Bill filed to make pay equitable for Georgia workers with disabilities, ‘phase out subminimum wages'
Georgia lawmakers filed a bill in January to make it illegal to pay persons with disabilities less than their non-disabled colleagues.
According to Senate Bill 55, the Dignity and Pay Act, businesses would be required to phase out payment of subminimum wages to those with disabilities.
The bill would also repeal provisions in the Georgia statutes that create exemptions for the state's minimum wages for those with disabilities and would require that no employer in Georgia uses a certificate from the U.S. Department of Labor to pay those with disabilities less than the federal minimum wage.
According to the USDOL, the number of certificate holders has declined over recent years, and the Department expects that trend to continue. In 2001, the Government Accountability Office (GAO) estimated that approximately 424,000 workers with disabilities were paid subminimum wages. As of May 1, 2024, that number had dropped to approximately 40,579 workers with disabilities being paid subminimum wages to employers with issued certificates—approximately a 90% decline. (The 2024 number does not include workers who are paid subminimum wages under pending section 14(c) certificates.)'
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In Georgia, USDOL data shows there are eight companies with the 14(c) certificates, and a total of 245 workers receiving subminimum wages as of Jan. 1.
The legislative text for SB 55 says it would prohibit discriminatory activities as far as wages paid to disabled individuals, ensuring they receive the federal minimum wage of $7.25 per hour.
Additionally, any employer issued a 14(c) certificate before July 1 of this year would be able to use the certificate's provisions for subminimum wage until, though there will be a time limit.
According to the bill, companies:
May pay individuals with disabilities employed by such employer less than the minimum wage required to be paid by employers to employees under federal law; provided, however, that:
During the period of July 1, 2026, through June 30, 2027, such employer shall pay individuals with disabilities at least half of the minimum wage required to be paid by employers to employees under federal law; and
On and after July 1, 2027, such employer shall no longer utilize such certificate to pay individuals with disabilities less than the minimum wage required to be paid by employers to employees under federal law.'
Effectively, subminimum wages would be permanently phased out by July 2027, if the Dignity and Pay Act passes during the legislative session. Should it pass, it will take effect July 1.
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