Georgia Minimum Wage 2026: What Employers Actually Pay

Georgia’s state minimum wage is $5.15 per hour — one of the lowest in the nation. However, this rate is largely irrelevant in practice because virtually all Georgia employers are covered by the federal Fair Labor Standards Act (FLSA), which sets the minimum wage at $7.25 per hour. The federal rate takes precedence whenever it is higher. There are no local minimum wage ordinances in Georgia, no state overtime mandate beyond FLSA, and the tipped minimum wage is $2.13/hr under federal rules. This guide explains what Georgia employers actually need to pay and why.

Georgia’s State Minimum Wage: $5.15/Hour

Georgia’s own minimum wage law (O.C.G.A. § 34-4-3) sets the state minimum at $5.15 per hour. This rate is well below the federal minimum wage of $7.25/hr, and Georgia has not updated its state minimum wage in decades.

In practical terms, the state minimum wage applies to almost no one because FLSA coverage is so broad. The $5.15 rate would only apply to employers and employees who are both exempt from FLSA — a very narrow category that excludes most businesses operating in Georgia today.

Federal FLSA Preemption: $7.25/Hour Applies

When both federal and state minimum wage laws apply to an employer, the higher rate governs. Since $7.25 is greater than $5.15, the federal rate is what virtually all Georgia employers must pay their non-exempt employees.

The FLSA covers employers with annual gross revenue of $500,000 or more or those engaged in interstate commerce. Given the interconnected nature of modern business — ordering supplies from out of state, accepting credit card payments, using the internet for business purposes — the interstate commerce standard captures nearly every employer.

Additionally, individual employee coverage applies to workers who regularly engage in interstate commerce, regardless of the employer’s total revenue. This means even a very small Georgia business may have individually covered employees.

The bottom line: pay at least $7.25 per hour to all non-exempt employees. The Georgia $5.15 rate is essentially a relic that has no practical impact for the vast majority of employers.

Who Is Covered by FLSA?

FLSA coverage is extremely broad and captures the overwhelming majority of employers and employees in Georgia. There are two types of coverage:

Enterprise coverage applies to businesses that:

• Have annual gross revenue of $500,000 or more, OR
• Are a hospital, school, or government agency (regardless of revenue)

Individual coverage applies to employees who:

• Regularly engage in interstate commerce (sending/receiving mail across state lines, making interstate phone calls, handling goods that moved in interstate commerce)
• Work as domestic service workers (housekeepers, nannies, cooks) earning $2,400+ per year from one employer or working 8+ hours per week

Tipped Employees

Georgia follows federal tipped employee rules under the FLSA. There is no separate Georgia state tipped minimum wage — the federal rules apply directly.

Key points about tipped employees in Georgia:

• Tipped minimum wage: $2.13 per hour (the federal tipped minimum cash wage)
• Tip credit: $5.12 per hour ($7.25 - $2.13) — this is the maximum amount employers can credit toward the minimum wage from an employee’s tips
• Employer’s obligation: The employer must ensure that tips plus the cash wage bring the employee’s total compensation to at least $7.25/hr for every workweek
• Making up the difference: If tips do not bridge the gap to $7.25/hr in any workweek, the employer must pay the difference
• Tip credit notice: Employers must inform tipped employees about the tip credit provisions before taking the credit — this means explaining the cash wage, the tip credit amount, and the employee’s right to retain all tips
• Tip retention: Tipped employees must retain all of their tips, except for valid tip pooling arrangements among tipped employees

A “tipped employee” under FLSA is one who customarily and regularly receives more than $30 per month in tips. Common tipped occupations include servers, bartenders, valets, bellhops, and hairstylists.

No Local Minimum Wage Ordinances

Georgia has state preemption — local cities and counties cannot set their own minimum wage rates that exceed the state or federal rate. This means there is one effective rate statewide: the federal $7.25/hr for FLSA-covered employers.

Unlike states like California (where cities like San Francisco and Los Angeles set rates well above the state minimum) or Washington state (where Seattle has its own minimum wage schedule), Georgia employers do not need to track city-by-city rate variations.

No State Overtime Mandate Beyond FLSA

Georgia does not have its own state overtime law. Federal FLSA overtime rules are the only overtime requirements that apply to Georgia employers.

Under FLSA:

• Overtime threshold: Non-exempt employees must be paid 1.5 times their regular rate of pay for all hours worked over 40 in a workweek
• No daily overtime: Unlike California (which requires overtime after 8 hours in a single day), Georgia and the FLSA only measure overtime on a weekly basis
• No state-specific exemption tests: Georgia follows the federal exemption tests for executive, administrative, and professional employees
• Workweek definition: A workweek is any fixed, regularly recurring 168-hour period (7 consecutive 24-hour periods)

This is a very employer-friendly framework. An employee who works 12 hours on Monday but only 28 hours the rest of the week (total: 40 hours) is not owed any overtime in Georgia, whereas the same employee would be owed 4 hours of overtime in California for that Monday alone.

Youth and Training Wages

Federal law provides several subminimum wage provisions that apply in Georgia:

• Youth minimum wage: Employers may pay employees under the age of 20 a wage of $4.25 per hour during their first 90 consecutive calendar days of employment. After 90 days, the full federal minimum wage of $7.25/hr applies.
• Full-time students: Employers with authorization from the Department of Labor may pay full-time students 85% of the minimum wage (approximately $6.16/hr) under certain programs, with limits on hours worked.
• Student learners: Students enrolled in vocational education programs may receive a subminimum wage with a certificate from the U.S. Department of Labor.

These subminimum wage provisions are narrowly defined and come with specific requirements. Most Georgia employers will simply pay all employees at least $7.25/hr rather than navigate the administrative requirements of these programs.

Exempt Employees

Salaried employees who qualify for the executive, administrative, or professional exemptions under the FLSA are exempt from both minimum wage and overtime requirements. Georgia does not impose separate, stricter exemption standards.

To qualify for exemption, employees must meet both the salary test and the duties test:

• Salary threshold: The federal salary threshold applies (check the current DOL threshold, as it may change). As of the most recent DOL rules, the threshold has been subject to proposed increases.
• Duties test: The employee must primarily perform executive, administrative, or professional duties as defined by DOL regulations.
• No Georgia add-on: Georgia does not impose a separate, higher salary threshold or additional state-level duties test. Federal rules control entirely.

This is another area where Georgia’s deference to federal law simplifies compliance compared to states like California, which has its own (higher) exempt salary threshold and different duties tests.

Employer Best Practices

Given Georgia’s reliance on federal minimum wage, here are practical steps to keep your business compliant:

• Pay at least $7.25/hr to all non-exempt employees — this is your legal floor for virtually all situations
• Maintain accurate time records as required by FLSA: hours worked each day and each workweek, regular rate of pay, total wages per pay period
• Post required workplace posters: Both the federal minimum wage poster (FLSA) and the Georgia minimum wage poster must be displayed where employees can see them
• Track tipped employee earnings to ensure tips plus cash wage meet at least $7.25/hr in every workweek
• Stay informed about potential federal changes: Congress periodically considers increasing the federal minimum wage. If the federal rate increases, Georgia employers must immediately comply with the new rate.
• Use payroll software that tracks minimum wage compliance and alerts you to rate changes
• Review exempt classifications when the federal salary threshold changes to ensure your exempt employees still meet the salary test

Frequently Asked Questions