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COVID-19 Pennsylvania Hazard Pay Grant Program

Attention PA Businesses: Grant Deadline this Friday!

The COVID-19 PA Hazard Pay Grant Program was established to help employers provide hazard pay to employees in life-sustaining occupations during the pandemic. Hazard pay is intended to keep front-line employees working in vital sectors.

The program will help employers provide hazard pay in order to retain current employees. This reimbursement-based grant is for employers who will be offering hazard pay over the eligible program period. The deadline for grant applications is Friday, July 31, 2020. 

Eligible Applicants:

  • Businesses
  • Healthcare Non-Profits
  • Public Transportation Agency
  • Certified Economic Development Organization (CEDO)

Eligible Industries:

  • Nursing and Residential Care Facilities
  • Hospitals
  • Ambulatory Health Care Services
  • Food Manufacturing
  • Food Retail Facilities
  • Healthcare and Social Assistance
  • Janitorial Services to Buildings and Dwellings
  • Transit and Ground Passenger Transportation
  • Security Services for eligible industries listed above and commercial industries that were not closed as a result of the Governor’s Business Closure Order

Eligible Use of Funds:

Grant funds may be used for hazard pay for direct, full-time, and part-time employees earning less than $20 per hour (excludes fringe benefits and overtime). Funds may only be used to pay hazard pay for eligible employees for the 10-week period from August 16, 2020 through October 24, 2020.  Hazard pay must be a $3 per hour hazard pay increase to the regular rate of pay (in addition to any eligible overtime or other benefits).

Employees must be “front-line” employees facing the hazards of COVID-19 and have continued working through the Governor’s March 19, 2020 Business Closure Order.  Front line employees are all employees deemed necessary by the employer to report to work during the pandemic. Employees teleworking from home are not eligible for hazard pay under this program.


How to calculate your grant request amount:

  • Calculate the number of Full Time Equivalents (FTEs) over 10-week period.
  • FTEs are calculated as the total number of hours for which employees are compensated for employment over a projected 10-week period divided by 400. Hours worked in a week cannot exceed 40 hours for this calculation.
  • The number of FTEs multiplied by $1,200 to determine the maximum grant.
  • Maximum of 500 FTEs per location ($600,000 per location), $3,000,000 maximum funding for any employer.

Application Process:

Apply online at

The following information will be requested:

  • Industry category per list above
  • Brief description of life-sustaining services to business provides
  • Where business is located
  • Impact of COVID-19 on the business
    • Changes to business operations/hours open, adjustments to meet CDC and PA Dept of Health Guidelines, etc.
    • Number of staff not working due to testing positive for COVID-19, or lack of childcare, etc.
    • Whether a business is currently paying hazard pay
  • Amount of grant request
  • Brief description of how grant funds will be used to increase hazard pay
    • Number of employees eligible for hazard pay
    • Job types of front-line workers and why these are “front-line” positions
    • Hourly rate of employees
  • Applicants will need a Data Universal Number System (DUNS) number and be registered with the System for Award Management (SAM)

Applications will be accepted July 16, 2020 through July 31, 2020. Applications will be prioritized by industry in accordance with the Worker Exposure Risk to COVID-19 released by the Occupational Safety and Health Administration. DCED will review and approve applications. Grant payments will be made upon the applicant submitting payment request forms with required support documentation during the grant period. 

If you have any further questions, please reach out to your Client Relationship Manager (CRM).

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