The United States has entered a third peak of the COVID-19 pandemic, with cases spiking across the country. Many experts anticipate that the winter months will be the worst yet, and a new study projects that the U.S. could surpass 500,000 COVID-19 deaths by the end of February. As we begin this even deadlier phase of the pandemic, the country’s 50 million frontline essential workers are among the most vulnerable. Are they receiving fair compensation for the worsening hazards they face on the job?
In this report, we look at the state of hazard pay for COVID-19’s frontline essential workers. We follow up on the recommendations we made in our April report, which called on Congress to pass federally mandated hazard pay. At the beginning of the pandemic, the prospects of hazard pay were bright; in April, the House of Representatives passed legislation to create a $200 billion hazard pay fund, while dozens of large companies were offering small, temporary hourly pay bumps and bonuses to frontline workers.
Seven months later, those hopes have largely been dashed. While the hazards of COVID-19 are growing worse, few frontline essential workers are receiving any hazard pay at all. Most large retail employers ended temporary pay bumps months ago, despite many companies earning record sales, eye-popping profits, and soaring stock prices. After facing strong resistance in the Republican-controlled Senate, House Democrats dropped their hazard pay proposal from their revised legislation in September. Innovative hazard pay initiatives by state governments have been among the few bright spots, but the scale of these efforts is small compared to the need.
The failure of the federal government and most employers to provide hazard pay is especially detrimental to low-wage workers, who comprise nearly half of all frontline essential workers. As the pandemic-fueled recession deepens, many of these low-wage workers face additional financial hardship on top of elevated risks of infection. Nearly half of these low-wage frontline workers are nonwhite, with Black and Latino or Hispanic workers overrepresented among critical jobs that pay less than a living wage.
Deeply rooted policy failures and structural problems underpin these inequities—from a woefully inadequate minimum wage, to systemic racism, to the long-term erosion of worker power. Hazard pay is an immediate stopgap measure to ensure frontline workers earn a living wage as they shoulder extreme burdens. It’s a down payment on what should be permanent, lasting change through an increased minimum wage. Here’s how it can be done.
The COVID-19 pandemic has drawn renewed attention to the issue of hazard pay for frontline workers in the United States. With workers in industries like healthcare grocery retail and food service facing increased exposure to illness, several leaders in Congress have introduced legislation aimed at providing additional compensation for hazardous work conditions. As debate continues around the passage of a bill for hazard pay, examining the history of the issue provides context for understanding the goals and challenges of instituting wide-scale policies for compensation beyond normal wages.
What is Hazard Pay?
Hazard pay refers to additional compensation for performing hazardous duties or work involving physical hardship that is not adequately alleviated by protective devices. The Fair Labor Standards Act (FLSA) requires that hazard pay be included in the regular rate of pay when calculating overtime. However, the FLSA does not mandate hazard pay or provide guidelines for which industries or situations warrant it.
Historically, hazard pay policies have been implemented in a patchwork fashion across certain professions and workplaces. For example, some union contracts have negotiated hazard pay for workers, and some public sector jobs like law enforcement contain hazard pay provisions. The military also utilizes hazard pay through policies like Imminent Danger Pay for service members in designated combat zones. But overall, few national standards exist for providing extra compensation for hazardous work conditions across all industries.
Hazard Pay in the Time of COVID-19
The lack of broad hazard pay policies has come under scrutiny during the COVID-19 pandemic With frontline workers facing risks of viral exposure, several leaders in Congress have introduced bills calling for additional pandemic compensation Proposals have included the Pandemic Premium Pay Act, the COVID-19 Hazard Pay Act, the Essential Workers Bill of Rights, and the Heroes Fund.
While the details vary, these bills generally aim to provide essential workers with an additional $13 per hour premium on top of regular wages. Eligible worker categories often include healthcare, grocery employees, transit staff, and other frontline occupations. The proposed plans would have the premiums funded by the federal government, either through direct payments to workers or reimbursements to employers.
Proponents argue that hazard pay is a moral imperative to compensate essential workers for the health risks they face in jobs that cannot be done remotely. Opponents express concerns about the costs of nationwide hazard pay, which could range from $180 billion to $345 billion over six months according to different projections.
Challenges in Administering Hazard Pay
Creating an equitable, nationwide system for hazard pay presents some challenges:
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Defining eligibility: Determining which occupations warrant hazard pay is complex, as exposure risks can vary greatly even within industries like healthcare. Efforts to restrict eligibility could lead to perceived unfairness.
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Administering payments: Passing costs on to employers rather than providing direct federal payments adds administrative burdens. A payroll tax credit model has been proposed as a compromise.
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Sustaining future funding: A one-time payment during the pandemic may not address the ongoing hazards certain frontline jobs face. But permanent federal hazard pay would require continual funding sources.
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Preventing fraud: Oversight measures would be needed to ensure workers actually receive premiums and employers do not misuse funds.
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Coordinating with existing policies: Hazard pay could overlap with existing essential pay, meaning workers receive multiple forms of additional compensation. Defining how these policies interact could get complicated.
