Pennsylvania Establishes COVID-19 PA Hazard Pay Grant Program

The Pennsylvania Department of Community and Economic Development (PA DCED) has established the COVID-19 PA Hazard Pay Grant Program to assist employers in providing hazard pay to their employees who serve in life-sustaining occupations during the COVID-19 outbreak.

The grant will reimburse eligible employers who provide hazard pay to their employees over the eligible period of the program. The goal of providing this hazard pay is to keep employees working in essential sectors such as healthcare, food manufacturing and transit, which are always vital to society but especially during the pandemic.


The COVID-19 PA Hazard Pay Grant Program is available for businesses, nonprofit organizations, public transportation agencies and certified economic development organizations that meet the following criteria:

  • The entity is located and operating within the state of Pennsylvania;
  • The entity falls within one of the following eligible industries:
    • Healthcare
    • Social assistance
    • Food manufacturing and food retail
    • Public transit
    • Janitorial services (corporate and residential)
    • Security services for any industry listed above, as well as commercial industries that were not required to close as part of Governor Wolf’s Business Closure Order

Program Details

The PA DCED has allocated $50,000,000 to the COVID-19 PA Hazard Pay Grant Program for eligible employers to provide hazard pay, or additional monetary compensation for employees who are performing hazardous or physically difficult work related to COVID-19.

The funding is intended to provide hazard pay for direct full-time and part-time employees who earn less than $20 per hour, not including fringe benefits or overtime pay, over a 10-week period starting August 16, 2020 and ending October 24, 2020.

Employers can apply for a maximum of $1,200 per eligible full-time equivalent (FTE) employee (10 weeks x 40 hours per week x $3 per hour), and for a maximum of 500 eligible FTE employees per location. The hazard pay must be paid to the employee over the 10-week period as a $3/hour hazard pay increase to their normal pay rate in order to be reimbursed.

No employer may receive more than $3,000,000 of funding through the program.

How to Apply

Applicants must be employers. Individuals are not eligible applicants for the COVID-19 PA Hazard Pay Grant Program.

Starting July 16, 2020, employers can apply for COVID-19 PA Hazard Pay Grant Program funding through the PA DCED’s Electronic Single Application (ESA) online. Applications must be received by July 31, 2020. For more information, visit

Disclaimer: This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our Firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

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