Compilation of Rules and Regulations of the State of Georgia
Department 300 - RULES OF GEORGIA DEPARTMENT OF LABOR
Chapter 300-2 - EMPLOYMENT SECURITY LAW
Subject 300-2-3 - TAX RATES AND COVERED EMPLOYMENT
Rule 300-2-3-.06 - Constructive Knowledge of Work Performed

Universal Citation: GA Rules and Regs r 300-2-3-.06

Current through Rules and Regulations filed through September 23, 2024

(1) General definition. The purpose of this section of the rules is to establish who is liable for the employment of an individual hired to assist in performing the work of an employee. In a situation where an individual is employed to perform or assist in performing the work of an employee, the individual is deemed to be employed by the employer provided the employer had actual or constructive knowledge of the work performed by the individual. This is the case even when the individual who is hired to assist the employee is hired or paid by the employee.

(2) Constructive knowledge. An employer is deemed to have constructive knowledge if the employer should have reasonably known or expected that an employee would engage another individual to assist in performing the work. If an employer has a rule against the employee hiring another worker or has instructed the employee not to hire another worker, the employee who hired the extra worker is the employer unless it is unreasonable to expect one person to complete the work assigned.

(3) Examples of actual or constructive knowledge. The following situations demonstrate when there is actual or constructive knowledge and show the employer's responsibility.

(a) The employer who operates a trucking business, employs A to drive a truck to a certain location, unload the truck and return. A hires B to help unload the truck. The following examples show whether the employer is considered to have actual or constructive knowledge of the work performed by B.
1. If the employer knows B is helping A, the employer has actual knowledge of the work performed by B and therefore, B is considered to be employed by the employer.

2. If the employer does not know about B but knows that the unloading A is engaged to perform requires more than one person, the employer has constructive knowledge of the work performed by B and, therefore, B is considered to be employed by the employer.

3. The employer tells A to do the work himself, however, A still hires B and the employer finds out but takes no action to prevent B from helping A in the future. In this case the employer has actual knowledge of the work performed by B and, therefore, B is considered to be employed by the employer for both the past and future work performed. However, if the employer takes action to prevent A from hiring help in the future, then B would not be considered to be employed by the employer even for the work already performed.

4. The employer tells A that he may do the work himself or hire someone to help him. A hires B but the employer is not told and does not know about B. The employer is considered to have constructive knowledge because he knows A might hire B.

(b) Reporting requirement (constructive knowledge). The employer has a responsibility to report all employment for which he is liable, therefore, the employer in the examples above should require that A report B's employment to him in those situations where the employer had actual or constructive knowledge of B's employment. However, A's failure to report B to the employer does not relieve the employer of the liability for the employment.

O.C.G.A. Secs. 34-8-70, 34-8-190, 34-8-191.

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