Commonwealth Opens Hazard Pay Grant Program for Employers of Frontline Workers 

Governor Tom Wolf announced the availability of $50 million in grant funding to help employers provide hazard pay to employees in life-sustaining occupations during the COVID-19 pandemic. Hazard pay is intended to keep front-line employees working in vital industry sectors across Pennsylvania.

“In the fight against COVID-19, our front-line workers have put themselves at risk every day in order to continue to provide life-sustaining services to their fellow Pennsylvanians, and this funding will increase their pay in recognition of those sacrifices,” said Gov. Wolf. “These grants will help businesses retain employees, ensure that Pennsylvanians keep working and avoid disruption of critical goods and services.”

Created through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, this reimbursement-based grant is available to employers offering hazard pay during the eligible program period and will be administered by the Department of Community and Economic Development (DCED). Businesses may apply for grants up to a maximum of $3 million.

The following applicants are eligible to apply:

• Businesses
• Healthcare Non-profits
• Public Transportation Agencies
• Certified Economic Development Organizations (CEDO)

Eligible Pennsylvania-based industries include:

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

Grant funds may be used for hazard pay for direct, full-time and part-time employees earning less than $20/hour, excluding fringe benefits and overtime for the 10-week period from August 16, 2020, to October 24, 2020. Applicants may apply for up to $1,200 per eligible full-time equivalent (FTE) employee. Employers may apply for a grant to provide hazard pay for up to 500 eligible full-time equivalent employees per location.

Eligible applicants may apply for grants using the online DCED Electronic Single Application for Assistance located at www.esa.dced.state.pa.us from July 16, 2020, to July 31, 2020. Program inquiries may be directed to (717) 787-6245 or [email protected].

Uptick in PA COVID-19 Cases Prompts New Bar and Restaurant Restrictions

Due to increases in COVID-19 cases in certain areas of Pennsylvania, particularly counties in the southwest portion of the Commonwealth, Governor Wolf and Secretary of Health Dr. Rachel Levine have signed new executive orders for targeted mitigation efforts.

The new statewide directives affect bars and restaurants, gatherings, and telework.

“During the past week, we have seen an unsettling climb in new COVID-19 cases,” Governor Wolf said on July 15. “When we hit our peak on April 9, we had nearly two thousand new cases that day with other days’ cases hovering around 1,000. Medical experts looking at the trajectory we are on now are projecting that this new surge could soon eclipse the April peak. With our rapid case increases we need to act again now.”

Businesses in the retail food services industry must restrict the sale of alcoholic beverages to table or booth service, as well as take-out service. Bar service is prohibited. Patrons who wish to consume alcohol on the premises must also purchase food.

Non-bar seating in outdoor areas is permitted. Indoor occupancy must be restricted to 25% of the maximum occupancy as determined by the fire code, including employees.

For other gatherings, indoor events of more than 25 people are prohibited. Outdoor events of more than 250 people are prohibited.

Regarding teleworking or working from home, all businesses are required to implement teleworking if possible. Where telework is not possible, businesses may conduct in-person operations and must comply with the business safety order, the worker safety order, and the masking order.

Gyms and fitness facilities are permitted to operate but must adhere to requirements for gatherings of people and masking. They are encouraged to prioritize outdoor fitness activities.

Over 90% of State's Eligible UC and PUA Claimants Have Received Benefits; FPUC Program Ending July 25

More than nine of every 10 eligible Pennsylvanians who filed for unemployment benefits between March 15 and June 13 have received payment, the Department of Labor & Industry reported.

Since March 15, the Commonwealth has distributed more than $28 billion in benefits to eligible claimants, including $10.9 billion in conventional Unemployment Compensation (UC), $13.3 billion in Federal Pandemic Unemployment Compensation (FPUC), $3.7 billion in Pandemic Unemployment Assistance (PUA), $162 million in extended benefits through Pandemic Emergency Unemployment Compensation (PEUC), and $2.6 million through Pennsylvania’s Extended Benefits program.

FPUC is the $600 per week payment that has been issued to each UC or PUA recipient, regardless of the amount of their underlying UC or PUA benefits. In accordance with the federal legislation that created FPUC, the program will end on July 25 and recipients will no longer receive $600 weekly payments. But they will continue to receive their UC or PUA payments as long as they have eligibility weeks remaining.

Since March 15, the Department has received almost 1.9 million new UC claims, with a peak weekly total of 374,056 from March 22 to 28. Weekly claims have not exceeded 45,261 since May 23.

