The COVID-19 pandemic that began in 2020 put many essential workers across industries at great risk as they continued serving on the frontlines In response, a bill called the “Heroes Act” was introduced in the US. House of Representatives to provide hazard pay to compensate these essential workers. This article will explain this proposed bill for hazard pay for essential workers during the pandemic.
Overview of the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act
In May 2020, the HEROES Act was introduced by the U.S. House of Representatives. This $3 trillion bill aimed to provide financial relief and assistance to Americans during the COVID-19 pandemic. The wide-ranging bill included:
- Direct stimulus payments to Americans
- Increased unemployment benefits
- Rent and mortgage relief
- Aid to state and local governments
- Support for COVID-19 testing and healthcare providers
Importantly, it also proposed providing temporary hazard pay to essential frontline workers.
Details on the Hazard Pay for Essential Workers Provisions
A key component of the HEROES Act was the proposed increase in pay for essential workers who braved exposure risks to continue serving Americans Here are details on the hazard pay provisions
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Eligible Workers – Workers in over 60 essential occupations would qualify, including healthcare, foodservice, transportation, sanitation, childcare, education, and more
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Hazard Pay Amount – Qualifying workers would receive an additional $13 per hour premium on top of regular wages for work performed from January 27, 2020 through 60 days after the pandemic emergency ends.
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Payment Method – Employers could claim tax credits for the hazard pay against their payroll taxes. Self-employed individuals could claim credits on their income taxes.
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Funding Allocation – The bill allocated $190 billion to fund and administer the hazard pay program.
The hazard pay provision aimed to both compensate essential workers for their risks and incentivize them to keep working critical jobs safely during the pandemic.
Status of the HEROES Act Hazard Pay Proposal
The HEROES Act passed the Democratic-controlled House in May 2020, but stalled in the Republican-majority Senate. Compromise legislation without the hazard pay provision ended up moving forward instead.
As of 2022, the hazard pay component of the HEROES Act has not been enacted. The original bill remained stalled in the Senate and no standalone hazard pay bill gained traction either.
However, the proposal helped bring renewed attention to the issue of compensating essential workers asked to take greater risks during public health emergencies. Advocacy groups continue pushing for pandemic hazard pay legislation.
Why Hazard Pay for Essential Workers Makes Sense
There are strong arguments favoring providing hazard pay to essential workers deployed in higher risk situations:
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Compensates risks – Workers are asked to take on greater hazards beyond normal conditions; extra pay helps account for that.
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Incentivizes service – The pay boost encourages essential workers to keep showing up during times of need.
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Fairness – Many workers don’t have the option of just staying home and deserve acknowledgement.
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Economic stimulus – Putting billions into the pockets of lower income essential workers would also provide an economic boost.
Ensuring these workers receive appropriate compensation through their most dangerous deployments remains an issue many legislators continue advocating for.
Criticisms of Hazard Pay During the Pandemic
Of course, the hazard pay proposal also drew some criticisms, including:
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Expense – detractors argued the $190 billion price tag was exorbitant.
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Administration – challenges of verifying eligibility and administering payments.
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Fairness – arguments that pay increases should be broadened beyond just essential workers.
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Temporary need – some noted hazard pay is only essential for the duration of the acute emergency.
Despite these criticisms, the core idea of compensating our most exposed essential workers during an extraordinary crisis retains widespread popularity.
The HEROES Act highlighted the debate around providing hazard pay for essential workers during the pandemic. Though it did not ultimately become law, it kept important discussions ongoing around properly acknowledging and compensating the risks these workers take on. Essential workers continue making their voices heard on this issue as well.
The Bottom Line
While the original HEROES Act stalled, the broader conversation around temporary pandemic hazard pay remains active. As we’ve seen with COVID-19, essential workers on the frontlines keep our society running even in the most challenging times. Compensating these brave individuals fairly for their exceptional sacrifices makes sense to many. This complex issue balancing costs, risks and fairness will continue being discussed by lawmakers and advocates going forward. But the case for acknowledging essential workers through targeted hazard pay programs remains compelling.
Part 2: The state of hazard pay
In Congress, Democratic and Republican proposals for federal hazard pay started ambitious, but languished in the Republican-controlled Senate, with little prospect of being passed into law.
In April, Democrats in Congress proposed hazard pay legislation to provide generous compensation to essential workers across the public and private sectors. This $200 billion “Heroes Fund” was part of the original $3 trillion “HEROES Act” passed by the House on May 15. Through the fund, eligible workers would receive up to $25,000 in “pandemic premium pay” through the federal government—equivalent to an extra $13 per hour—from the start of the public health emergency until the end of the year. The eligibility requirements of the fund were expansive, including even highly paid essential workers such as doctors. Essential workers earning up to $200,000 a year (or approximately $100 per hour) would be eligible for the full amount of up to $25,000, while workers earning over $200,000 would be eligible for a smaller amount of $5,000.
