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COVID-19 Federal Assistance e311

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Premium & Hazard Pay

Can premium pay be offered as a one-time payment?

The Rule states that premium pay “must be entirely additive to a worker’s regular rate of wages and other remuneration, and may not be used to reduce or substitute for a worker’s normal earnings.”[1] Essential workers who have already earned premium pay for essential work performed during the COVID-19 public health emergency remain eligible for additional payments, and an essential worker may receive both retrospective premium pay for prior work as well as prospective premium pay for current or ongoing work.[2] While Treasury has not specifically addressed whether premium pay can be distributed in the form of a one-time payment, current guidelines do not indicate restrictions on such a payment.

Last Revised: May 24, 2021

[1] U.S. Department of Treasury Coronavirus State and Local Fiscal Recovery Funds, 31 CFR Part 35 RIN 1505-AC77, at 50, https://home.treasury.gov/system/files/136/FRF-Interim-Final-Rule.pdf.

[2] Id.