Passavant Memorial Homes extends extra pay when state rejects bid for aid

Despite not receiving state aid for hazard pay for frontline workers, a McCandless-based nonprofit will give its employees at 140 community group homes across the region an extra $3 an hour until late October — an initiative that will cost the company about $2 million.

Passavant Memorial Homes Family of Services, which assists those with intellectual disabilities, autism and behavioral health needs, decided to help their direct support professionals by honoring the principle terms of the Covid-19 Pennsylvania Hazard Pay Grant Program and implement the temporary wage increase despite the “significant expense to the organization,” said CEO Rick Senft.

Passavant Memorial Homes did not expect the state Department of Community and Economic Development would approve its application for some of the $50 million in federal CARES Act funds that was distributed under the hazard pay grant program, said Thomas King III, an attorney for Passavant Memorial Homes.

Under that state program, businesses approved for the federal money have the opportunity to give to workers earning less than $20 per hour a temporary pay raise of up to $3 per hour.

“We really did not think we would get it. We’re too big,” King said of the 1,100 frontline employees who care for 350 residents. The temporary wage increase will raise the pay of those workers to between $16.67 and $20.15 per hour. The time frame for the wage hike will be the same as the state’s guidelines, from Aug. 16 to Oct. 24, King said.

Passavant Memorial Homes realizes the decision will include not only the $3-per-hour increase for regular hours worked but also compounded overtime pay and additional payroll taxes, among other related expenses. Costs will total an estimated $2 million, said Tom Meinert, a company spokesman.

“It is imperative that we advocate for every available resource to honor and recognize our dedicated staff during this challenging time,” Senft said.

There are health care facilities in the state that have been offering hazard pay to workers since the pandemic began, said Zach Shamberg, president of the Pennsylvania Health Care Association, a statewide trade group.

Passavant Memorial Homes is a nonprofit that is not affiliated with UMPC Passavant Hospital in McCandless, King noted.

The organization operates dozens of facilities in Allegheny and Westmoreland counties. Locations include Allison Park, Derry Township, Fox Chapel, Greensburg, Harmar, Harrison, Hempfield, Jeannette, the Irwin area, Latrobe, Lower Burrell, Monroeville, Mt. Pleasant Township, Murrysville, Penn Hills, Penn Township, Plum, Ross, Salem, Shaler, South Huntingdon, Tarentum and Unity.