Essential Pay for Essential Workers Act

To require employers to pay essential 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 Essential Pay for Essential Workers Act 2. Mandatory essential pay for health care employees during public health emergencies (a) Employer requirement During an emergency period, an employer of an essential employee shall pay the employee at a rate equal to the sum of the regular rate of pay of the employee and $15. (b) Enforcement A violation of subsection (a) shall be deemed a violation of section 7 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 206 29 U.S.C. 215 (c) Definitions In this Act: (1) FLSA terms The terms employer employ 29 U.S.C. 203 (2) Essential The term essential employee Advisory Memorandum on Identification of Essential Critical Infrastructure Workers During COVID–19 Response (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 essential 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 essential pay wages For purposes of this section, the term qualified essential 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: Essential Pay for Essential Workers Act This bill requires employers to pay essential health care employees a premium amount in addition to their regular rate of pay during an emergency period. It also allows employers a payroll tax credit for the payment of such enhanced wages to essential employees.