March 15 Tip of the Week

As we face the one-year anniversary of the COVID-19 pandemic officially being declared a national emergency in the United States, several local jurisdictions, particularly on the west coast, have passed mandates that require certain employers to provide their employees with hazard pay (or sometimes referred to as “hero pay”). Hazard pay is additional compensation for employees who perform hazardous duty or work involving physical hardship. Hazard pay has been historically linked to such dangerous jobs as military service and construction. Today, however, one of the greatest hazards to everyday life is a microscopic virus.

Most of the emerging local hazard pay ordinances are targeted at large-chain grocery stores, pharmacies, and food retailers and put an obligation on employers only for a limited time (related to the immediate emergency). Usually the hazard pay is in the range of an extra $4-5 per hour. While hazard pay ordinances are trending, they are still not the norm. There is no federal requirement under the Fair Labor Standards Act for private employers to provide hazard pay to their employees, and most essential workers throughout the United States still do not receive such compensation. Employers who do not operate in a jurisdiction or industry that mandates hazard pay are generally not obligated to provide their at-will employees with compensation beyond the applicable minimum wage.

If you have questions, myHRcounsel is here to help employers navigate this evolving area of law.