HB343: HB343 Georgia Living Wage Act; enact

25 LC 55 0465 House Bill 343 By: Representatives Sanchez of the 42nd, McClain of the 109th, Jackson of the 68th, Berry of the 56th, Jones of the 60th, and others A BILL TO BE ENTITLED AN ACT To amend Titles 34 and 42 of the Official Code of Georgia Annotated, relating to labor and1 industrial relations and penal institutions, respectively, so a s to enact the "Georgia Living2 Wage Act"; to comprehensively revise provisions regarding minimum wage to guarantee a3 $20.00 per hour minimum wage to all Georgians; to provide for an increase in the minimum4 wage; to provide for annual minimum wage increases to match the rising cost of living; to5 revise the eligibility exemptions from the minimum wage; to rep eal provisions relating to6 preemption of local employment benefits mandates; to provide for a private cause of action7 against retaliation by employers; to provide a criminal penalty ; to provide for legislative8 findings and declarations; to provide for construction; to repe al provisions concerning9 exemptions to state minimum wage for persons with disabilities; to provide that no employer10 shall utilize a certificate issued by the United States Departm ent of Labor pursuant to 2911 U.S.C. Section 214(c) to pay individuals with disabilities less than the federal minimum12 wage; to require the payment of minimum wage for inmate labor; to revise authorized13 deductions from inmate wages; to provide for a short title; to provide for related matters; to14 provide an effective date; to repeal conflicting laws; and for other purposes.15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:16 H. B. 343 - 1 - 25 LC 55 0465 SECTION 1.17 This Act shall be known and may be cited as the "Georgia Living Wage Act."18 SECTION 2.19 Title 34 of the Official Code of Georgia Annotated, relating to labor and industrial relations,20 is amended by adding a new Code section to read as follows:21 "34-4-1.1.22 (a) The General Assembly finds and declares that it is good pu blic policy, and in the23 interest of all Georgians, to guarantee a living wage for all w orkers. The General24 Assembly more specifically finds and declares that a living wag e enables Georgians to25 provide for themselves and their families without having to sac rifice basic needs. 26 Furthermore, a living wage will increase consumption and allow Georgians to pay their27 bills on time, which benefits our economy and businesses.28 (b) It is the intent of the General Assembly that this chapter shall be broadly construed to29 give substantial effect to the minimum wage requirements provided herein as a living wage30 for all Georgians and that any exceptions to the minimum wage requirements that may be31 found in this Code shall be interpreted narrowly, so as not to impair the broad construction32 of this chapter."33 SECTION 3.34 Said title is further amended by revising Code Section 34-4-3, relating to amount of35 minimum wage to be paid by employers and the employers and empl oyees covered by36 chapter, as follows:37 "34-4-3.38 (a)(1) Except as otherwise provided in this Code section, every empl oyer, whether a39 person, firm, or corporation, shall pay to all covered employees a minimum wage which40 shall be not less than $5.15 $20.00 per hour for each hour worked in the employment of41 H. B. 343 - 2 - 25 LC 55 0465 such employer. For purposes of determining whether an employer has paid an employee42 the minimum wage, no gratuities, tips, or other forms of voluntary payments paid to such43 employee by third parties shall count or otherwise be credited toward the wages paid to44 such employee by such employer.45 (2)(A) On January 1, 2027, and on January 1 of each successive year thereafter, the46 minimum wage shall be adjusted upwards to reflect the increase in the cost of living,47 if any, as determined by the Georgia Department of Labor pursuant to subparagraph (B)48 of this paragraph.49 (B) On September 30, 2026, and on September 30 of each successive year thereafter,50 the Georgia Department of Labor shall measure the increase in t he cost of living as51 being the percentage increase as of the preceding July over the July level of the52 immediately preceding year according to the Consumer Price Inde x for Urban Wage53 Earners and Clerical Workers or such successor index as published by the United States54 Department of Labor or its successor agency.55 (C) Each adjusted minimum wage rate calculated pursuant to subparagraph (B) of this56 paragraph shall be published on or before November 1 and shall take effect on the57 following January 1.58 (b) This chapter shall not apply with respect to any employer whose sole employee is the59 sole owner or sole proprietor of such employer:60 (1) Any employer that has sales of $40,000.00 per year or less;61 (2) Any employer having five employees or less;62 (3) Any employer of domestic employees;63 (4) Any employer who is a farm owner, sharecropper, or land renter;64 (5) Any employee whose compensation consists wholly or partially of gratuities;65 (6) Any