Show All Answers

1. What should be considered when submitting a Premium Pay Project?

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.

Eligible Workers

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

Essential Work

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

Written Justification

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. 

Premium Pay

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)

2. Can premium pay be awarded to volunteers?

No. Premium pay may be awarded to salaried, non-salaried, and part-time workers.

3. Can premium pay be awarded in addition to overtime pay already earned?

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.

4. How is premium pay awarded?

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).

5. What is FLSA?

FLSA is the Fair Labor Standards Act.

Wages and the Fair Labor Standards Act | U.S. Department of Labor (dol.gov)

6. What if FLSA requires employees to be paid in excess of premium pay requirements?

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.