The Outlook for Pandemic Hazard Pay
While hazard pay has garnered growing public support during the pandemic, the odds of legislation passing face significant hurdles. None of the major bills proposed have become law so far. Efforts stalled in 2020 due to then-President Trump’s opposition and lack of support among Senate Republicans. With Democrats now controlling Congress and the presidency as of 2021, the chances of a bill advancing have improved. But concerns about costs and scope remain barriers to enacting temporary COVID-19 hazard pay, let alone permanent policies.
Still, the crisis has elevated the risks faced by frontline workers in the public consciousness. This increased awareness could provide momentum for revamping hazard pay standards in certain high-risk occupations, even if universal policies prove difficult to institute. As with many labor policies, progress may come gradually through local ordinances and grassroots worker advocacy. But the pandemic has undoubtedly opened the door to reassessing how we as a society compensate work performed under hazardous conditions.
Low-wage frontline workers deserve hazard pay
The case for hazard pay is especially urgent for the millions of frontline essential workers who earn low wages. From certified nursing assistants to housekeepers to farm laborers, the essential jobs that are vital to the country and require workers to risks their lives are disproportionately low-paying. We calculate that, as of 2018, nearly half (47%) of all frontline essential workers earned less than a living wage that can sustain a family.
Daryll Cox, a poultry plant worker in Virginia, is one of the nearly 19 million frontline essential workers who earn less than $15 an hour. In an interview this summer, Cox, who is Black, discussed the hardships of his job during the pandemic.
“It’s been a challenge for everybody,” Cox said. “We work around 600 people a night in a packed environment. You just have to pray and believe and hope that the person that you’re working next to is not infected.” He said the “fear of not knowing” causes great anxiety, “wondering if the person working just inches away from you has it, being scared if somebody coughs or sneezes.”
Cox said he enjoys his job, but laments the low wages he earns. Workers at his plant typically make $12 to $14 an hour—considerably less than a living wage. After paying taxes and insurance, Cox said there is little left to pay bills and support a family. He said that even a small hazard pay increase would make a difference.
“We’re not making much,” Cox said. “If you add $2 to $3 an hour, you’d get at least $15. To be in this environment with all the money that we know the company makes, I don’t think it would set back the company at all to at least show us appreciation by giving us a $2 to $3 raise. This is the sentiments of at least 85% of other employees.”
Hazard pay is one way to immediately correct the financial injustice for frontline essential workers who risk their lives—and their families’ lives—without the dignity of wages that can support them. But it is ultimately a stopgap measure—essential workers’ low wages reflect long-standing policy failures and illustrate the need for permanent reforms.
For over a decade, the federal minimum wage has remained stuck at $7.25 per hour, a wage so low it would put workers earning it below the poverty line. Meanwhile, there is overwhelming public support to raise it to $15 per hour. Frontline workers earning paltry wages deserve permanent pay increases and lasting changes to these policy failures. In the interim, hazard pay can make an immediate difference in their lives during the pandemic.
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.
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FAQ
What is normal hazard pay?
The specific amount will vary based on the job and tasks involved. Many companies determine hazard pay by the years each employee has been doing the work. The more years completed, the more hazardous situations the worker has exposed themselves to. For example: One to five years of service qualifies for $50 hazard pay.
What is the government hazard pay?
Hazardous duty pay is additional pay for the performance of hazardous duty or duty involving physical hardship. Pay for dangerous work is given to General Schedule (GS) workers who are covered by Chapter 51 and Subchapter III of Chapter 53 of Title 5, United States Code.
What qualifies as hazard pay in California?
Hazard pay means additional pay for performing hazardous duty or work involving physical hardship. As an example, a physical hardship is a job duty that causes extreme physical discomfort and distress that can’t be fixed by safety gear.
How much is hazard pay and imminent danger pay?
HFP/IDP is payable at the monthly rate of $225. 00 (regardless of duty time within that month spent in the area). Everyone in the active and reserve components gets the full monthly benefit, no matter how many days they are on active duty or how many days they get basic pay.
What is hazard pay?
Hazard pay is compensation added to a worker’s regular rate for performing hazardous duty. Hazard pay typically applies when an employee’s work duties cause extreme physical hardship or severe psychological distress. Positions that could qualify for hazard pay include:
What are the hazard pay laws?
Speak with an employment attorney near you to learn about the hazard pay laws in your area. Federal laws do not address hazard pay amounts. However, the Equal Pay Act says that if one worker gets hazard pay at your company, then all workers in the same position and conditions must get the same hazard pay.
Do employees get hazard pay?
Employees won’t usually receive hazard pay for all work performed. Instead, hazard pay is provided only for hours worked in hazardous conditions.
When can an employee get hazard pay?
Danger pay can be given to workers when they do the following: Many jobs offer safety gear, safety precautions, and appropriate counseling for these situations When work is adequately alleviated by protective devices, it’s generally not subject to hazard pay. But when a serious risk remains, hazard pay is common.
Does hazard pay come with a contract?
Hazard pay may come with your contract for a dangerous position. State essential worker definitions differ when hazard pay is government-mandated. Many states defaulted to the federal guidelines outlined by the U. S. Cybersecurity and Infrastructure Security Agency (CISA).
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. If a company is found to be an “essential work employer,” it has to pay its essential workers hazard pay, also known as pandemic premium pay.
