COVID HAZARD PAY
COVID HAZARD PAY
Under 29 C.F.R. § 778.201, lump sum premiums, which are paid without regard to the number of hours worked, and premiums delineated in the Fair Labor Standards Act (FLSA) §§ 207(e)(5)-(7), are considered non-overtime premiums and must be included in employees’ regular rate upon which overtime rate is based.
During the Covid-19 pandemic, many employers paid essential workers additional payments for increased Covid-19 exposure, also known as Covid hazard pay. Covid hazard pay was most commonly disseminated to employees in health care, public safety, grocery stores, pharmacies, and food production. Covid hazard pay could fall under the category of lump sum premiums or premiums delineated in FLSA §§ 207. If so, it should be included in employees’ regular rate of pay upon which overtime rates are based.
The FLSA has a three-year statute of limitation for willful violations. Since Covid hazard payments were primarily distributed in 2020, employers’ window of liability for unpaid overtime hours is closing. If you believe your employer has improperly denied you overtime rates, you should seek legal counsel to analyze your potential claims.
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