Straight-Time Labor Costs: Meeting FEMA's Reimbursement Criteria

FEMA reimburses applicants for eligible straight-time labor costs incurred during disaster response and recovery. Here's a breakdown of the key criteria for straight-time labor cost reimbursement:

Core Principles:

• Reasonable and Equitable: Costs must be fair and in line with the specific work performed.
• Non-Contingency Policy: The applicant's labor policy shouldn't require federal funding for straight-time pay.
• Uniform Application: The policy should apply consistently to all employees, regardless of a disaster declaration.
• Clear Activation Criteria: The policy should have objective criteria for determining when straight-time pay applies.

Hours Worked:

• Reasonableness and Necessity: The number of hours claimed must be justified based on:
  • Disaster severity
  • Need for extended work due to specific circumstances
  • Employee's role in response/recovery
  • Number of consecutive hours worked

Overall Goal:

FEMA aims to ensure:

• Justified Costs: Labor costs claimed are reasonable and necessary for the disaster work performed.
• Alignment with Requirements: Labor costs comply with FEMA's regulations.

By meeting these criteria, applicants can ensure their straight-time labor costs are eligible for reimbursement from FEMA.

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