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State legislators passed a bill that helps organizations determine whether someone who performs any type of work for them should be classified as an employee.

A Bill That Defines Employment

Georgia’s governor Brian Kemp signed House Bill 389 (HB389) into law in May 2022. The Act updates the Official Code of Georgia and changes the definition of employment to include most services that an individual performs for wages.

HB389 also explains that a worker is an employee unless they are:

• Not prohibited from working at other companies or having other employment opportunities simultaneously.
• Free to accept or reject assignments without consequence.
• Not given a minimum number of hours they must work or a minimum number of sales they must make.
• Able to set their own work schedule.
• Given minimal instructions and no direct oversight or supervision regarding the services to be performed, such as where the services must be done or the date by which they must be completed.
• Given no territorial restrictions.
• Not required to perform, behave, or act in a manner related to the performance of services for wages that is determined by the Commissioner to demonstrate employment.

Some Non-Employment Positions Were Mentioned

HB389 references some specific types of work and provides additional clarification that these positions are not deemed employees. They include:

• Music industry professionals, which means anyone who renders any creative, production, marketing, or distribution services related to a sound recording or musical composition.
• Individuals who work for ride share networks or delivery services.

Penalties For Non-Compliance

Organizations that are found to be out of compliance with this law could face severe fines. The bill notes that:

• Employers with fewer than 100 employees can be penalized up to $2,500 per person.
• Employers with more than 100 employees can be penalized up to $7,500 per person.

A Reason For This Law

One big reason behind this law was to specify the definition of employee to help determine which workers are owed certain benefits. People who are classified as employees in Georgia are able to obtain unemployment and other services. By expanding the definition of employee, HB389 helps ensure many more residents receive these benefits.

Screening Potential Employees

Employers in Georgia may need to reclassify more workers as employees. That could result in them also running more employment background checks. Comprehensive reports help hiring managers determine if a person is qualified and eligible or if they might have a serious criminal history that could cause them to be an undue risk.

Background reports can be run on contractors and volunteers as well, to help organizations make informed decisions, maintain safe workplaces and conduct due diligence.

Need To Screen Candidates?

If your organization needs to screen anyone who might represent your brand, please contact us. Our experienced team can help customize background check packages for any positions, based on relevant laws, best practices and your particular needs. We are available to assist you Monday through Friday from 5am to 6pm PT.