Hazard Pay for the Frontlines During Health Emergencies Act

To require employers to pay hazard pay to health care employees during public health emergencies, and to provide a tax credit for the cost of such pay. 1. Short title This Act may be cited as the Hazard Pay for the Frontlines During Health Emergencies Act 2. Mandatory hazard pay for health care employees during public health emergencies (a) Employer requirement During an emergency period, an employer of a health care employee shall pay the employee at a rate not less than one and one-fourth times the regular rate at which the employee is employed. (b) Enforcement A violation of subsection (a) shall be treated as a violation of section 6 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 (c) Definitions In this Act: (1) FLSA terms The terms employer employ 29 U.S.C. 203 (2) Health care employee The term health care employee (3) Emergency period The term emergency period (4) Regular rate The term regular rate 29 U.S.C. 207 3. Payroll credit for certain mandatory hazard pay (a) In general In the case of an employer, there shall be allowed as a credit against the tax imposed by section 3111(a) (b) Limitations and refundability (1) Credit limited to certain employment taxes The credit allowed by subsection (a) with respect to any calendar quarter shall not exceed the tax imposed by section 3111(a) of such Code for such calendar quarter (reduced by any other credits allowed against such tax for such quarter) on the wages paid with respect to the employment of all employees of the employer. (2) Refundability of excess credit (A) In general If the amount of the credit under subsection (a) exceeds the limitation of paragraph (1) for any calendar quarter, such excess shall be treated as an overpayment that shall be refunded under sections 6402(a) and 6413(b) of such Code. (B) Treatment of payments For purposes of section 1324 of title 31, United States Code, any amounts due to an employer under this paragraph shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. (c) Qualified hazard pay wages For purposes of this section, the term qualified hazard pay wages section 3121(a) (d) Special rules (1) Denial of double benefit For purposes of chapter 1 of such Code, the gross income of the employer, for the taxable year which includes the last day of any calendar quarter with respect to which a credit is allowed under this section, shall be increased by the amount of such credit. (2) Election not to have section apply This section shall not apply with respect to any employer for any calendar quarter if such employer elects (at such time and in such manner as the Secretary of the Treasury (or the Secretary’s delegate) may prescribe) not to have this section apply. (3) Certain terms Any term used in this section which is also used in chapter 21 of such Code shall have the same meaning as when used in such chapter. (e) Regulations The Secretary of the Treasury (or the Secretary’s delegate) shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including— (1) regulations or other guidance to prevent the avoidance of the purposes of the limitations under this section; (2) regulations or other guidance to minimize compliance and record-keeping burdens under this section; (3) regulations or other guidance providing for waiver of penalties for failure to deposit amounts in anticipation of the allowance of the credit allowed under this section; (4) regulations or other guidance for recapturing the benefit of credits determined under this section in cases where there is a subsequent adjustment to the credit determined under subsection (a); and (5) regulations or other guidance to ensure that the wages taken into account under this section conform with the wages required under section 2. (f) Transfers to Federal Old-Age and Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401

Summary: Hazard Pay for the Frontlines During Health Emergencies Act This bill requires employers to pay specified health care workers 125% percent of such workers’ regular rate of pay during a federal public-health emergency. Generally, health care workers who provide direct and essential services are eligible for such hazard pay. Workers not eligible for such pay include, among others, dentists, optometrists, physical therapists, and other therapists and related technicians. Employers receive a payroll tax credit for up to 100% of the hazard wages paid each calendar quarter under this bill.