Possible Federal Contractor Reimbursement for Keeping Employees in a “Ready State” During the COVID-19 Shutdown
Bass Berry & Sims – Section 3606 of the CARES Act authorizes agencies to pay contractors to keep their employees on staff and ready to perform. That section allows agencies to modify a contract or other agreement “without consideration” to reimburse contractors for any paid leave, including sick leave, in order “to keep its employees or subcontractors in a ready state” through September 30, 2020.
