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Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations 4387
<br /> Specifically,the recipient would be able employee not received a pay cut or been Effective Service Delivery:
<br /> to use SLFRF to fund payroll and furloughed would not be reasonably Administrative Expenses
<br /> covered benefits for up to 325 FTEs that proportional. The interim final rule provided that
<br /> begin their employment on or after Recipients may also provide premium funds could be used for: "Expenses to
<br /> March 3, 2021,for costs obligated by pay to certain employees, as detailed improve efficacy of public health or
<br /> December 31, 2024,and expended by further in section Premium Pay. economic relief programs:
<br /> December 31, 2026,consistent with the Administrative costs associated with the
<br /> Uniform Guidance's Cost Principles,as Avoiding layoffs.Funds may be used recipient's COVID-19 public health
<br /> long as SLFRF funds are used for to maintain current compensation p
<br /> levels,with adjustments for inflation,in emergency assistance programs,
<br /> additional FTEs hired over the including services responding to the
<br /> recipient's 750 FTE level(which is its order to prevent layoffs that would COVID-19 public health emergency or
<br /> March 3, 2021 budgeted FTE level). otherwise be necessary. Recipients must its negative economic impacts,that are
<br /> In hiring new employees,the final be able to substantiate that layoffs were not federally funded."In the final rule,
<br /> rule encourages recipients to ensure a likely in the absence of SLFRF funds Treasury is clarifying that there are
<br /> diverse workforce. The final rule also and would be substantially due to the several categories of eligible
<br /> prohibits recipients from using funds to public health emergency or its negative administrative expenses.
<br /> temporarily fill positions during a labor economic impacts (e.g.,fiscal pressures First,recipients may use funds for
<br /> dispute, as this would not constitute on state and local budgets)and should administrative costs to improve the
<br /> responding to the public health or document their assessment. efficacy of public health or economic
<br /> negative economic impacts of the Retaining workers.Funds may be relief programs through tools like
<br /> pandemic.Further,recipients must used to provide worker retention program evaluation, data analysis, and
<br /> ensure that its hiring practices do not 5 incentives,which are designed to targeted consumer outreach(see section
<br /> violate conflict-of-interest policies. persuade employees to remain with the Effective Service Delivery:Program
<br /> Total compensation for a hired employer as em l compared to other Evaluation,Data,and Outreach).
<br /> employee that is substantially in excess p p
<br /> of typical compensation for employees employment options.Recipients must Second,recipients may use funds for
<br /> of their experience and tenure within be able to substantiate that the administrative costs associated with
<br /> the recipient's government,without a employees were likely to leave programs to respond to the public
<br /> corresponding business case,may employment in the absence of the health emergency and its negative
<br /> retention incentive and should economic impacts,including programs
<br /> indicate a potential conflict-of-interest
<br /> in fact or appearance. document their assessment. For that are not funded by SLFRF or not
<br /> federally funded. In other words,
<br /> Providing additional funding for example,a recipient may determine that
<br /> Treasury recognizes that responding to
<br /> employees who experienced pay cuts a retention bonus is necessary based on
<br /> the public health and economic impacts
<br /> and furloughs.In recognition of the the presence of an alternative
<br /> economic hardship caused by pay cuts employment offer for an employee. of the pandemic requires many
<br /> programs and activities, some of which
<br /> and furloughs,additional funds may be All worker retention incentives must are not funded by SLFRF.Executing
<br /> provided to employees who experienced be narrowly tailored to need and should these programs effectively is a
<br /> pay cuts or were furloughed since the not exceed incentives traditionally component of responding to the public
<br /> onset of the pandemic on January 27, offered by the recipient or compensation health and negative economic impacts
<br /> 2020.Recipients must be able to that alternative employers may offer to of the pandemic.
<br /> substantiate that the pay cut or furlough compete for the employees. Further, Finally,recipients may use funds for
<br /> was substantially due to the public because retention incentives are direct and indirect administrative costs
<br /> health emergency or its negative intended to provide additional incentive for administering the SLFRF program
<br /> economic impacts (e.g.,fiscal pressures to remain with the employer,they must and projects funded by the SLFRF
<br /> on state and local budgets)and should be entirely additive to an employee's program. See section Administrative
<br /> document their assessment.As a
<br /> regular rate of wages and other Expenses in Program Administration
<br /> reminder,this additional funding must
<br /> remuneration and may not be used to Provisions for details on this eligible use
<br /> be reasonably proportional to the
<br /> reduce or substitute for an employee's category.
<br /> negative economic impact of the pay cut
<br /> or furlough on the employee,which normal earnings. Treasury will presume Effective Service Delivery:Program
<br /> would include taking into account that retention incentives that are less Evaluation,Data,and Outreach
<br /> unemployment insurance(UI)benefits than 25 percent of the rate of base pay
<br /> that a furloughed employee ma h for an individual employee or 10 The Supplementary Information of
<br /> gmay percent for group or category of the interim final rule provided that
<br /> received during the furloughed period. P g p g y state,local and Tribal governments may
<br /> Treasury presumes that additional funds employees are reasonably proportional use SLFRF funds to improve the design
<br /> beyond the difference in pay had the to the need to retain employees,as long and execution of programs responding
<br /> as the other requirements are met. to the COVID-19 pandemic and to
<br /> z45 As part of accepting the Award Terms and Ancillary administrative costs.Funds improve the efficacy of programs
<br /> Conditions for SLFRF,each recipient agreed to a
<br /> maintain a conflict-of-interest policy consistent may be used to pay for ancillary addressing negative economic impacts.
<br /> with 2 CFR 200.318(c)112 that is applicable to all administrative costs associated with The interim final rule included high-
<br /> activities funded with the SLFRF award.Pursuant administering SLFRF-funded hiring and level guidance about how SLFRF funds
<br /> to this policy,decisions concerning SLFRF must be retention programs detailed above, could be used in this eligible use
<br /> free of undisclosed personal or organizational
<br /> conflicts of interest,both in fact and in appearance. including costs to publish job postings, category, including the use of targeted
<br /> A recipient may not use control over SLFRF for review applications,and onboard and consumer outreach,improvements to
<br /> their own private gain.Furthermore,no employee, train new hires. For additional data or technology infrastructure,
<br /> officer,or agent may participate in the selection, information on administrative expenses, impact evaluations,and data analysis.
<br /> award,or administration of a contract supported by
<br /> a federal award if he or she has a real or apparent see section Administrative Expenses in Since the publication of the interim
<br /> conflict of interest. Program Administration Provisions. final rule,Treasury has also released
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