I 
117TH CONGRESS 
1ST SESSION 
H. R. 738 
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. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2021 
Mrs. WATSON COLEMAN (for herself, Ms. NORTON, Mrs. HAYES, Ms. 
BARRAGA´N, Mr. CARSON, Mr. COHEN, Mr. LAWSON of Florida, and Mr. 
SAN NICOLAS) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Education and Labor, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To require employers to pay essential pay to health care 
employees during public health emergencies, and to pro-
vide a tax credit for the cost of such pay. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Essential Pay for Es-
sential Workers Act’’. 
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SEC. 2. MANDATORY ESSENTIAL PAY FOR HEALTH CARE 
EMPLOYEES DURING PUBLIC HEALTH EMER-
GENCIES. 
(a) EMPLOYER REQUIREMENT.—During an emer-
gency 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) and unpaid 
amounts shall be treated as unpaid overtime compensation 
for the purposes of sections 15 and 16 of such Act (29 
U.S.C. 215 and 216). 
(c) DEFINITIONS.—In this Act: 
(1) FLSA TERMS.—The terms ‘‘employer’’ and 
‘‘employ’’ have the meanings given the terms in sec-
tion 3 of the Fair Labor Standards Act of 1938 (29 
U.S.C. 203). 
(2) ESSENTIAL.—The term ‘‘essential em-
ployee’’ means an employee identified as an essential 
critical infrastructure worker in the memorandum 
entitled, ‘‘Advisory Memorandum on Identification 
of Essential Critical Infrastructure Workers During 
COVID–19 Response’’ issued by the Director of the 
Cybersecurity and Infrastructure Agency on March 
28, 2020, or a successor memorandum. 
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(3) EMERGENCY
PERIOD.—The term ‘‘emer-
gency period’’ has the meaning given such term in 
section 1135(g) of the Social Security Act. 
(4) REGULAR RATE.—The term ‘‘regular rate’’ 
has the meaning given the term in section 7 of the 
Fair Labor Standards Act of 1938 (29 U.S.C. 207). 
SEC. 3. PAYROLL CREDIT FOR CERTAIN MANDATORY ES-
SENTIAL 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) of the Internal Revenue Code of 1986 for 
each calendar quarter an amount equal to 100 percent of 
the qualified essential pay wages paid by such employer 
with respect to such calendar quarter. 
(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.— 
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(A) IN GENERAL.—If the amount of the 
credit under subsection (a) exceeds the limita-
tion 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 pur-
poses 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 pur-
poses of this section, the term ‘‘qualified essential pay 
wages’’ means wages (as defined in section 3121(a) of the 
Internal Revenue Code of 1986) paid by an employer 
which are required to be paid by reason of section 2. 
(d) SPECIAL RULES.— 
(1) DENIAL OF DOUBLE BENEFIT.—For pur-
poses 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. 
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(4) regulations or other guidance for recap-
turing the benefit of credits determined under this 
section in cases where there is a subsequent adjust-
ment to the credit determined under subsection (a); 
and 
(5) regulations or other guidance to ensure that 
the wages taken into account under this section con-
form with the wages required under section 2. 
(f) TRANSFERS TO FEDERAL OLD-AGE AND SUR-
VIVORS INSURANCE TRUST FUND.—There are hereby ap-
propriated to the Federal Old-Age and Survivors Insur-
ance Trust Fund and the Federal Disability Insurance 
Trust Fund established under section 201 of the Social 
Security Act (42 U.S.C. 401) amounts equal to the reduc-
tion in revenues to the Treasury by reason of this section 
(without regard to this subsection). Amounts appropriated 
by the preceding sentence shall be transferred from the 
general fund at such times and in such manner as to rep-
licate to the extent possible the transfers which would have 
occurred to such Trust Fund had this section not been 
enacted. 
Æ 
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