Georgia to Phase Out Subminimum Wage for Employees with Disabilities Starting July 2025

Beginning July 1, 2025, Georgia will initiate a phased approach to eliminate the use of the subminimum wage for employees with disabilities. This marks a major shift in employment practices and underscores the state’s move toward more inclusive and equitable compensation standards.

What Is the Subminimum Wage?

Under Section 14(c) of the Fair Labor Standards Act, certain employers have been permitted to pay individuals with disabilities less than the federal minimum wage if they obtain a special certificate from the U.S. Department of Labor (DOL). While originally intended to expand job opportunities, the practice has come under increasing scrutiny for perpetuating wage inequality.

What’s Changing in Georgia?

As of July 1, 2025, employers in Georgia will no longer be able to start or renew the practice of paying subminimum wages unless they already have a valid DOL certificate issued on or before that date. Even with a valid certificate, employers will be required to phase in higher wages on the following timeline:

• By July 1, 2026: Employees with disabilities must be paid at least 50% of the federal minimum wage.

• By July 1, 2027: These employees must be paid at least the full federal minimum wage.

Employers who do not have a valid DOL certificate by July 1, 2025 will not be allowed to pay subminimum wages at all and must pay at least the federal minimum wage moving forward.

What Employers Should Do Now

If your organization currently pays subminimum wages under a valid DOL certificate, it's essential to begin preparing for this transition. Review your certificate status, assess your wage structure, and plan ahead for annual increases.

Employers who have not secured a certificate by the July 1, 2025, deadline will need to make immediate wage adjustments to comply with federal and state standards.

How Elevated HR Consulting Can Help

Navigating changes to wage laws—especially those affecting compliance with federal labor standards—can be complex. At Elevated HR Consulting, we specialize in helping small businesses prepare for regulatory changes, implement updated pay practices, and stay in compliance with employment laws.

If you're unsure how this impacts your business or need guidance on next steps, we’re here to help.

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