The COVID-19 pandemic has drawn renewed attention to the issue of hazard pay for frontline workers in the United States. With workers in industries like healthcare grocery retail and food service facing increased exposure to illness, several leaders in Congress have introduced legislation aimed at providing additional compensation for hazardous work conditions. As debate continues around the passage of a bill for hazard pay, examining the history of the issue provides context for understanding the goals and challenges of instituting wide-scale policies for compensation beyond normal wages.
What is Hazard Pay?
Hazard pay refers to additional compensation for performing hazardous duties or work involving physical hardship that is not adequately alleviated by protective devices. The Fair Labor Standards Act (FLSA) requires that hazard pay be included in the regular rate of pay when calculating overtime. However, the FLSA does not mandate hazard pay or provide guidelines for which industries or situations warrant it.
Historically, hazard pay policies have been implemented in a patchwork fashion across certain professions and workplaces. For example, some union contracts have negotiated hazard pay for workers, and some public sector jobs like law enforcement contain hazard pay provisions. The military also utilizes hazard pay through policies like Imminent Danger Pay for service members in designated combat zones. But overall, few national standards exist for providing extra compensation for hazardous work conditions across all industries.
Hazard Pay in the Time of COVID-19
The lack of broad hazard pay policies has come under scrutiny during the COVID-19 pandemic With frontline workers facing risks of viral exposure, several leaders in Congress have introduced bills calling for additional pandemic compensation Proposals have included the Pandemic Premium Pay Act, the COVID-19 Hazard Pay Act, the Essential Workers Bill of Rights, and the Heroes Fund.
While the details vary, these bills generally aim to provide essential workers with an additional $13 per hour premium on top of regular wages. Eligible worker categories often include healthcare, grocery employees, transit staff, and other frontline occupations. The proposed plans would have the premiums funded by the federal government, either through direct payments to workers or reimbursements to employers.
Proponents argue that hazard pay is a moral imperative to compensate essential workers for the health risks they face in jobs that cannot be done remotely. Opponents express concerns about the costs of nationwide hazard pay, which could range from $180 billion to $345 billion over six months according to different projections.
Challenges in Administering Hazard Pay
Creating an equitable, nationwide system for hazard pay presents some challenges:
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Defining eligibility: Determining which occupations warrant hazard pay is complex, as exposure risks can vary greatly even within industries like healthcare. Efforts to restrict eligibility could lead to perceived unfairness.
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Administering payments: Passing costs on to employers rather than providing direct federal payments adds administrative burdens. A payroll tax credit model has been proposed as a compromise.
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Sustaining future funding: A one-time payment during the pandemic may not address the ongoing hazards certain frontline jobs face. But permanent federal hazard pay would require continual funding sources.
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Preventing fraud: Oversight measures would be needed to ensure workers actually receive premiums and employers do not misuse funds.
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Coordinating with existing policies: Hazard pay could overlap with existing essential pay, meaning workers receive multiple forms of additional compensation. Defining how these policies interact could get complicated.
The Outlook for Pandemic Hazard Pay
While hazard pay has garnered growing public support during the pandemic, the odds of legislation passing face significant hurdles. None of the major bills proposed have become law so far. Efforts stalled in 2020 due to then-President Trump’s opposition and lack of support among Senate Republicans. With Democrats now controlling Congress and the presidency as of 2021, the chances of a bill advancing have improved. But concerns about costs and scope remain barriers to enacting temporary COVID-19 hazard pay, let alone permanent policies.
Still, the crisis has elevated the risks faced by frontline workers in the public consciousness. This increased awareness could provide momentum for revamping hazard pay standards in certain high-risk occupations, even if universal policies prove difficult to institute. As with many labor policies, progress may come gradually through local ordinances and grassroots worker advocacy. But the pandemic has undoubtedly opened the door to reassessing how we as a society compensate work performed under hazardous conditions.
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FAQ
What is normal hazard pay?
The specific amount will vary based on the job and tasks involved. Many companies determine hazard pay by the years each employee has been doing the work. The more years completed, the more hazardous situations the worker has exposed themselves to. For example: One to five years of service qualifies for $50 hazard pay.
What is the government hazard pay?
Hazardous duty pay is additional pay for the performance of hazardous duty or duty involving physical hardship. Pay for dangerous work is given to General Schedule (GS) workers who are covered by Chapter 51 and Subchapter III of Chapter 53 of Title 5, United States Code.
What qualifies as hazard pay in California?
Hazard pay means additional pay for performing hazardous duty or work involving physical hardship. As an example, a physical hardship is a job duty that causes extreme physical discomfort and distress that can’t be fixed by safety gear.
How much is hazard pay and imminent danger pay?
HFP/IDP is payable at the monthly rate of $225. 00 (regardless of duty time within that month spent in the area). Everyone in the active and reserve components gets the full monthly benefit, no matter how many days they are on active duty or how many days they get basic pay.
What is hazard pay?
Hazard pay is compensation added to a worker’s regular rate for performing hazardous duty. Hazard pay typically applies when an employee’s work duties cause extreme physical hardship or severe psychological distress. Positions that could qualify for hazard pay include:
What are the hazard pay laws?
Speak with an employment attorney near you to learn about the hazard pay laws in your area. Federal laws do not address hazard pay amounts. However, the Equal Pay Act says that if one worker gets hazard pay at your company, then all workers in the same position and conditions must get the same hazard pay.
Do employees get hazard pay?
Employees won’t usually receive hazard pay for all work performed. Instead, hazard pay is provided only for hours worked in hazardous conditions.
When can an employee get hazard pay?
Danger pay can be given to workers when they do the following: Many jobs offer safety gear, safety precautions, and appropriate counseling for these situations When work is adequately alleviated by protective devices, it’s generally not subject to hazard pay. But when a serious risk remains, hazard pay is common.
Does hazard pay come with a contract?
Hazard pay may come with your contract for a dangerous position. State essential worker definitions differ when hazard pay is government-mandated. Many states defaulted to the federal guidelines outlined by the U. S. Cybersecurity and Infrastructure Security Agency (CISA).
Who needs to apply for hazard pay Grant funds?
Actually, employers are the ones who need to apply to receive hazard pay grant funds. If approved, they are then required to pay essential workers accordingly. If a company is found to be an “essential work employer,” it has to pay its essential workers hazard pay, also known as pandemic premium pay.
