A new Georgia law eliminates the longstanding practice that allowed certain employers to pay individuals with disabilities less than the minimum wage. As of July 1, 2025, with few exceptions, workers must be paid at least the federal minimum wage regardless of disability status. Georgia joins a wave of states that are phasing out subminimum wage programs.
Historically, Section 14(c) of the federal Fair Labor Standards Act (FLSA) has permitted certain employers — such as sheltered workshops, rehabilitation facilities, and other entities employing people with disabilities — to apply for certificates from the U.S. Department of Labor (DOL). These “14(c) certificates” enabled employers to pay workers a subminimum wage if the employees’ disabilities limited their productivity compared to non-disabled workers. Such disabilities include blindness, mental illness, cerebral palsy, alcoholism, drug addiction, developmental problems, and the effects of an injury.
The rationale of Section 14(c) was to encourage businesses to hire individuals with disabilities who, by conventional standards, might otherwise be considered unemployable. However, critics have argued that this program has led to exploitation and has perpetuated segregation, keeping people with disabilities in poverty and environments with little upward mobility or integration into the workforce.
Georgia’s Dignity in Pay Act directly prohibits the use of these 14(c) wage certificates as a justification for paying disabled workers less than the federal minimum wage. The act covers all employers, including state and local governments, non-profits, and private sector employers. However, the law provides for a gradual phaseout of existing 14(c) certificates until the program completely ends in 2027.
Additionally, the Dignity in Pay Act acknowledges Georgia’s responsibility to support the employment of people with disabilities through competitive, integrated jobs that provide fair pay, respect, and empowerment. The also calls for public and private employers to enhance job training, inclusive hiring practices, and workplace accommodations.
Employers who have relied on 14(c) certificates need to take active steps to comply with the act. This includes reassessing pay scales and reclassifying employees as necessary. With assistance from skilled employment and labor counsel, companies should review their policies and procedures to ensure they support competitive integrated employment: a work setting in which people with disabilities are fully included alongside non-disabled peers.
The Reddy Law Firm, P.C., in Alpharetta advises Georgia employers on compliance with federal and state laws governing the workplace. Call 678-629-3246 or contact us online to schedule a free consultation.
