Essential workers could be getting an increase in their paychecks under legislation introduced in the state Senate recently.
Sen. Andrew Gounardes, D-Brooklyn, has introduced S.8955, which would direct the state labor commissioner to tell employers to make hazard payments to essential workers during a state disaster emergency. The payments will be a percentage or a fixed dollar amount and not be more than $25,000 in any year for any essential worker earning less than $200,000 a year or $5,000 for any essential worker earning more than $200,000.
“During an unprecedented pandemic or state of emergency, many essential workers continue to go to work exposing themselves to high-risk conditions without appropriate protective equipment, adequate safety standards, or basic job protections,” Gounardes wrote in his legislative justification. “This leaves them susceptible to contracting contagions and other dangers at a higher rate than the general public.”
Hazard payments would be in addition to and not be part of an essential worker’s basic annual salary, and would not affect any performance advancement payments, performance awards, longevity payments or other rights or benefits to which an essential worker may be entitled. A hazard payment shall be terminated upon the cessation of the state disaster emergency.
Essential employers include essential health care operations including research and laboratory services; essential infrastructure including utilities, telecommunication, airports and transportation infrastructure; essential retail including grocery stores and pharmacies; essential services including trash collection, mail, and shipping services; news media; banks and related financial institutions; providers of basic necessities to economically disadvantaged populations; construction; vendors of essential services necessary to maintain the safety, sanitation and essential operations of residences or other essential businesses; vendors that provide essential services or products, including logistics and technology support, child care and services needed to ensure the continuing operation of government agencies and provide for the health, safety and welfare of the public.
Hazard pay has been a topic of discussion during the COVID-19 pandemic. Pa. Gov. Tom Wolf created a hazard pay program with $50 million the state received from the federal CARES Act. According to Wolf’s office, the administration received more than 10,000 applications totaling nearly $900 million during the two week application window. Of those applications, more than 5,000 businesses requesting $300 million were eligible. Of those 5,000 eligible employers, 639 were awarded $50 million to support a $3 per hour increase in pay for 41,587 workers across seven eligible industries.
Vermont created a similar program, the Front-Line Employees Hazard Pay Grant PRogram, with $28 million in CARES Act funding. Eligible workers must make $25 per hour or less, log required hours working a job with an “elevated risk” and must have worked between March 13 and May 15, 2020. The hazard pay can be up to $2,000 per worker.
The HEROES Act, proposed by the U.S. House of Representatives as its second stimulus proposal, would allocate $200 billion for hazard pay. The hazard pay would be set aside in a “Heroes Fund” and provide an additional $13 per hour for essential frontline workers up to a maximum premium pay of $25,000 for workers earning less than $200,000 and a maximum of $5,000 for workers earning more than that through the end of the year. The hazard pay would be retroactive to Jan. 27, 2020.
The Heroes Fund also would provide a $15,000 recruitment incentive in the form of a sign-on bonus for first responders and health and home care workers who sign on to do essential work. It also would provide additional benefits, such as a lump sum of the hazard pay to relatives if an essential worker dies while working through the pandemic.
The COVID-19 pandemic has put a spotlight on the risks faced by essential workers across many industries. From healthcare staff to grocery clerks these frontline employees have continued serving through dangers of virus exposure. In response a major effort in Congress aimed to provide hazard pay compensating these workers for health risks. However, the status of passing federal legislation mandating extra pay remains uncertain.
The Push for Hazard Pay
Hazard pay gives additional wages for hazardous duties involving physical hardship or heightened risk The premise is that workers taking risky jobs deserve higher pay for endangering themselves
During the pandemic unions advocates, and some in Congress pushed hazard pay for private and public employees with high virus exposure including
- Doctors, nurses, hospital personnel
- First responders
- Food supply workers
- Grocery staff
- Pharmacy employees
- Transit workers
- Janitors and sanitation workers
- Childcare providers
- Postal workers
These frontliners faced illness, quarantines, lack of protection, and constant infection risk. Hazard pay aims to compensate them for ongoing health threats and uncertainties.
The HEROES Act
The HEROES Act, a $3 trillion coronavirus relief plan, passed the Democrat-led House in May 2020. It included stimulus checks for Americans and “premium pay” boosting wages $13 per hour for essential workers.
However, the HEROES Act stalled in the Republican-controlled Senate over disputes on scope and cost. Hazard pay provisions were dropped from subsequent deals. But the concept seeded new legislation focused on essential worker pay.
The Hazard Pay for Essential Workers Act
In November 2020, House Democrats introduced the “Hazard Pay for Essential Workers Act.” Lead sponsor Rep. Ro Khanna said the bill would raise essential employee wages $13 per hour for pandemic work.
