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Pennsylvania Releases Hazard Pay Grant Application

Published on

July 20, 2020

With the unemployment expansion resulting in some laid-off individuals earning more than essential workers, many groups of employees have been pushing for government-funded “hazard” pay for essential workers that never stopped working during the COVID-19 pandemic.

Pennsylvania listened, and the state has now made CARES Act funding available to life-sustaining businesses to provide hazard pay to employees during the 10-week period from August 16 to October 24. Eligible life-sustaining businesses include all businesses and nonprofits that were legally able to stay open during Gov. Tom Wolf’s business closure order in March.

To receive hazard pay under the grant, employees must earn less than $20 per hour, excluding fringe benefits and overtime. Businesses must use the funds to reimburse themselves for paying these employees an extra $3 per hour hazard pay over the regular pay rate during the 10-week period. Employers may seek a grant for up to 500 eligible full-time equivalent employees per location ($600,000 maximum), and up to a business-wide maximum of $3 million.

Click here to find the application, which is available only until July 31.

If you have any questions on whether your business is eligible for the grant or have any questions about the application process, please contact me.

DISCLAIMER: As we face an unprecedented time of legal and business uncertainty, we are working to provide updates on the status of important legal news related to COVID-19. It is important to note that the situation is changing rapidly and the information provided in our alerts is not intended to create an attorney-client relationship. The information contained in our alerts is for general informational purposes only and should not be construed as legal advice or a substitute for legal counsel. If you have questions about your legal situation or about how to apply information contained in this alert to your situation or about how any other information found on our website may affect your business, you should reach out to one of our attorneys. We assume no responsibility for the accuracy or timeliness of any information provided herein or by any linked site. As information changes rapidly, users are strongly advised to verify any information before relying upon it.

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