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Business owners, organizations and corporations must stay updated and compliant with minimum wages in Georgia to avoid any legal issues. Staying aware and updated helps to plan better for the future of business. Minimum wages in Georgia are closely linked to the cost of living and inflation rate in Georgia so everyone can afford a standard of living. These minimum wages increase annually based on the inflation rate in the economy and measured by the Consumer Price Index.
The minimum wage for all employees paid on an hourly basis is $7.25Â per hour (applicable from January 1, 2024) irrespective of company size. The minimum wage is the same as the federal minimum wage which is $7.25 per hour. Georgia is not planning to change its minimum wage rate. Last year the minimum wage in Georgia was also the same.
The minimum wage rate applies to all employees with some exceptions of tipped employees, student employees and other exempted employees. The employers in Georgia cannot pay less than the minimum wage unless your occupation does not fall under the minimum wage.Â
Overtime pay is applicable in Georgia if an employee works for more than 40 hours per week or 8 hours per day. The overtime rate must be at least 1.5 times regular hourly wages.Â
There are certain exemptions for Georgia minimum wages and you are paid minimum wages if you fall in the category:
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1. Minimum wage for employees under 20 years of age- Those employees who are under the age of 20 are entitled to a training wage of $4.25 per hour for the first 90 employment days.
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2. Minimum wage for students in Georgia- Those students who have completed their high school and are serving as full-time employees or part-time college students in Georgia are paid 85% of the minimum wage (which is as little as $6.16 per hour) for up to 20 hours of work per week.Â
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3. Tipped minimum wage in Georgia- Those employees who earn tips every month are paid less than the minimum wage of Georgia (but a minimum amount of $7.25 per hour along with the hourly tip).Â
In Georgia, the minimum wage rate has not been revised since 2009. The last change was done when the minimum wage raised $0.70 from $6.55 to $7.25. Big businesses and corporations can tackle the rise in minimum wages but it becomes difficult for small business owners to tackle the rising minimum wage of employees.
To tackle the rising wages here are some ways they can consider:
1. Right hiring- It is necessary to ensure that small businesses hire make the right hiring decisions. Replacing an employee costs a lot for the employer. Before hiring make sure that the employee is a good fit for your business. After completing the onboarding process it is necessary to maintain healthy relationships. Moreover, it is necessary to provide a clear path of growth and success to the employees so that they are likely to stay long with your business.
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2. Increase the price of product/service- One of the other ways to tackle the rising minimum wage is to increase the price of the product/service in which the business deals. But it’s necessary to stay with the market trends and the rise should be optimal.
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3. Recheck your expenses- Before making hiring decisions it’s necessary to recheck the financial statements of the business. Sometimes hiring temporary or contractual employees proves to be less costly as compared to hiring full-time employees.
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Using the above methods small businesses can tackle the increase in minimum wages.Â
The minimum wage in Georgia in 2024 is $7.25 per hour which is same as the federal wages.
Full-time high school students and part-time college students are paid a minimum wage of $6.16 per hour in Georgia.
The minimum wage for tipped employees in Georgia is $2.13 per hour.