Bill for Hazard Pay for Essential Workers

The COVID-19 pandemic put immense strain on our nation’s essential workers. Doctors nurses, grocery clerks transit workers, and many others braved potential infection to keep America running. In recognition of their sacrifice, a bill was introduced in Congress to provide hazard pay to these vital workers.

What is the Hazard Pay for Essential Workers Act?

The Hazard Pay for Essential Workers Act is a bill introduced in the House of Representatives in September 2020 The legislation aims to compensate essential employees who faced heightened risks due to COVID-19.

Specifically, the bill would:

• Provide a $13 per hour premium on top of regular wages for essential workers
• Apply retroactively from the start of the public health emergency on January 27, 2020 through December 31, 2020
• Cover a broad range of public and private sector employees in healthcare, transportation, sanitation, grocery, and other fields

The premium essentially doubles the pay of minimum wage workers for the duration of the pandemic. For the average essential worker making $20 per hour, it provides an extra $13,000 in 2020 earnings.

What Led to the Push for Hazard Pay?

The onset of COVID-19 fundamentally changed working conditions across many industries. Essential employees unable to work from home faced health risks and psychological distress.

Despite the hazards, most essential workers continued earning their typical pay. They did not receive additional compensation for the dangers of reporting to work during a pandemic.

As the health crisis wore on, there were growing calls to provide hazard pay to compensate these workers for their risks and contributions. Major unions led the push for premium pay for their members.

Polling showed over 80% of Americans supported hazard pay for frontline workers. Legislators crafted the federal bill to provide the extra compensation retroactively.

Who Would Receive Hazard Pay Under the Act?

The legislation broadly defines essential workers who would qualify for the $13 per hour premium. Eligible recipients include:

• Healthcare workers like doctors, nurses, aids, technicians, and janitors in hospitals, clinics, nursing homes, and other facilities.
• First responders like EMTs, paramedics, and firefighters.
• Teachers, school staff, childcare workers, and social service employees.
• Domestic workers and home care providers.
• Pharmacy employees, laboratory technicians, mortuary services, and plasma/blood donation workers.
• Airline, airport, mass transit, and passenger rail workers.
• Food production, grocery store, food delivery, and agriculture workers.
• Postal, shipping, and warehouse workers.
• Gas station attendants.
• Hotel and hospitality employees.
• Delivery, rideshare, and taxi drivers.
• Sanitation, cleaning, and waste management employees.
• Workers manufacturing personal protective equipment (PPE).

Independent contractors in these fields would also qualify to ensure gig workers are covered. Employees must make under $200,000 annual income to be eligible.

How Would the Hazard Pay Program Be Funded?

As proposed, the bill would create a Heroes Fund through the Social Security Administration to finance the hazard pay program. Grants would be provided to employers to fund the additional $13 per hour premium for eligible workers.

To pay for the grants, the bill imposes a surtax on high-income individuals. The surtax would be:

• 15% on incomes between $1 million and $2 million
• Additional 3% on incomes between $2 million and $3 million
• Additional 4% on incomes exceeding $3 million

This progressive tax on the wealthiest Americans would generate revenue to reimburse employers for the hazard pay.

Independent contractors and gig workers would apply directly to the Heroes Fund for their hazard pay, rather than going through an employer.

What is the Status of the Hazard Pay Bill?

The Hazard Pay for Essential Workers Act was introduced in the House on September 25, 2020 by Rep. Ro Khanna of California. The bill gained 17 Democratic co-sponsors.

However, the legislation stalled after being referred to the House Ways and Means Committee. With Republicans opposed, it lacked the bipartisan support needed to advance.

The House passed alternative legislation in May 2020 mandating hazard pay for some essential workers. But the narrowly-focused HEROES Act also stalled in the Senate due to opposition.

Despite the roadblocks in Congress, the push for hazard pay continues. As of 2022, individual states and cities are exploring local hazard pay measures. The campaign for retroactive pandemic compensation persists at the federal level.

What Arguments Support Hazard Pay?

Proponents advance several arguments in favor of compensating essential workers:

• Fairly rewards workers who risked their lives during a national crisis.
• Helps retain essential workers who are overburdened and underpaid.
• Stimulates the economy as workers spend their hazard pay.
• Narrows racial income gaps since minorities are overrepresented among frontline workers.
• Deters profiteering businesses from exploiting essential workers during a pandemic.
• Creates goodwill towards essential workers needed to confront future crises.

Furthermore, advocates argue hazard pay is needed considering the trillions spent on COVID-19 relief for businesses. Essential workers have not received the same level of direct support.

What Concerns Exist Around Hazard Pay?

While the campaign for hazard pay is popular, concerns persist about its costs and feasibility:

• Provides universal pay bump without evaluating individual risks.
• Does not account for workers already paid bonuses or granted hazard pay.
• Employers may lack payroll capacity to implement retroactive payments.
• Tax hikes on the wealthy may meet resistance.
• Expands federal administrative duties during the ongoing pandemic.
• Establishes expectation that government will compensate workers affected by future crises.
• Potential for fraud and abuse within a large new hazard pay program.

Critics argue alternatives like increased workplace safety measures or direct stimulus payments could better support essential workers.

Is Hazard Pay Still Warranted?

The window may have passed for broad federal hazard pay legislation. As the pandemic wanes, it becomes more difficult to justify retroactive compensation in 2022. The original bill called for premium pay through the end of 2020.

However, the debate endures around fairly rewarding essential workers who served their communities during the height of COVID-19. Policies like higher wages, relaxed quarantine rules, free healthcare, college scholarships, and hiring preferences recognize their contributions.

While the battle in Congress for across-the-board hazard pay appears over, essential workers remain underappreciated. Solutions centered on occupational safety, mental health, career advancement, and financial stability continue garnering support nationwide.

Outlook for Essential Workers

Essential employees salvaged some sense of normalcy during an unprecedented crisis. Their willingness to work under duress sustained American livelihoods. However, this dedication came at the cost of workers’ own health, family lives, and financial security.

Hazard pay aims to provide due compensation after the fact. But greater change is needed to protect the welfare of essential workers serving under any conditions. Achieving that reform remains a work in progress long after the initial crisis stabilizes.