hour they work, no matter what the job description is or how much experience the employee has.
But there are some exceptions. For instance, employers are allowed to pay employees who have worked for them for at least 90 days on a piece rate basis instead of hourly wages—as long as their average earnings over two weeks equal at least minimum wage for all hours worked in those two weeks.
In addition to this exception, there are also exceptions for tipped employees, such as waiters and bartenders who receive tips from customers, who do not have to be paid the full $7.25 per hour minimum wage if their tips plus other earnings amount to at least $7.25 per hour (again averaged over two weeks). If someone is paid this way and doesn’t earn enough tips or other earnings in any given week to make up the difference between their base wage and minimum wage for that week then their employer must pay them out of pocket until their total earnings reach $7.25 per hour again.
Minimum Salary In Georgia
Georgia has a government-mandated minimum wage, and no worker in Georgia can be paid less then this mandatory minimum rate of pay. Employers in Georgia who fail to pay the Minimum Wage may be subject to punishment by Georgia’s government.
What is the Georgia Minimum Wage?
Georgia’s Minimum Wage is the lowest amount a worker can be legally paid for his work. Most countries have a nation-wide minimum wage that all workers must be paid.
Georgia’s minimum wage is 115 Georgian lari ($48) a month for public employees,and 20 lari ($8) a month for private sector workers. Georgia’s minimum wage was last changed in 1-Jan-2015.
How does Georgia’s minimum wage compare to the minimum wage in other countries?
Georgia’s yearly minimum wage is $279.00 in International Currency. International Currency is a measure of currency based on the value of the United States dollar in 2009. There are 118 countries with a higher Minimum Wage then Georgia, and Georgia is in the bottom percent of all countries based on the yearly minimum wage rate.
Facts and statistics about Georgia
Georgia is a country located in the Middle East region with a population of 4,968,000 and an average life span of 64.5 years.
| Local Name | Sakartvelo |
| Gross National Product | $6,064.00 |
| Government Type | Republic |
| Current Leader | Eduard Ševardnadze |
| Independence Year | 1991 |
| Continent & Region | Asia, Middle East |
| Surface Area | 69,700 square kilometers |
| ISO 3166 Country Code | GE |
With many states implementing multiyear minimum wage campaigns, it can be hard to stay on top of what you’re required to pay in your state.
We’re here to help you learn more about the minimum wage in Georgia, and what you can do as a small-business owner to navigate these changes in 2022.
What is the minimum wage in Georgia for 2022?
While Georgia’s state law sets the minimum wage rate at $5.15 per hour, the Federal Fair Labor Standards Act applies, meaning that most employees must earn a minimum wage of $7.25 per hour. This means that the federal minimum wage supersedes the minimum wage in Georgia.
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Since the Georgia minimum wage falls under the federal minimum wage, the same federal minimum wage exceptions apply. The federal hourly minimum wage exemptions include:
- Tipped employees, for whom the minimum wage is $2.13 per hour (employers may utilize a maximum tip credit of $5.12 per hour)
- Employees under the age of 20, who may be paid a training wage of $4.25 per hour during the first 90 days of employment
- Full-time students, who may be paid no less than 85 percent of the minimum wage in Georgia ($6.16) for up to 20 hours of work per week when school is in session.
Keep in mind that counties, cities, and towns may have their own minimum wage laws. Be sure to check what local wage laws may apply to you.
Are there plans to change the minimum wage in 2022 and beyond?
There is no indication the Georgia legislature is planning to increase the state minimum wage, so it appears that the state’s minimum wage rate will remain at the federal level.
How should small business owners prepare for possible changes to the minimum wage?
Even if changes to the minimum wage in Georgia aren’t on the horizon, it doesn’t mean you shouldn’t prepare in case they ever are. Every business is different, so there isn’t one right way to do this. Here are a few options you may want to consider:
- Audit your expenses: Review your start-up costs and make sure you’re still being smart with your money. It’s never too early to work on managing your cash flow in detail and create a hiring plan you can affordIn some cases, you may find that hiring temporary workers as needed is less expensive than taking on full-time regular staff.
- Make sure you hire and keep the right employees: Replacing an employee can cost a lot. You can decrease the total cost associated with recruiting and training when you hire (and then retain) the right people. Look for candidates with good track records, who come recommended, and who fit in with the company culture. Once the employee is onboarded, make sure you build a relationship and provide paths for employee growth; it makes it more likely that they will stay in their role.
- Update tech: Consider automating certain aspects of the work (like payroll), and find ways to reduce production costs, such as utilizing Square’s payroll features. Lastly and on a slightly-related note, find out how Square is increasingly supporting more small business owners with payroll services in Atlanta.
As always, to make sure your business is prepared and stays in compliance (such as ensuring you have an EIN with applicable wage laws, you should discuss Georgia’s minimum wage laws with your accountant and lawyer.
