All of us probably have either said that or someone said it to us, and it’s almost always a tongue-in-cheek expression of sympathy for a particularly difficult or unpleasant assignment. No actual bump in pay ever comes from those expressions.
However, for untold thousands – or even millions – of American workers, hazard pay may become a reality because of COVID-19.
As Congress considers more financial aid for coronavirus, $3 trillion stimulus package known as the HEROES Act, one provision is providing hazard pay to workers whose occupations have put them on the front lines of the coronavirus pandemic that has killed more than 100,000 Americans. The projected price tag of the COVID-19 hazard pay is $200 billion.
Don’t run to your mailbox or check your bank account to see of a windfall has been deposited just yet. The HEROES Act was passed in the Democratic-controlled House of Representatives; the Republican-controlled Senate strongly opposes much in the 1,815-page bill, more than 90% of which involves other spending. But hazard pay for COVID-19 essential workers has support on both sides of the partisan aisle, so any bill that gets through Congress has a good chance of including hazard pay.
The COVID-19 pandemic has put many Americans in financial distress. Frontline and essential workers have risked their health and safety to keep our country running. Many have called for the government to provide hazard pay to these essential workers as a thank you for their service. The idea of a hazard pay stimulus bill has been controversial, with support on both sides of the political aisle. In this article, we’ll break down what you need to know about the hazard pay stimulus bill.
What is Hazard Pay?
Hazard pay, also known as danger pay, is additional compensation given to workers who perform hazardous duties that involve physical hardship or work involving a physical hardship Hazard pay is designed to compensate workers for undertaking risky jobs that expose them to dangers like viruses, chemicals, severe weather, violence, and more.
Essential workers like healthcare professionals grocery store employees sanitation workers, and more have faced increased exposure to COVID-19 as they continue to work during the pandemic. Hazard pay aims to compensate these workers for the elevated health risks they face in their jobs.
The Push for Hazard Pay for Essential Workers
As the COVID-19 pandemic unfolded in early 2020, many called for hazard pay bonuses for frontline essential workers. These workers have put their health and safety at risk to keep our society functioning during unprecedented times. Jobs like nursing, doctoring, food retail, public transit, and sanitation have become high-risk due to increased viral exposure.
Many view hazard pay as a necessity to compensate these essential workers for their sacrifices. Others see it as a way for corporations and the government to say “thank you” and show appreciation for those who cannot work from home. Polls have shown widespread public support across political affiliations for providing hazard pay bonuses for frontline workers.
Unions representing essential workers voiced strong support for hazard pay. For example, the United Food and Commercial Workers International Union advocated for a $13 per hour hazard pay raise for grocery workers. Several major grocery chains like Kroger, Albertsons, and Whole Foods implemented temporary hazard pay raises in spring 2020 in response to public and union pressure.
Heroes Act – The $3 Trillion Dollar Stimulus Bill
In May 2020, House Democrats passed a $3 trillion coronavirus relief bill titled the Heroes Act. The wide-ranging stimulus package included a second round of stimulus checks, unemployment benefit extensions, financial aid for states and cities, and funding for coronavirus testing and tracing. One of the most controversial elements was the Heroes Fund – a $200 billion fund aimed at providing hazard pay for essential workers.
The Heroes Fund would have provided a $13 per hour pay increase for essential workers, up to a maximum of $25,000. This would cover eligible workers earning less than $200,000 per year who worked between February and December 2020. The plan defined essential workers broadly, potentially covering tens of millions of Americans across sectors like healthcare, food retail, transportation, education, sanitation, and more.
The Heroes Act passed the Democrat-controlled House but did not advance in the Republican-led Senate. Republicans widely criticized the $3 trillion price tag and specific provisions like the Heroes Fund. However, the bill represented House Democrat’s opening offer and demonstrated the priority they placed on hazard pay for frontline workers.
Health Heroes Act – Senate Democrats Propose $30,000 Hazard Pay Plan
In April 2020, Senate Democrats introduced the Health Heroes Act to provide hazard pay to essential healthcare workers on the frontlines of the pandemic. Sponsored by Senator Chuck Schumer, the bill would grant healthcare providers an estimated $30,000 in extra hazard pay compensation.
Under the plan, hospitals, community health centers, and drug treatment facilities could apply for federal grants to provide hazard pay bonuses to staff providing direct patient care to COVID-19 patients. The amount employees would receive depends on the number of days they provided care to coronavirus patients. The grants aim to compensate providers and incentivize healthcare workers to continue treating COVID patients.