employee who is a high school or college student;66 (7) Any individual who is employed as a newspaper carrier; or67 H. B. 343 - 3 - 25 LC 55 0465 (8) Any individual who is employed by a nonprofit child-caring institution or long-term68 care facility serving children or mentally disabled adults who are enrolled in such69 institution and reside in residential facilities of the institution, if such employee resides70 in such facilities, receives without cost board and lodging fro m such institution, and is71 compensated on a cash basis at an annual rate of not less than $10,000.00.72 (c) This chapter shall not apply to any employer who is subjec t to the minimum wage73 provisions of any act of Congress as to employees covered thereby if such act of Congress74 provides for a minimum wage which is greater than the minimum wage which is provided75 for in this Code section."76 SECTION 4.77 Said title is further amended by repealing in its entirety Code Section 34-4-3.1, relating to78 wages, employment benefits, and scheduling by local government entities.79 SECTION 5.80 Said title is further amended by repealing in its entirety Code Section 34-4-4, relating to81 authority of Commissioner to grant exceptions from operation of chapter, and designating82 said Code section as reserved.83 SECTION 6.84 Said title is further amended by revising Code Section 34-4-6, relating to action to recover85 difference where employee paid less than minimum wage, as follows:86 "34-4-6.87 (a) If any employer pays any employee a lesser amount than the minimum wage provided88 in this chapter, the employee, at any time within three years, may bring a civil action in89 superior court for the recovery of the difference between the amount paid and the minimum90 wage provided in this chapter, plus an additional amount equal to the original claim, which91 H. B. 343 - 4 - 25 LC 55 0465 shall be allowed as liquidated damages, together with costs and such reasonable attorney's92 fees as may be allowed by the court. No contract or agreement between any employer and93 his or her employees nor any acceptance of a lesser wage by any employee shall bar the94 ability of an employee to bring an action under this subsection.95 (b)(1) As used in this subsection, the term 'retaliate' or 'retaliation' means and refers to96 the discharge, suspension, demotion, or any other adverse employment action taken as97 to the terms or conditions of employment.98 (2) No employer shall retaliate against an employee for such e mployee bringing an99 action against such employer for recovery of wages pursuant to subsection (a) of this100 Code section or otherwise seeking recovery of unpaid wages from such employer. Any101 employer who retaliates against an employee in violation of this paragraph shall be guilty102 of a misdemeanor.103 (3) An employee who has been the object of retaliation in viol ation of this paragraph104 may institute a civil action in superior court for relief as set forth in paragraph (4) of this105 subsection within one year after discovering the retaliation or within three years after the106 retaliation, whichever is earlier.107 (4) In any civil action brought pursuant to this subsection, the court may order any or all108 of the following relief:109 (A) An injunction restraining continued violation of paragraph (2) of this subsection;110 (B) Reinstatement of the employee to the same position held before the retaliation or111 to an equivalent position;112 (C) Reinstatement of full fringe benefits and seniority rights;113 (D) Compensation for lost wages, benefits, and other remuneration;114 (E) Any other compensatory damages allowable at law; or115 (F) Punitive damages.116 H. B. 343 - 5 - 25 LC 55 0465 (5) In any civil action brought pursuant to this subsection, the question of damages shall117 be determined by the jury and the court shall award reasonable attorney's fees, court118 costs, and expenses to a prevailing employee."119 SECTION 7.120 Said title is further amended in Code Section 34-6A-4, relating to prohibited discriminatory121 activities, by adding a new subsection to read as follows:122 "(a.1) No employer shall utilize a certificate issued by the Un ited States Department of123 Labor pursuant to 29 U.S.C. Section 214(c) to pay individuals w ith disabilities who are124 employed by such employer less than the minimum wage required to be paid by employers125 to employees under federal law."126 SECTION 8.127 Title 42 of the Official Code of Georgia Annotated, relating to penal institutions, is amended128 in Code Section 42-5-59, relating to employment of inmates in t he local community, by129 revising subsection (b) as follows:130 "(b) An inmate authorized to work at paid employment in the com munity under131 subsection (a) of this Code section shall be paid for any labor provided at the market wage132 comparable to that which would be paid to a person who is not incarcerated, which shall133 in no event be less than the minimum wage required to be paid to employees under Code134 Section 34-4-3, and shall comply with all rules