Employer of Record in Georgia

An Employer of Record (EOR) in Georgia is a company that legally hires and pays employees on your behalf. Think of it as a third party that handles all the HR tasks for your team members in Georgia. This means they take care of payroll, taxes, benefits, and compliance with local labor laws. You still manage your employees' day-to-day work, but the EOR handles the administrative side. This lets you hire talent in Georgia without setting up a legal entity there. If you are looking for an EOR provider, you can check out Rivermate.

How an Employer of Record (EOR) Works in Georgia

Using an EOR in Georgia simplifies the process of hiring and managing employees. Here is how it typically works:

• You Find the Talent: You recruit and select the best candidate for the job.
• The EOR Hires Your Candidate: The EOR legally hires the employee through their local Georgian entity.
• Onboarding Begins: The EOR manages all the necessary paperwork, contracts, and onboarding tasks. They make sure everything complies with Georgian labor laws.
• HR and Payroll are Handled: The EOR processes payroll, withholds taxes, and manages benefits for your employee.
• You Manage Your Employee: You direct your employee's daily tasks and responsibilities, while the EOR handles the HR administration.

Why use an Employer of Record in Georgia

Using an EOR in Georgia can save you time and money. It allows you to enter the Georgian market quickly without the cost and complexity of establishing a local company. This means you can hire the right people for your team, no matter where they are.

Here are some key benefits:

• Faster Market Entry: Hire employees in Georgia in days, not months.
• Reduced Costs: Avoid the expenses of setting up a legal entity.
• Compliance Assurance: EORs are experts in Georgian labor laws, so you don't have to be.
• Simplified HR: Offload payroll, tax, and benefits administration.
• Access to Top Talent: Hire the best people in Georgia without geographical limitations.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Georgia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Georgia.

Hiring in Georgia is a straightforward process, but you need to understand the local labor laws to stay compliant. The state relies heavily on federal employment regulations, which simplifies things for employers familiar with U.S. labor standards. Whether you're bringing on full-time employees or independent contractors, a clear understanding of your obligations will ensure a smooth and legal hiring process. Georgia's workforce is diverse and growing, offering a strong talent pool for various industries.

Employment contracts & must-have clauses

In Georgia, you are not legally required to have a written employment contract for at-will employees. Oral and implied contracts can be enforceable. However, it is highly recommended to have a written agreement to outline the rights and responsibilities of both you and your employee. This clarity helps prevent future disputes.

For employment contracts that last longer than one year, a written agreement is necessary under the Statute of Frauds.

Here are some essential clauses to include in your employment contracts:

• Job Title and Description: Clearly define the employee's role and responsibilities.
• Compensation: Specify the salary or hourly wage in U.S. dollars and the frequency of payment.
• Benefits: Detail any benefits offered, such as health insurance or retirement plans.
• Work Schedule: Outline the expected working hours and any rest periods.
• Leave Policies: Explain the rules for paid time off, sick leave, and public holidays.
• Probationary Period: If applicable, state the duration of the probationary period, which cannot exceed six months.
• Termination Procedures: Describe the process for termination, including required notice periods.

Probation periods

You can include a probationary period in an employment agreement in Georgia, but it is not mandatory. This period allows both you and the new employee to assess the working relationship.

Key points about probation periods:

• Maximum Duration: A probationary period cannot be longer than six months.
• Written Agreement: The probationary period must be clearly stated in the written employment contract. If it's not in writing, the employee is considered permanent from the start.
• Termination: During the probation period, either you or the employee can terminate the contract with three days' written notice, unless the contract specifies a longer period.

Working hours & overtime

Georgia follows the federal Fair Labor Standards Act (FLSA) for regulations on working hours and overtime.

• Standard Workweek: The standard workweek in Georgia is 40 hours.
• Overtime: For any hours worked over 40 in a week, you must pay non-exempt employees 1.5 times their regular hourly rate.
• No Daily Overtime: Overtime is calculated on a weekly basis, not daily.
• No Maximum Hours: There is no legal limit to the number of overtime hours an employee can work, as long as they are compensated correctly.

Public & regional holidays

Private employers in Georgia are not required to provide paid time off for public holidays. However, many employers choose to offer paid holidays as a benefit. State government offices are closed on official holidays.

Here is a list of the official state holidays in Georgia for 2025:

Hiring contractors in Georgia

Hiring independent contractors in Georgia can be a flexible way to access specialized skills without the commitments of traditional employment. However, it is crucial to classify workers correctly to avoid legal penalties.

An independent contractor is generally a worker who:

• Can work for other companies at the same time.
• Is free to accept or reject assignments without penalty.
• Sets their own work schedule.
• Has no geographical restrictions on their work.

Misclassifying an employee as an independent contractor can lead to significant fines and legal issues, including liability for back taxes, unpaid overtime, and employee benefits.

Using an Employer of Record (EOR) can help mitigate these risks. An EOR takes on the legal responsibility for employment, ensuring that workers are classified correctly and that all local labor laws are followed. This allows you to focus on your business while the EOR handles the complexities of employment compliance.

Navigating compensation and payroll in Georgia requires a clear understanding of state and federal rules. You need to follow these regulations to pay your employees accurately and on time. This guide breaks down the key areas you need to know.