The Health Heroes Act did not advance out of committee to a Senate vote. However, it demonstrated congressional Democrats’ support for meaningful hazard pay legislation targeting frontline healthcare workers. Republicans argued such bills were too costly and not targeted enough in scope.
American Rescue Plan Act of 2021
After President Biden took office in 2021, Democrats moved quickly to pass a new major stimulus bill. The $1.9 trillion American Rescue Plan Act delivered $1,400 stimulus checks, unemployment bonus extensions, small business aid, and funds for vaccines and reopening schools. Notably absent was any provision for hazard pay for essential workers.
Earlier proposals for the bill included grants to provide grocery store workers with hazard pay. Unions and progressive Democrats urged the inclusion of hazard pay funding in the bill. However, the final version passed in March 2021 did not include any money specifically for extra compensation for frontline employees.
While supporting the overall bill, groups like the United Food and Commercial Workers expressed disappointment that hazard pay was left out. Some progressives saw this as a sign that hazard pay for essential workers would not become a reality.
The Challenges of Passing Hazard Pay Legislation
Despite bipartisan support for compensating essential workers, major legislative action on hazard pay has stalled so far. Turning general goodwill into law has proven difficult for several reasons:
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Cost – Meaningful hazard pay proposals carry billion or trillion-dollar price tags. Some conservatives balk at the high cost and question if limited funds should be broadly spread across sectors.
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Targeting – With limited resources, deciding which occupations qualify as “essential” enough to receive extra pay becomes challenging. Figuring out who is eligible draws criticism that the definitions are either too broad or too narrow.
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Timing – Early pandemic urgency has faded in some minds, making the need for retroactive hazard less pressing for some.
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Precedent – Providing hig
HEROES Act Hazard Pay Amount
The original bill said that an essential work employer shall pay each of its essential workers $13 for each hour of work performed from Jan. 27, 2020 until 60 days after the last day of the COVID-19 public health emergency. The maximum payment for workers who make under $200,000 per year would be $10,000; for employees who are more highly paid, the maximum would be $5,000.
Again, don’t start spending that money right away. Several major items from the original bill were removed before the House of Representatives passed it on May 15, including monthly stimulus to all adults, and the high price tag and the sheer scope of the legislation may be more than Senate Republicans can stomach.
Max Fay has been writing about personal finance for Debt.org for the past five years. His expertise is in student loans, credit cards and mortgages. Max inherited a genetic predisposition to being tight with his money and free with financial advice. He was published in every major newspaper in Florida while working his way through Florida State University.
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Definition of an Essential Worker
The original bill defined the term as any individual who does essential work either as an employee or independent contractor. It also states that such work does not include teleworking from home but involves regular, in-person interaction with patients, the general public or with co-workers who perform such work, or by regularly physically handling items handled by patients, the public or co-workers who do that.
Monthly Stimulus Checks | Hazard Pay | The Values Debate
Does the Heroes Act provide hazard pay funding for essential workers?
The House passed The Heroes Act almost a week ago. Among other things, it gives $200 billion to essential workers for hazard pay. Questions about risk pay are now pouring in, just like they did when the second stimulus check was talked about. Here are the facts on seven key areas for essential workers and hazard pay.
How much Hazard Pay is in the Heroes Act?
As its version of a fourth coronavirus stimulus package, the House passed the Heroes Act almost four months ago. It included $200 billion in hazard pay funds for essential workers as well as a second $1,200 stimulus check. As of today, near silence is coming from Congress on the topic of hazard pay.
How much is a stimulus check based on the Heroes Act?
Like the CARES Act, the HEROES Act includes a one-time stimulus check payment of up to $6,000 per household or $1,200 per person. However, it has a number of more generous features. Individuals earning up to $75,000 would get a one-time $1,200 check. Couples earning up to $150,000 would be eligible for $2,400.
What do essential workers feel about hazard pay?
Essential workers feel expendable and exhausted. Prior to the coronavirus, essential workers were not appreciated, valued, or paid enough. Now that they are, they are being called heroes, so it makes sense that hazard pay would remain a top priority for Congress. Today, essential workers are being celebrated, thanked and applauded.
Does the stimulus bill include a second $1200 stimulus check?
The bill the House passed does include a second $1,200 stimulus check. If the bill becomes law—yes—another one-time stimulus check would go out to those who qualify. Right now, the House is only willing to send one more stimulus check. Most Americans want monthly checks, but the House only wants to send one.
Is the stimulus package a ‘disaster’?
Sanders called the new stimulus package backed by the GOP a “disaster” in a tweet on July 28. He said he was worried that the bill didn’t include hazard pay for workers who were considered “essential” during the coronavirus pandemic. Win McNamee/Getty.
