Social Security Earnings Test Waived for Healthcare and First Responders Who Worked During the Pandemic

This bill, the Health Care Worker and First Responder Fairness Act, is pretty straightforward: it gives a break to essential workers who were collecting Social Security retirement benefits but had to jump back into the workforce during the COVID-19 pandemic. Specifically, it exempts the wages earned by health care professionals and first responders between January 31, 2020, and May 11, 2023, from the Social Security retirement earnings test.

The Social Security Earnings Test Explained

If you’re collecting Social Security retirement benefits before your full retirement age, there’s a limit on how much you can earn from working before the government starts temporarily withholding your benefits. This is the retirement earnings test. For example, if a retired nurse came back to the hospital in 2021 to help with the surge, her earnings might have caused her Social Security checks to be reduced or stopped under the current rules. This bill retroactively removes that penalty for those specific workers during the pandemic period, recognizing the critical need for their service during the crisis (Sec. 2).

To claim this exemption, the worker will need to attest to and provide evidence of their employment in one of these roles during that time. The Commissioner of Social Security is required to issue the specific procedures for this process within 30 days of the bill becoming law, so the relief should start rolling out quickly.

Preparing for the Next Crisis

Beyond the look back at the COVID-19 pandemic, the bill also sets up a mechanism for future public health emergencies. If the Secretary of Health and Human Services declares a public health emergency, the wages earned by eligible individuals—again, health care professionals and first responders—will also be excluded from the Social Security earnings test (Sec. 3). This is a smart move that removes a financial barrier for experienced professionals who might otherwise hesitate to return to the front lines during a crisis.

However, there’s a key difference for future emergencies: the exclusion only applies if the Commissioner of Social Security issues a waiver, which is tied to a determination that there is a shortage of healthcare workers during that emergency. This means the exclusion isn't automatic; it’s a tool the government can use specifically when they need to incentivize retired workers to fill critical gaps. The Commissioner will also have to report annually to Congress on every waiver issued under this section (Sec. 3).

Who Benefits, and What’s the Cost?

The primary beneficiaries are the thousands of retired health care professionals and first responders who answered the call during the pandemic while drawing early Social Security benefits. For them, this bill effectively means they get to keep the Social Security benefits that might have been withheld or reduced because they went back to work. For example, a retired EMT who worked throughout 2020 will now see those earnings disregarded, potentially resulting in a lump-sum payment of previously withheld benefits.

While this is clearly a benefit for essential workers, it does slightly reduce the income flowing into the Social Security Trust Funds because the excess earnings that would have been taxed or withheld are now exempt. However, this is generally considered a fair trade-off for recognizing and rewarding the service of these professionals during a national emergency. Overall, the bill is a targeted, practical solution that uses the Social Security system to support workforce stability during times of crisis.