Labor Costs

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Force account Labor  Costs associated with conducting eligible work may  be claimed at an hourly rate. Labor rates can include actual wages paid plus  fringe benefits paid or credited to personnel. Different eligibility criteria  apply to labor rates for different kinds of employees and work. The  applicant’s pre-disaster written policies are used in determining cost  eligibility. For example, overtime or compensatory time for Fair Labor  Standards Act “exempt” employees is not eligible, except where written  policies provide for it, it is not subject to management’s discretion, and it  is not contingent on Federal funding or discretion. An applicant’s own  employees are known as force account labor.
   For permanent work performed by an applicant,  both regular time and overtime are eligible for all employees. Overtime may  be credited in actual wages or in compensatory time off.
   For emergency work, only overtime labor is  eligible for:
   †  Permanent  employees
   †  Reassigned  employees
   †  Seasonal  employees used during the season of anticipated employment
   Both regular time and overtime labor are  eligible for non-budgeted employees assigned specifically to perform  emergency work, including:
   †  Temporary  employees
   †  Essential  employees called back from administrative leave
   †  Permanent  employees funded from an external source such as grants The labor costs for  employees sent home or told not to report due to
   emergency conditions are not eligible. Salaries  of commissioners, mayors, department directors, police and fire chiefs, and  other administrators are usually not eligible.
   Refer to Donated  Resources, Fringe  Benefits, Reassigned  Employee, and Temporary  Employee for an explanation of appropriate  regulatory criteria and policy guidelines that must be adhered to when  claiming costs associated with these specific items.
   References:   Section 406 of the Stafford Act
   44 CFR §206.221(b) and §206.228(a)(2)
   Labor Costs – Emergency Work, FEMA Policy  9525.7, dated November 16, 2006
   Public Assistance Guide, FEMA 322, pages 42-47

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