and regulations promulgated by the board135 relative to the handling, disbursement, and holding in trust of all funds earned by the136 inmate while under the jurisdiction of the department. An amou nt determined to be the137 cost of the inmate's keep and confinement shall be deducted fro m the earnings of each138 inmate, and such amount shall be deposited in the treasury of t he department; provided,139 however, that, if the inmate is assigned to a county correction al institution, the deducted140 amount shall be deposited in the treasury of the county to whic h the inmate is assigned.141 H. B. 343 - 6 - 25 LC 55 0465 After the deduction for keep and confinement, the With respect to such wages, the142 commissioner shall:143 (1) Allow the inmate to draw from the balance a reasonable sum to cover his incidental144 expenses;145 (2) Retain to the inmate's credit an amount as is deemed neces sary to accumulate a146 reasonable sum to be paid to him on his release from the penal institution;147 (3) Deduct from the inmate's funds any amounts amount necessary to cover the costs of148 medical or dental attention provided to the inmate, said . Such deductions to shall be149 made in accordance with policies and procedures promulgated by the commissioner;150 provided, however, that no deductions shall be made under this paragraph if such151 deductions would cause the inmate to receive less than the minimum wage required to be152 paid to employees under Code Section 34-4-3; and153 (4) Cause to be paid any additional balance as is needed for the support of the inmate's154 dependents."155 SECTION 9.156 Said title is further amended in Code Section 42-5-60, relating to hiring out of inmates,157 participation of inmates in programs of volunteer service, sale of products produced by158 inmates, disposition of proceeds, and payment to inmates for services, by revising subsection159 (c) as follows:160 "(c) Funds arising from the sale of goods or other products manufactured or produced by161 any state correctional institution operated by the department s hall be deposited with the162 treasury of the department. The funds arising from the sale of goods and products163 produced in a county correctional institution or from the hirin g out of inmates shall be164 placed in the treasury or depository of the county, as the case may be. The department is165 authorized s h a l l, pursuant to rules and regulations adopted by the board, to p a y166 compensation of not more less than $25.00 per month the market wage comparable to that167 H. B. 343 - 7 - 25 LC 55 0465 which would be paid to a person who is not incarcerated, which shall in no event be less168 than the minimum wage required to be paid to employees under Code Section 34-4-3, from169 funds available to the department to each inmate employed in any industry."170 SECTION 10.171 Said title is further amended in Code Section 42-5-120, relating to rules and regulations and172 requirements, by revising subsection (b) as follows:173 "(b) The rules and regulations for the work programs authorized by this article shall174 include but not be limited to rules requiring:175 (1) Assurance that inmates' work is voluntary and that there s hall be no retribution176 against inmates who do not volunteer;177 (2) Payment of inmates at wages at a rate not less than that p aid for work of a similar178 nature in the locality in which the work is to be performed, which shall in no event be less179 than the minimum wage required to be paid to employees under Code Section 34-4-3;180 (3) Provision of federal and state governmental benefits to pa rticipating inmates181 comparable to governmental benefits provided for similarly situ ated private sector182 employees; 183 (4) Selection of participating inmates with careful attention to security issues;184 (5) Appropriate supervision of inmates during travel and emplo yment outside the185 correctional institution;186 (6) Assurance that inmate labor will not result in the displacement of employed workers;187 be applied in skills, crafts, or trades in which there is a surplus of available gainful labor188 in the locality; or impair existing contracts for services;189 (7) Consultations with local private businesses that may be economically impacted;190 (8) Consultations with local labor union organizations and other local employee groups,191 especially those who have an interest in the trade or skill to be performed by the inmates;192 and193 H. B. 343 - 8 - 25 LC 55 0465 (9) Procedures for deductions from inmate wages for federal, s tate, and local taxes;194 reasonable charges for room and board; court-ordered child support and voluntary family195 support; and payments to the Georgia Crime Victims Emergency Fund of not less than196 5 percent nor greater than 20 percent of gross wages, in compliance with Prison Industry197 Enhancement Certification Program requirements."198 SECTION 11.199 This Act shall become effective on January 1, 2026.200 SECTION 12.201 All laws and parts of laws in conflict with this Act are repealed. 202 H. B. 343 - 9 -