Payroll cycles & wage structure

In Georgia, you can pay your employees on a daily, weekly, bi-weekly, or monthly basis. There is no law that sets a specific pay date, but most businesses pay employees by the end of the month or within the first few days of the next month. You must provide employees with a pay stub that details their wages and any deductions.

Overtime & minimums

Georgia's minimum wage is $5.15 per hour. However, most employers must follow the federal minimum wage of $7.25 per hour. Overtime pay in Georgia follows federal law. You must pay non-exempt employees 1.5 times their regular rate for any hours worked over 40 in a workweek.

Employer taxes and contributions

You are responsible for paying several taxes on behalf of your employees.

Employee taxes and deductions

You must withhold certain taxes from your employees' wages.

In Georgia, benefits and leave are a mix of federal and state laws, plus common practices. While the state doesn't require employers to offer things like paid vacation or sick leave, many companies do to attract and keep good people. This creates a flexible environment where you can design a benefits package that fits your team and your budget.

Statutory leave

Georgia law requires employers to provide certain types of leave. These are the minimums you must offer.

• Family and Medical Leave Act (FMLA): If you have 50 or more employees, you must provide up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons.
• Voting Leave: You must give employees up to two hours to vote on election day if the polls are not open for at least two hours before or after their shift.
• Military Leave: Employees are entitled to up to six months of leave every four years for military training. This is in addition to the federal protections of the Uniformed Services Employment and Reemployment Rights Act (USERRA).
• Jury Duty: You must allow employees to take time off for jury duty without penalty.

Public holidays & regional holidays

Private employers in Georgia do not have to provide paid time off for public holidays. However, many choose to do so. Here are the public holidays for 2025.

Typical supplemental benefits

To stay competitive, many Georgia employers offer benefits beyond what the law requires. Here’s a look at what’s legally required versus what’s commonly offered.

How an EOR can help with setting up benefits

Setting up a competitive benefits package in Georgia can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR helps you:

• Stay compliant. We handle the legal requirements for benefits and leave.
• Offer competitive packages. We give you access to high-quality benefits at a lower cost.
• Save time. We manage benefits administration, so you can focus on your business.
• Scale with ease. We make it simple to offer great benefits to a growing team.

We take the guesswork out of benefits, making it easy for you to hire and support your team in Georgia.

When an employee leaves your company in Georgia, the process is called termination or offboarding. Georgia is an "at-will" employment state. This means you can end the employment relationship at any time, for any reason, as long as it is not an illegal one, like discrimination. Similarly, an employee can leave at any time without giving a reason. A smooth offboarding process is important. It helps you stay compliant with the law and ensures a respectful exit for your former employee.

Notice periods

In Georgia, you generally do not have to provide notice before ending employment. Since it is an "at-will" state, you can terminate an employee effective immediately. The same applies to employees. They can resign without giving you any advance notice.

However, there are a few exceptions:

• Employment Contracts: If you have an employment contract with an employee, you must follow the terms of that agreement. The contract might require a specific notice period.
• Mass Layoffs: Federal law has a rule called the Worker Adjustment and Retraining Notification (WARN) Act. If you have 100 or more employees, you must give at least 60 days' notice before a mass layoff or plant closing.

Severance pay

Georgia law does not require you to offer severance pay. Whether you provide severance is up to you and your company's policies.

Many companies choose to offer severance for a few reasons:

• It can help the employee financially while they look for a new job.
• It can create goodwill and protect your company's reputation.
• You can ask the employee to sign a separation agreement in exchange for the severance pay. This agreement typically releases your company from future legal claims.

The amount of severance pay can vary. Some companies offer a standard amount, like one or two weeks of pay. Others might offer more based on the employee's position and how long they worked for you.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure everything is handled correctly and in compliance with Georgia's laws.

Here is what our process typically includes:

Using Rivermate simplifies the offboarding process. We handle the details so you can focus on your business and your remaining team members.

Georgia makes it straightforward for foreigners to live and work in the country. For more than 90 nationalities, you can enter without a visa and stay for up to a full year. This includes citizens of the US, UK, EU, and Canada. If you plan to employ someone for the long term, they won't get a separate document called a "work permit." Instead, the right to work is part of their residence permit. The process involves getting a long-term visa before they arrive and then applying for the residence permit once in Georgia.

Employment visas & sponsorship realities

Georgia does not have a traditional employer sponsorship system for work visas. The key to getting a residence permit for work is having a legal employment contract with a company in Georgia.

This is where an Employer of Record (EOR) helps.

An EOR acts as the legal employer in Georgia on your behalf. Here is how it works:

• The EOR signs a compliant employment contract with your employee.
• This contract serves as the legal basis for the employee's residence permit application.
• The EOR manages all the necessary paperwork for residency, tax, and social security registration.

So, while an EOR doesn't "sponsor" a visa in the way some countries require, it provides the essential legal foundation that enables your employee to live and work in Georgia. Your employee can even arrive in Georgia under the visa-free policy and then have the EOR help them secure their residence permit from within the country.

Business travel compliance

For short-term business trips, compliance is simple for most people.

If your employee is a citizen of one of the 90+ countries with a visa-free agreement, they can enter Georgia with just their passport and stay for up to one year. This allows for activities like attending meetings, conferences, or negotiating contracts without needing any special visa. For those not eligible for visa-free entry, a standard short-term business visa is required.