ARPA Premium Pay Program

Premium Pay Program was instituted to compensate eligible City of Lowell municipal employees who worked in public-facing position during the pandemic. 

On March 10, 2020, The Commonwealth of Massachusetts Governor Charlie Baker declared a state of emergency due to the COVID-19 pandemic, with ensuing temporary closures of non-essential businesses and Massachusetts Department of Health stay-at-home advisories.  This state of emergency was in place until June 15th, 2021 (roughly 15 months). 

According to the US Treasury’s ‘Final Rule’ a portion of funding within the Coronavirus State and Local Fiscal Recovery Fund (also known as the American Rescue Plan Act or “ARPA”) may be used to provide premium pay to eligible workers that performed ‘Eligible Work’ during the pandemic. ‘Premium Pay’ may be awarded to eligible workers at a rate up to $13 per hour.  ‘Premium Pay’ is to be provided in addition to wages or other compensation that an eligible worker otherwise received. Premium pay may not exceed $25,000 for any single worker during the program. 

On January 4, 2023, the Lowell City Council unanimously voted to offer expanded Premium Pay using ARPA funds for eligible employees.  

The US Treasury’s ‘Final Rule’ described Eligible Work as: (1) Work that is not performed while teleworking from a residence; and (2) Involves: (i) Regular in-person interactions with patients, the public, or coworkers of the individual that is performing the work; and/or (ii) Regular physical handling of items/materials that were handled by, or are to be handled by patients, the public, or coworkers of the individual that is performing the work. 

Eligibility/ Guidelines  

The City of Lowell’s Premium Pay program will only issue payment in accordance with the US Treasury’s ‘Final Rule’, and only to City of Lowell employees that worked, full-time, in-person, and between the dates of March 10, 2020, and June 15, 2021. This is an internal determination by the City Administration and shall henceforth be referred to as the “ELIGIBILITY PERIOD”.   

The maximum payout for the ELIGIBILITY PERIOD is $2,505.00.  To be eligible an employee must have worked full-time and in-person for the City of Lowell during the ELIGIBILITY PERIOD.   Employees who worked a portion of the ELIGIBILITY PERIOD will be eligible for a pro-rated share of the total maximum payout, based on their time actually worked. 

To date, the City has paid out more than $1.7 million in Premium Pay to municipal employees.