What is the rule regarding hazard pay for minimum wage earners?

The rule regarding hazard pay for minimum wage earners emphasizes that it is treated as supplementary compensation for the increased risk associated with certain jobs. Hazard pay is considered part of an employee's overall earnings and, therefore, is subject to income tax, similar to regular wages.

This treatment aligns with tax regulations, which state that all compensatory payments, including hazard pay, should be reported as income, making option C the correct choice. Understanding that hazard pay contributes to the overall income helps clarify why it is taxable, as income taxes are assessed on the total earnings an employee receives.

In contrast, other options do not accurately represent the taxation of hazard pay. For instance, hazard pay is not always exempt from taxes, nor is it correct to imply that it must be double the normal pay, as the amount of hazard pay can vary based on company policy or industry standards rather than being universally defined.