Since April 18, when the PUA program began, the Department has received almost 1.3 million PUA claims, including a weekly high of 209,036 for the week ending July 11. The PUA program was created to compensate those who have lost personal income due to the COVID-19 pandemic and who are not eligible for traditional UC. They include self-employed, independent contractors, gig economy workers, and business owners.

June 2020 PA Jobs Update

Pennsylvania’s seasonally adjusted unemployment rate fell to 13.0% in June 2020, down 0.4% from 13.4% in May 2020 and 3.1% lower than its record high in the seasonally adjusted series of 16.1% in April 2020 (dates back to 1976). The national rate in June 2020 stood at 11.1%. This and the other changes to data noted in this update reflect the evolution of Pennsylvania’s employment situation through the coronavirus pandemic (please see the **footnote). Over the month, unemployment rolls fell by 52,818 individuals, with total unemployment decreasing to 821,257. However, it should be noted that estimates in the household survey for both unemployment and employment (see *footnote on following page) were again affected among states by misclassification from respondents in June 2020 (i.e. workers who should have been classified as unemployed on temporary layoff).

As of June 2020, Pennsylvania’s unemployment rate stood 8.3% higher than its level of 4.7% in February 2020, with total unemployment standing 512,229 above its total of 309,028 individuals in February 2020. For context, Pennsylvania’s unemployment rate had declined 0.7% over both of Governor Wolf’s terms as of February 2020, with total unemployment down by 35,408. State unemployment statistics for the month are as follows:

• Total Unemployment – 821,257
• Change Over Month –   DOWN   52,818
• Change Over 4 Months –   UP   512,229
• Change Over Year –   UP   546,046
• Change Over Gov. Wolf to Date –   UP   476,821
• Rate Change Over Month –   DOWN   0.4%
• Rate Change Over 4 Months –   UP   8.3%
• Rate Change Over Year –   UP   8.7%
• Rate Change Over Gov. Wolf to Date –   UP    7.6%

As indicated above, total unemployment’s rounded percentage of the labor force, or unemployment rate, fell over the month (rate = unemployment / labor force). The labor force is the number of employed individuals combined with the number of unemployed individuals actively searching for work. Labor force growth can be a sign of a strengthening economy from more people working and/or more individuals searching for jobs. However, from May to June 2020, PA’s labor force decreased by 174,167 individuals (the largest month-to-month decrease on record), a combination of total employment* falling by 121,349 and unemployment down by 52,818 as noted above. The decrease in June lowered the PA’s total labor force level to 6,328,368, its lowest level since May 2007.

As of June 2020, PA’s labor force is down by 230,051 individuals (unemployment +512,229 & employment -742,280) from its record high of 6,558,419 in February 2020. For context, PA’s labor force had grown by 159,267 individuals (unemployment -35,408 & employment +194,675) over both of Governor Wolf’s terms as of February 2020. State labor force statistics for the month are as follows: 

• Total Labor Force – 6,328,368
• Change Over Month –   DOWN   174,167
• Change Over 4 Months –   DOWN   230,051
• Change Over Year –   DOWN   137,170
• Change Over Gov. Wolf to Date –   DOWN   70,784

PA Non-farm* job rolls rebounded again in June 2020, growing by 231,500 over the month and by 439,900 over the prior two months, following a staggering loss of 1,116,500 over March and April 2020 (bringing non-farm employment in April 2020 to its lowest level on record in the seasonally adjusted series – dates back to 1990). As of June 2020, non-farm job rolls are down by 676,600 from a record high of 6,109,600 in February 2020 (please see the attached spreadsheet for comparison to other states for change in non-farm employment from Feb. 2020 – Jun. 2020). For context, non-farm employment had grown by 295,700 over both of Governor Wolf’s terms as of February 2020. State non-farm employment statistics for the month are as follows: 

• Total Non-Farm Employment – 5,433,000
• Change Over Month –   UP   231,500
• Change Over 4 Months –   DOWN   676,600
• Change Over Year –   DOWN   620,300
• Change Over Gov. Wolf to Date –    DOWN   380,900

*Total employment for labor force provided by U.S. Census Household survey. The separate BLS Establishment survey measures non-farm jobs only.
**Survey periods for data are as of the middle of the month, meaning changes occurring beyond this time are not captured for the month.

COVID-19 Employment Impact by State

(Feb.-June 2020; in Thousands; Source: USBLS)