Key details include:
- The $13 hourly raise would be on top of regular pay from January 2020 until the emergency ended.
- Workers would get hazard pay for up to 1,200 hours during this period.
- Employers would pay, but could apply for federal grants covering costs.
Obstacles Facing the Bill
Despite early fanfare, the Hazard Pay Act faces challenges becoming law:
- Narrow eligibility – Frontline workers are included, but many essential employees left out like warehouse, farm, utility, and many government workers.
- Employer resistance – Business groups oppose federal hazard pay mandates citing cost and regulation concerns.
- Republican opposition – Bipartisan Senate support needed but most Republicans call hazard pay unnecessary.
- Cost – With broad eligibility, price tag could approach $180 billion. Difficult to pass without offsets.
- Alternative relief – Policymakers argue earlier stimulus checks, unemployment aid, and PPP already provided substantial worker relief.
What Are the Bill’s Chances?
Despite union advocacy and progressive Democrat support, the Hazard Pay for Essential Workers Act remains unlikely to pass Congress and become law.
With the partisan split House and Senate, big differences on new spending hinder bipartisan agreement on hazard pay. While public support is shown in polls, the bill lacked momentum.
Original sponsors continue urging action. But leaders focused more on broader economic recovery plans rather than targeted pay legislation.
Barring a breakthrough, the road ahead looks difficult for federal hazard pay despite worthy policy goals. However, the concept could resurface in future pandemic response discussions.
Could States or Localities Enact Hazard Pay?
Given federal hurdles, could state and local governments advance hazard pay? Yes, this represents a potential alternative pathway.
For instance, in January 2021 the Los Angeles County Board of Supervisors mandated large grocery and pharmacy retailers provide an extra $5 per hour in hazard pay for frontline workers. Cities like Seattle and Long Beach passed similar laws.
While lawsuits and preemption battles followed in some areas, this demonstrates minimum wage precedents could compel baseline hazard pay.
Statewide essential worker premium pay legislation was discussed but not yet enacted. But the concept could gain more traction as recognizing frontline contributions to pandemic response remains popular.
Final Thoughts
While the federal Hazard Pay for Essential Workers Act itself seems unlikely to pass, it highlighted an important issue and laid groundwork. Essential employees faced real risks and hardships deserving compensation.
The COVID-19 experience gives a blueprint Congress could follow in future crises. Hazard pay legislation may be revisited later. For now, state and local governments can lead with immediate pay initiatives. But the door should remain open on federal proposals as pandemic recovery continues.
Our essential workers were there when needed most. We now must ensure they are fairly paid for their sacrifices. Hazard pay provides a path to demonstrate gratitude while upholding economic dignity for everyday heroes.
Hazard Pay: 24
Essential Workers: 11
Congress: 7
Pandemic: 6
Frontline: 5
Federal: 5
Employers: 4
Relief: 4
Pay: 4
Workers: 4
Bill: 4
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FAQ
Do we get hazard pay?
How much is hazard pay per hour in Florida?
What happens in hazard pay?
How much is federal hazard pay?
Is hazard pay dead in the Senate?
Now that the House has passed hazard pay for essential workers, it is presenting the bill to the Senate, and Speaker Nancy Pelosi is urging the Senate to take up the bill and begin negotiations immediately. 2. Is hazard pay dead on arrival in the Senate? Not necessarily.
Who is the sponsor of the hazard pay bill?
To provide hazard pay to frontline essential workers employed during the COVID-19 pandemic. The bill’s titles are written by its sponsor. Sponsor. Representative for New Jersey’s 2nd congressional district. Republican. This bill was introduced on September 22, 2020, in a previous session of Congress, but it did not receive a vote.
How does hazard pay work?
In some cases states and local governments provide support to pay for costs; in others hazard pay is done through mandates on employers. Some states opted to leave hazard pay rules up to cities and counties, but 15 have enacted statewide hazard pay legislation.
Where can I find Hazard Pay legislation & proposals?
State-by-state hazard pay legislation and proposals can be found in the appendix. Pay and Duration One model being used by states has hazard pay provided over increments of weeks, months, or pay periods totaling between $60 and $300 a week.
How much would a hazard pay plan cost?
Employers would apply for grants to provide workers with the $13 bonus. While the federal government would provide $200 billion toward these grants, the American Action Forum estimates that the plan could cost up to $673 billion. Senator Romney introduced a different stand-alone hazard pay bill, Patriot Pay.
Does the Heroes Act provide hazard pay funding for essential workers?
Nearly a week ago, the House passed The Heroes Act which provides $200 billion in hazard pay funding for essential workers, among many other things. Hazard pay questions are now flying in just as they did with the topic of the second stimulus check. Here are the facts on seven key areas for essential workers and hazard pay.