The COVID-19 PA Hazard Pay Grant Program was established to help employers provide hazard pay to employees in life-sustaining occupations during the coronavirus (COVID-19) pandemic. Hazard pay is intended to keep front-line employees working in sectors that are vital to every Pennsylvanians’ existence. The program will help employers provide hazard pay for their employees to retain current employees. 

Created through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, this reimbursement-based grant is available to employers offering hazard pay during the eligible program period and will be administered by the Department of Community and Economic Development (DCED). Businesses may apply for grants up to a maximum of $3 million.

Eligibility

Businesses, healthcare non-profits, public transportation agencies, and certified economic development organizations may apply for funding for employers located and operating in Pennsylvania within one of the following eligible industries:

  • Healthcare and Social Assistance
  • Food Manufacturing
  • Food Retail Facilities
  • Transit and Ground Passenger Transportation
  • Security Services for eligible industries listed above and commercial industries that were not closed as a result of the Governor’s Business Closure Order
  • Janitorial Services to Buildings and Dwellings

Eligible Pennsylvania-based industries include:

  • Healthcare and Social Assistance
  • Ambulatory Health Care Services
  • Hospitals
  • Nursing and Residential Care Facilities
  • Transit and Ground Passenger Transportation
  • Food Manufacturing
  • Food Retail Facilities
  • Security Services for eligible industries listed above and commercial industries that were not closed as a result of the Governor’s Business Closure Order
  • Janitorial Services to Buildings and Dwellings

Grant funds may be used for hazard pay for direct, full-time and part-time employees earning less than $20/hour, excluding fringe benefits and overtime for the 10-week period from August 16, 2020, to October 24, 2020. Applicants may apply for up to $1,200 per eligible full-time equivalent (FTE) employee. Employers may apply for a grant to provide hazard pay for up to 500 eligible full-time equivalent employees per location.

Funding

Grant funds may be used for hazard pay (as defined below) for direct, full-time and part-time employees earning less than $20/hour, excluding fringe benefits and overtime. Funds may only be used to pay hazard pay for eligible employees for the 10-week period from August 16, 2020 through October 24, 2020. Hazard pay means additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19.

Applicants may apply for up to $1,200 per eligible full-time equivalent (FTE) employee. The hazard pay must be paid to the eligible employee over the 10-week period of August 16, 2020 through October 24, 2020 as a $3/hour hazard pay increase to their regular pay rate. 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). No Employer may receive more than $3,000,000 of the funding under the COVID-19 Hazard Pay Grant Program.

How to Apply

Applications will be received between July 16, 2020 and July 31, 2020. To apply for funding, applications must be submitted through the Electronic Single Application (ESA).

 

We are happy to discuss any questions or comments you may have.  Our team is working and available to review with you.  Please contact our office at 610-544-5900 or cares@brinkersimpson.com .

We are in this together,

Brinker Simpson & Company, LLC

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice & cannot be used by the recipient to avoid penalties that may be imposed under the Internal Revenue Code. We strongly advise you to seek professional assistance with respect to your specific issue(s).