Pennsylvania Announces COVID-19 Hazard Pay Grant Program
On July 16, 2020, Pennsylvania Governor Tom Wolf announced the COVID-19 PA Hazard Pay Grant Program, which is meant to help employers provide hazard pay to employees in certain life-sustaining occupations during the ongoing COVID-19 pandemic. The Program, which is funded through the federal Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, will make available $50 million in reimbursable grants, which will be administered by the Commonwealth’s Department of Community and Economic Development (“DCED”).
What Businesses Are Eligible to Apply?
The following types of employers are eligible to apply for a grant under the Program: (1) businesses; (2) healthcare non-profits; (3) public transportation agencies; and (4) Certified Economic Development Organizations (“CEDOs”). In addition, such employers must be located in Pennsylvania and operate within one of the following eligible industries:
Healthcare and Social Assistance: Including nursing and residential care facilities, hospitals, and ambulatory health care services.
Food Manufacturing: Including animal food manufacturing, animal slaughtering and processing, dairy product manufacturing, fruit and vegetable preserving and specialty food manufacturing, bakers and tortilla manufacturing, “other food manufacturing,” grain and oilseed milling, sugar and confectionary product manufaturing, and seafood product preparation and manufacturing.
Food Retail Facilities: Including grocery stores, convenience stores, and specialty food stores.
Healthcare and Social Assistance: Including child day care services, individual and family services, vocational rehabilitation services, and community food and housing, and emergency and other relief services.
Janitorial Services to Buildings and Dwellings
Transit and Ground Passenger Transportation: Including urban transit systems, interurban and rural bus transportation, generalized freight trucking, and specialized freight trucking.
Security Services for Eligible Industries Listed Above and Commercial Industries That Were Not Closed As a Result of the Governor’s Business Closure Order
Importantly, applications will be prioritized by industry in the general order listed above.
How Must Funds Be Used?
Grant funds may be used for “hazard pay” — defined as additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19 — for direct, full-time, and part-time employees earning less than $20.00/hour, excluding fringe benefits and overtime. Applicants may apply for up to $1,200.00 per eligible full-time equivalent employee. Grant 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 as a $3.00/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 (i.e., a maximum of $600,000.00/location) and may not receive more than $3,000,000.00 under the program.
What Information Should Be Included In the Application?
To apply for funding, an employer must submit the online DCED Single Application for Assistance, which can be found here. In addition to the Single Application for Assistance, an employer should provide the following information when applying for a grant:
A project narrative including the following information: (a) industry category; (b) a brief description of the life-sustaining services the business applies to the public; (c) where the businesses is located and operates in the Commonwealth; (d) impact of COVID-19 on the business, including (i) changes to operations and hours; (ii) number of staff not working due to testing positive for COVID-19, caring for a family member with COVID-19, or staff not working due to lack of childcare; and (iii) whether the business is currently paying hazard pay.
The amount of the grant request.
A brief description of how the grant funds will be used to increase hazard pay, including: (a) the number of frontline full-time equivalent employees eligible for hazard pay; (b) job types of the frontline employees eligible for hazard pay under the program, including why these jobs must remain “front-line” and why any continued contact with the public is necessary; and (c) the hourly rate of employees, excluding fringe benefits.
All applications will be evaluated using the following criteria: (a) risk of exposure by industry; (b) location and prevalence of COVID-19; and (c) average hourly wage paid by the employer.
How Will Successful Applicants Access Funds?
Applications will be received between July 16, 2020 and July 31, 2020. Following approval of an application by DCED, a grant agreement will be issued to the applicant explaining the terms and conditions of the grant. Successful applicants may submit one payment request at the end of the eligible period seeking reimbursement for actual hazard pay expenditures by October 31, 2020. Supporting documentation will include a signed hazard pay report that includes the employee name, pay date, pay period covered, regular pay, hazard pay, and description of duties related to hazard pay along with supporting payroll showing proof of payment.
Employers that may qualify for the Program should review the Program Guidelines, which can be found here. Given the tight timeline for applying, employers that are interested in receiving a grant should apply as soon as possible. For questions about this or any other labor and employment topic, please don’t hesitate to contact the attorneys at Hoffman & Hlavac. To continue to stay updated on the key labor and employment law developments that affect your workplace, subscribe to our blog and follow us on social media.