Agency issues hazard pay out of own pocket

Marshall-based Passavant Memorial Homes Family of Services is picking up where a hazard pay program funded by the federal government fell short by upping the wages of most of its employees through October by $3 an hour.

Gov. Tom Wolf awarded grants on Monday to help employers temporarily increase wages for front-line workers in critical businesses. More than 5,000 outfits seeking $300 million were eligible, but only $50 million was available. In the end, 639 employers received awards and Passavant Homes, a nonprofit that provides services for people with intellectual and behavioral health issues, wasn’t among them.

Even though it lost out, the organization — which operates about 140 community residential homes — is digging into its own pockets to temporarily increase wages by $3 an hour for some 1,200 of its 1,700 employees Aug. 16 through Oct. 27, mirroring the federal funding program administered by the state Department of Community and Economic Development.

“Whether they got the grant or not, we decided they deserve to be rewarded,” Passavant Homes spokesman and Butler lawyer Tom King said.

The hazard pay funding — created through the federal Coronavirus Aid, Relief, and Economic Security Act — was earmarked for employees earning less than $20 per hour, excluding fringe benefits and overtime, for the 10-week period beginning Aug. 16. Employers could apply for up to $1,200 per eligible full-time equivalent employee, with a cap of 500 employees per location.

Mr. Wolf’s $50 million in awards will temporarily boost wages by $3 per hour for 41,587 workers in seven industries, including health care, which received the lion’s share at $31.75 million; food manufacturing, $3.6 million; and retail food, $4.09 million.

Health risk of the work in each of seven industry categories was among the factors considered by the state in making the awards.

The program isn’t without its own hazards.

With the temporary pay raise came worries whether the bump in wages will affect food stamp eligibility and health insurance subsidies, both of which are income dependent, said Rae Feracioly, manager at Cal’s General Store, a grocery and prepared foods market on Route 19 in Portersville.

The federal government subsidizes Affordable Care Act health insurance premiums for people who meet income guidelines. Many of the employees at Cal’s, which sells groceries and prepared foods, are lower income women who are trying to support their families, Ms. Feracioly said.

“We don’t understand if it’s taxed,” she said about the temporary wage increase. “You’re strapped, taking care of kids. A lot of our employees are afraid of losing benefits.”

Meanwhile, at Passavant Homes, the decision was made to institute the extra pay even without the government help.

“It is imperative that we advocate for every available resource to honor and recognize our dedicated staff during this challenging time,” Passavant Homes President and CEO Rick D. Senft said in a prepared statement.

More than 1,200 direct service professionals at the organization will earn a base wage ranging between $16.67 and $20.15 per hour, plus an additional $3 per hour worked during the 10-week period. A $2,500 sign-on bonus is offered for new direct support professionals and a $2,500 referral bonus for current employees who refer a candidate hired for the position.

Paying the bonuses will be a “significant expense to the organization,” according to the official statement.