Pennsylvania Announces Frontline Employee Hazard Pay Funding for Eligible Employers

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Governor Wolf announced on July 16, 2020 the creation of the COVID-19 Pennsylvania Hazard Pay Grant Program which provides employer funding for frontline worker pay premiums of businesses in eligible industries.  The Governor charged Pennsylvania’s Department of Community and Economic Development (DCED) with administering the $50 million program.  The DCED issued guidelines for the program on July 16 which provide detailed information regarding applicant eligibility, eligible use of funds, scope of the grants, employer requirements, and the application process.  Applicants must apply by July 31, 2020 to be considered by the DCED for the program.  To apply for funding, applications must be submitted through the Electronic Single Application available on the DCED website.

Critically, only businesses in the following industries are entitled to apply for the grant program: (1) Health Care; (2) Food Manufacturing; (3) Food Retail Facilities; (4) Social Assistance; (5) Janitorial Services to Buildings and Dwellings; (6) Transit and Ground Passenger Transportation; and (7) Security Services for specific industries.  The Guidelines emphasize that application for grants will be prioritized by industry in the general order listed above. 

Moreover, there are conditions placed on the grant funding including:

1. only “frontline workers” earning less than $20/hour are eligible for funds under the grant program;
2. the hazard pay must be paid to the eligible employee(s) over the 10-week period of August 16, 2020 through October 24, 2020;
3. the hazard pay must be disbursed as a $3/hour hazard pay increase to eligible workers’ regular pay rate;
4. eligible employers may apply for a grant to provide hazard pay for up to 500 eligible full-time equivalent employees per location ($600,000 maximum grant per location) and no employer may receive more than $3,000,000 in funding; and
5. an approved business will submit a payment request at the end of the eligible period seeking reimbursement for actual hazard pay expenditures by October 31, 2020.

Seyfarth continues to monitor the Wolf Administration’s response to COVID-19 and will provide further updates as available.