On April 29, 2022, Minnesota Governor Tim Walz signed S.F. No. 2677 (2022) into law. This law authorizes bonus payments to Minnesotans who worked in frontline sectors during the COVID-19 peacetime emergency. This so-called “Hero Pay” law aims to thank eligible frontline workers for their sacrifices and hard work during the pandemic, when their work put them at risk of contracting COVID-19.
As of June 8, 2022, Minnesota frontline workers can apply for Frontline Worker Pay online here. The application for frontline pay will be open for 45 days, through July 22, 2022. Eligible applicants can apply any time during the 45-day application period. If an application is denied, applicants will have 15 days from the notice of the denial to appeal the denial. After the 45-day application period, the 15-day appeals period, and the appeals review period, all the money allocated to the Frontline Worker Pay Program will be split among approved applicants.
Beginning June 8, 2022, employers in the identified frontline sectors (defined below) will have 15 days to advise all current workers who may be eligible for Frontline Worker Pay that they may have assistance available to them and how to apply for benefits. Employers must provide this notice by June 23, 2022 and can find a notice meeting the law’s requirements at Frontline Worker Pay employer notice. The same notice, translated into Spanish, Hmong, and Somali, is available here.
Employers must provide notice using the same means the employer uses to provide other work-related notices to employees. The notice must be at least as conspicuous as:
An employer is not required to provide documentation or other verification for an employee’s frontline pay application to be processed. The application will require the worker to certify that they meet all eligibility requirements and provide necessary information for verification. The applicant will also be asked to provide authorization for the state to reach out to their current or former employer for purposes of eligibility verification if that is deemed necessary during application review.
The law specifically identifies 15 “frontline sectors” including the below, which are detailed in the MDLI Fact Sheet: Frontline Sector Guidance (also available here):
Eligible applicants can apply online for Frontline Worker Pay. To be eligible, the applicant:
Applicants must be prepared to certify that they meet the above eligibility requirements, and will be required to provide the following information:
Frontline worker payments will not be considered taxable income on 2022 state tax returns. However, the payments will be included in federal adjusted gross income for federal tax purposes.
Key Takeaways for Minnesota Employers
Given the new law, employers with operations in Minnesota should consider promptly taking several steps, including:
1 The Frontline Worker Pay Program applies to only employees in the frontline sector. Independent contractors and sole proprietors are not employees, and therefore, are not eligible for the program.
2 Workers with direct COVID-10 patient care responsibilities are workers who provided direct care as part of their job duties to individuals diagnosed with COVID-19.
Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.