According to the Department of Labor, hazard pay is “additional pay for performing hazardous duty or work involving physical hardship." Hazard pay is either already calculated into the usual rate of pay or paid on an incident-related basis. No law limits offering hazard pay, but only some federal employees are legally entitled to the hazard pay differential. Private sector employees, like nurses and grocery store clerks, are not entitled to additional pay. Employers may use their discretion in raising the rate of pay to account for the increased risk of exposure to COVID-19, but are not obligated to do so. For those advocating for hazard pay, the law at present will not be useful.
In response to these concerns, several Senate Democrats are proposing to include a hazard pay program in the next coronavirus stimulus bill. Senate Minority Leader Chuck Schumer introduced the bill Tuesday night and outlined how essential workers can benefit from this program. Calling it the “Heroes Fund,” the proposal is meant to benefit essential workers including healthcare professionals, grocery store employees, and transit workers. The proposal has two parts.
(1) Providing essential workers a $13-per-hour raise that would be “retroactive to the start of the crisis and authorized through December 21, 2020.” Workers earning less than $200,000 per year can get up to $25,000 whereas workers earning above that amount are capped at $5,000. According to one source, the funding goes directly to eligible employers who then distribute the additional pay accordingly. Employers would be required to keep a record of the payments and return any unspent money back to Washington. Another source provides that the proposal does not include specifics on how this additional pay would be delivered to workers. Those working from home or those on some sort of leave do not qualify for the program.
(2) Providing a one-time payment of $15,000 as an incentive to recruit and retain healthcare workers. It’s unclear whether this incentive applies only to new recruits or it applies to everyone working in the healthcare field. If the latter, it’s unclear how the incentive interplays with the first part of the proposal.
House Democrats are also considering some sort of proposal to provide extra compensation for healthcare workers. Congressman Sean Patrick Maloney said the program may take the form of “some sort of combat pay or some sort of tax credit.”
The “Heroes Fund” proposal is the most detailed version of a hazard pay bill put forward by any government authority. New York State and City officials have yet to comment on some sort of hazard pay for essential workers and healthcare professionals in the future.
If you have questions about your pay or workplace safety, please get in touch with us for a free legal consultation.
04/20/20 Update: In a press conference on April 20, 2020, Governor Andrew Cuomo called on the federal government to provide hazard pay to front-line workers. The Governor stated, "This crisis is not over yet, and as long as these workers continue to work and expose themselves to the virus, they should be properly compensated. I am calling on the federal government to provide hazard pay to these frontline workers and give them a 50 percent bonus because they are the true heroes in this crisis."
Written by Law Clerk Rafita Ahlam
