| Update Applicable to: | Effective Date |
| All Employers in Georgia | July 1, 2025 |
What happened?
On April 7, 2025, the Governor of Georgia signed the Dignity and Pay Act (Senate Bill 55) into law. This legislation phases out the use of subminimum wages for workers with disabilities, ensuring fairer pay and greater inclusion in the workforce.
Overview:
- Ban on Subminimum Wages: Employers in Georgia will no longer be allowed to pay workers with disabilities less than the federal minimum wage using special certificates issued under Section 14(c) of the Fair Labor Standards Act.
- Transition Period for Existing Employers: Employers with a valid certificate issued on or before July 1, 2025, may continue using it temporarily, but must:
- Pay at least 50% of the federal minimum wage by July 1, 2026
- Pay the full federal minimum wage by July 1, 2027
- No New Certificates Allowed: Employers without a valid certificate by July 1, 2025, will not be permitted to pay less than the federal minimum wage to workers with disabilities.
Source References
Need help understanding how changes to employment laws will affect your business?
Learn more about how Vensure's Georgia PEO services can help you navigate complex employment laws and keep your business compliant.
This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.
