Office of Head Start Limits Wage and Benefit Flexibility

Flexibilities authorized by the Office of Head Start (OHS) that allowed Head Start 
grantees to continue to pay employees unable to report to work because of COVID-19 
closures expired on September 30, 2020. OHS confirmed in its Questions and Answers on Wages and Benefits issued on September 29, 2020 that it is not extending the blanket flexibility on wages and benefits beyond September 30.

Instead, OHS directs Head Start grantees to make decisions about employee wages and benefits based on the basic cost considerations outlined in the Department of Health and Human Services’ codification of the Uniform Guidance, which dictate that costs must be “necessary and reasonable for the performance of the federal award...under the circumstances prevailing at the time the decision was made.” 45 C.F.R. §§ 75.403-404. Now, grantees must determine what activities are considered “working” and whether a specific scenario supports payment of wages and benefits during periods of limited operations or temporarily closures.

Working vs. Not Working

OHS encourages grantees to assess how the definitions of “working” and “not working” have changed and could change for employees as the delivery of Head Start services evolves due to the pandemic. For example, it recognizes that teachers who are now working remotely could have different work responsibilities due the realities of virtual learning. In addition, a program cook could now be working more as a food coordinator to link families with community food resources rather than cooking meals at a Head Start location.

Temporary Closures

OHS acknowledges that Head Start grantees may still need to temporarily close or limit operations in the coming months due to COVID-19. During short-term center closures, it may be reasonable to continue to pay wages and benefits to staff who are unable to work, if the costs associated with ending the employment relationship and being unable to recall qualified staff when needed outweigh the costs of maintaining wages and benefits. However, the longer a Head Start center remains closed and/or remote work continues, the harder it becomes to justify continuing to pay wages and benefits to employees who are unable to work. In such situations, OHS acknowledges that some positions may not need to be filled, and layoffs or separations from employment may be warranted.

CAAs with Head Start programs should assess staffing needs in light of present-day program delivery requirements, and plan for how to respond as circumstances related to the pandemic evolve. As the school year progresses, it will be important to be able to consistently determine and substantiate what wage and benefits costs are necessary and reasonable for the delivery of the Head Start program.

This News Flash is part of the Community Services Block Grant (CSBG) Legal Training and Technical Assistance (T/TA) Center. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0467-03-02. Any opinion, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.

The contents of this news flash are intended to convey general information only and do not constitute legal advice. Any communication through this publication or through CAPLAW’s website does not constitute or create an attorney-client relationship. If you need legal advice, please contact CAPLAW or another attorney directly.