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To the extent that an employer is required under the FLSA to make payments to an eligible worker in excess of $13 per hour or $25,000 in the aggregate over the period of performance, the employer must use a source of funding other than the Pandemic Recovery Funds to satisfy those obligations.
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A premium pay project may be eligible provided that the premium pay goes to eligible workers, the eligible workers are performing essential work, the pay is responsive, and the premium pay is no more than $13/hr in addition, does not exceed $25,000 during the period of performance which ends December 31, 2026, and does not merely reimburse previous premium pay already awarded. Please see below for additional information.
Public Employees OR
Critical Non-Public Sector Employees
Forced to Shoulder Substantial Risk as a Result of Pandemic
If by Virtue of Employment, Were Forced to Take on Additional Burdens and Make Great Personal Sacrifices as a Result of Pandemic
Examples- Health Care, Hospital, Home Care, Sanitation, Grocery/Restaurant, Pharmacy, Behavioral Health, Social Services, Mortuary, Laundry, Elections, Dental Care, Transportation, Hotel and Commercial Lodging, Nursing Homes, Farm Workers, Food Production, Janitors, Truck Drivers, Transit, Warehouse, Public Health and Safety, Childcare, Educators, School Staff, Human Services
Does Not Include Volunteers
Not Performed While Teleworking from a Residence AND
Involves Heightened Risks due to the Character of the Work During Pandemic
Regular, In-Person Interactions with Patients, the Public, or Coworkers of the Individual that is Performing the Work OR
Regular Physical Handling of Items that were Handled by, or are to be Handled by, Patients, the Public, or Coworkers of the Individual that is Performing the Work
Treasury does not define the term “regular” to maintain flexibility
Premium Pay is Responsive
Employee's Pay, including Premium Pay, is At or Below $96,525.00 OR
Employee is Not Exempt from FLSA Overtime Provisions OR
A brief, written narrative justification of how the premium pay or grant is responsive to workers performing essential work during the public health emergency. This could include a description of the essential workers’ duties, health or financial risks faced due to COVID-19, and why the recipient determined that the premium pay was responsive despite the workers’ higher income.
Up to $13/Hour in Addition AND
Not Exceed $25,000 per Employee During Period of Performance (until December 31, 2026) AND
Does Not Reimburse Previous Premium Pay but May be Retroactive (New Cash Outlay Required)
No. Premium pay may be awarded to salaried, non-salaried, and part-time workers.
Premium pay may be awarded to an eligible worker in addition to the overtime pay already earned by the eligible worker but in no instance may the portion of the compensation funded with the Pandemic Recovery Funds exceed $13 per hour, even if strict time-and-a-half calculation requires more.
Premium pay may be awarded monthly, quarterly, as a lump sum, etc., to eligible workers, provided that the total premium pay awarded to any eligible worker does not exceed $13 per hour or $25,000 over the period of performance (ends December 31, 2026).
FLSA is the Fair Labor Standards Act.
Wages and the Fair Labor Standards Act | U.S. Department of Labor (dol.gov)