GEORGIA: An Introduction to Labor & Employment

An Evolving Georgia Ready for an Economic Rebound

The COVID-19 pandemic significantly impacted Georgia’s 2020 economy, particularly its transportation, tourism, hospitality and entertainment industries.

Fortunately, Georgia’s economy has withstood the pandemic-driven recession better than the US economy overall. Georgia is well-positioned to rebound more quickly, no doubt in part due to Georgia’s continued push to promote and incentivize business in the state. In November 2020, Georgia’s climate for business ranked best in the US and, despite COVID-19, four new Fortune 1000 companies moved their headquarters to Georgia in 2020.

In 2021, Georgia’s businesses and elected officials will focus on continued economic recovery, which will primarily be driven by addressing the public health issues associated with the pandemic. It is not yet clear if this will result in additional legislative action impacting Georgia employers.

Continued and Future Growth in Tech & Global Health Sectors

One of the most significant business trends in Georgia revolves around the technology industry. Georgia’s technology sector has been growing over the past decade, and this trend is expected to continue. Ten years ago, only nine of the fastest growing public and private technology companies were in Atlanta. As of this publication date, there are two dozen, and Atlanta's total technology jobs have grown by 20 percentage points above the national average since 2010. Driving this growth is Atlanta Tech Village, one of America’s top five largest tech hubs.

Building on the success of Atlanta Tech Village and leveraging the headquarter presence of the Centers for Disease Control (CDC), CARE International, the Carter Center, the Task Force for Global Health, MAP International and American Cancer Society, an initiative is underway to create a new Global Healthcare Innovation District in Atlanta. It is far too early to tell whether this initiative will succeed on the scale of Atlanta Tech Village. Still, if it does, Georgia will solidify itself as a focal point for global healthcare-related employment and initiatives.

Population and Political Changes 

Another of Georgia’s distinguishing trends over the past decade is the continuing influx of people moving to the state from other US states and abroad. According to the most recent US Census Bureau report, only four states welcomed more newcomers than Georgia during this same period, with Atlanta the fourth fastest-growing metro area in the nation. Young professionals help drive this growth, with the 20-29-year-old population segment growing over four times more than the national average.

The influx of people is doing more than help the technology sector. It is also affecting politics, as research has shown that people moving into the state from elsewhere are more likely to be Democratic. The 2020 presidential election was the first time since 1992 that the majority of Georgia voters cast their ballot for a Democratic president. But Republicans still retain control of both chambers in Georgia, which will likely result in a continuation of Georgia’s pro-employer legislative philosophy.

Legal Developments 

Protections for Gay & Transgender Employees 

In 2020, the US Supreme Court ruled that an employer that fires an employee for merely being gay or transgender violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination “because of sex.” The ruling resulted from three consolidated cases. One case, Bostock v. Clayton County, Georgia, and Altitude Express, originated in Georgia and involved workplace protections based on sexual orientation. The other case, R.G. & G.R. Harris Funeral Homes v. Equal Employment Opportunity Commission, involved employment rights based on gender identity. The US Supreme Court held that “an employer who fires an individual for being homosexual or transgender fires that person for traits or actions it would not have questioned in members of different sex. Sex plays a necessary and undisguisable role in the decision, exactly what Title VII forbids.”

Criminal Background Checks 

Forty percent of adults living in Georgia have been in prison, jail or on probation or parole at some point, which is the highest rate in the country. Until January 1, 2021, almost all convictions stayed on individuals’ records forever, regardless of sentence completion or rehabilitation. In 2020, however, Georgia Senate enacted SB 288, which allows individuals to petition to restrict or seal certain misdemeanor convictions, so the convictions are not revealed through a typical employment background check. Certain offenses will be excluded from restriction and sealing, including sex crimes, crimes against children, family violence, and DUI. Additionally, to encourage employers to engage in so-called second-chance hiring, the bill provides liability protection for employers.

Wage & Hour Garnishments 

Another law affecting employers effective January 2021 is SB 443, which revises garnishment provisions. The law’s objectives are to provide uniform procedures for garnishment and limit the maximum part of disposable earnings subject to garnishment regarding certain educational or student loans to 15 percent of the individual’s weekly disposable earnings.

Anticipated Legislative Actions 

Election Reform 

Following Georgia’s pivotal role during the 2020 presidential election, Georgia’s Republican-controlled legislature has promised to reform the Georgia election process. Congress is focused on placing restrictions on absentee voting, including eliminating at-will absentee voting, a requirement for photo identification for absentee voting, and eliminating ballot drop boxes.

Employer Coronavirus Liability 

In response to employer and business concerns regarding COVID-19-related liability, on August 5, 2020, Georgia’s governor signed the Georgia COVID-19 Pandemic Business Safety Act. This Act creates a general shield against liability claims brought by customers, employees or members of the public who contract or allege exposure to COVID-19. This shield is available under the condition that the businesses did not act with gross negligence, willful and wanton misconduct, or reckless or intentional disregard about someone being exposed to and contracting COVID-19. Also, businesses posting specified warnings at a point of entry to their premises are further protected by a rebuttable presumption that the person trying to sue assumed the risk of being exposed to or contracting COVID-19. Lawmakers are expected to renew this law, which expires in July 2021.

As vaccines become more widely available and other efforts to tamp down the COVID-19 pandemic achieve more success, Georgia’s favorable business climate positions it to emerge with its strong economy intact.