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If an EPA grant recipient permits their employees administrative leave to comply with social distancing guidance from public officials, are the costs allowable?

There is a regulatory provision in 2 CFR 200.431 Compensation-fringe benefits governing administrative leave and other fringe benefits for recipient employees working on grant funded projects if administrative leave is necessary. Additional guidance for recipients on allocating fringe benefit costs is available in the “Fringe Benefits” section of EPA’s Interim General Budget Development Guidance for Applicants and Recipients of EPA Financial Assistance.  However, it may not be necessary to use administrative leave to compensate employees whose work on the financial assistance agreement has been interrupted due to the impact of COVID-19.  Recipients may continue to compensate these employees as long as the recipient also compensates employees whose salaries or benefits are funded from other sources.

Return to Frequent Questions about Grants and Coronavirus (COVID-19).