In May, Senator Mitt Romney (R-Utah) proposed a narrower “Patriot Pay” proposal for a temporary bonus of up to $12 per hour. Compared to the Democrats’ proposal, Sen. Romney’s proposal included a lower income cap (annual incomes up to $50,000 could receive the full amount and incomes up to $90,000 would receive a smaller amount), a shorter timeline (May 1 through July 31), and only some of the money (three-quarters) coming from the government and the rest from employers. Sen. Romney explained that the legislation would address the risks that frontline essential workers face as well as the “anomaly” of some essential workers earning less money than unemployed workers receiving enhanced unemployment benefits.
Many Republicans in Congress expressed little interest in either hazard pay proposal, and neither has been passed into law. After House Democrats passed their $3 trillion HEROES Act, Senate Republicans introduced a smaller, $1 trillion HEALS Act in July. That bill did not include any hazard pay for essential workers. It also excluded new state and local aid, which would shore up struggling state and local government budgets with the funds necessary to keep public sector frontline essential workers employed. The result was dimmed prospects for any federal hazard pay. On September 28, House Democrats introduced an updated, leaner version of the HEROES Act which did not include the original Heroes Fund for hazard pay for essential workers.
Ten largest low-wage frontline essential jobs that pay less than $15 per hour, 2018
Occupation | Number | Median wage | % Black | % Latino or Hispanic |
Personal care aides | 2,152,540 | $11.55 | 23% | 22% |
Cashiers | 1,959,950 | $10.78 | 17% | 18% |
Janitors and cleaners, except maids and housekeepers | 1,774,500 | $12.55 | 17% | 26% |
Laborers and freight, stock, and material movers | 1,471,370 | $13.59 | 22% | 21% |
Nursing assistants | 1,389,520 | $13.72 | 35% | 12% |
Stock clerks and order fillers | 1,146,110 | $12.36 | 18% | 19% |
Retail salespersons | 1,008,380 | $11.63 | 12% | 17% |
Security guards | 897,150 | $13.70 | 33% | 17% |
Home health aides | 775,890 | $11.63 | 37% | 17% |
Landscaping and groundskeeping workers | 751,150 | $13.94 | 11% |
33% |
Source: Brookings analysis of Department of Homeland Security, Bureau of Labor Statistics, and Emsi data
During our national reckoning over structural racism and inequality, hazard pay can also help address racial equity. Black and Latino or Hispanic workers are overrepresented among low-wage frontline essential workers. In 2018, Black workers comprised 13% of all U.S. workers, but made up 19% of all low-wage frontline essential workers. Latino or Hispanic workers comprised 16% of all U.S. workers, but 22% of low-wage frontline essential workers.
Millions of Black and Latino or Hispanic essential workers hold critical but undervalued jobs in caregiving and health care, cleaning, and other services, often earning poverty wages with few (if any) benefits. Hazard pay targeted to low-wage essential workers would disproportionately benefit workers of color, who too often are excluded from decent-paying work.
Democrats calling for $25K in hazard pay for essential workers
What is the hazard pay for essential workers act of 2020?
Hazard Pay for Essential Workers Act of 2020 This bill provides an additional $13 per hour of premium pay to employees performing specified essential work up to a maximum of $10,000 during and shortly after the COVID-19.
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. After an employer becomes an “essential work employer,” it will be obligated to provide hazard pay (pandemic premium pay) to its essential workers.
How much hazard pay do essential workers get?
Essential workers whose basic pay is $200,000 or more per year are eligible to receive a maximum $5,000 hazard pay premium. Employers will be permitted to deduct payroll taxes from all hazard pay premium payments that it transfers to employees. 5. How would essential workers sign up for hazard pay?
What is the hazard pay bonus for essential workers?
What got passed last week does provide the $13 per hour hazard pay bonus for essential workers, but it maxes out at $10,000 instead of $25,000 because that is the highest amount that could get passed in the House. Remember though, this is not law yet.
Does the Heroes Act provide hazard pay funding for essential workers?
Nearly a week ago, the House passed The Heroes Act which provides $200 billion in hazard pay funding for essential workers, among many other things. Hazard pay questions are now flying in just as they did with the topic of the second stimulus check. Here are the facts on seven key areas for essential workers and hazard pay.
How many versions of the hazard pay bill are there?
There is one version of the bill to provide hazard pay to frontline essential workers employed during the COVID–19 pandemic.