“The coronavirus (COVID-19) epidemic has caused hardship to many employers and employees and is likely to continue to do so in the near future. In response, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was passed by Congress on March 27, 2020. Federal government contractors with employees (or employees of subcontractors) who are unable to work because of COVID-19 should give careful attention to Section 3610 of the CARES Act, which allows government contractors to be reimbursed for the costs of paid leave where the employees in question could not work due to impacts of the crisis…”
“While further guidance from the Government is expected, including from agencies other than DoD, the information provided by these resources should help government contractors know what to expect with respect to the implementation of Section 3610…”What Costs May Be Reimbursed
“Section 3610 gives contracting officers the flexibility to use any ‘funds made available to the agency’ to reimburse contractors for COVID-19-related paid leave between January 31, 2020 and September 30, 2020. Contractors must prove that leave was provided to maintain a ‘ready state’ and to protect their employees in light of COVID-19. It also allows contracting officers to modify contracts to provide for reimbursement of allowable paid leave costs without securing any additional consideration from government contractors. Put simply, this means that contractors can be reimbursed, at the rates identified in their contracts, for up to 40 hours per week, per employee on qualified leave.”
“Despite this broad authority, Section 3610 has clear limitations…” Read the full article here.
Source: Federal Contractors May Seek Reimbursement for Paid Leave Under Section 3610 of the CARES Act – By Smith Anderson, April 22, 2020. JDSupra.
