Skip to main content
California Department of Education Logo
California Department of Education
Official Letter
California Department of Education
Official Letter
February 16, 2021

Dear Executive Directors and Program Directors of Early Learning and Care Programs:

Hazardous Pay and Stipends for Employees funded with Early Learning and Care Contracts

Early Learning and Care contract funding terms and conditions require that all contractors adhere to all State and Federal Regulations. Federal Regulations require stipends to be a pre-approved expenditure. Given that pre-approval was not authorized, the contractors should not issue stipends to employees utilizing California Department of Education (CDE) contract funds. However, contractors may issue hazardous pay to employees, consistent with 2 Code of Federal Regulations (CFR) 200.430, if they have the funding to do so. Please note that hazardous pay applies to those directly employed by the contracting agency and does not apply to providers.

Federal Regulation 2 CFR 200.430 and subsequent guidance provided throughout the COVID-19 pandemic supports compensation and extra pay so long as the agency ensures that the compensation:

  • Is reasonable for the services rendered
  • Is paid pursuant to an agreement entered into in good faith between the agency and the employee
  • Conform to established written policies and procedures of the agency
  • Is consistent applied to both federal and non-federal activities

Contractors may develop written policies and procedures that include the beginning of the pandemic, if necessary, in order to comply with these regulations and issue hazard pay. As stated in the fourth bullet above, contractors cannot differentiate between the funding source of each employee for the purpose of determining hazardous pay for each employee. Meaning, if a contractor has two employees with substantially similar duties, and the employees are funded by two different income sources, the two employees must receive similar hazardous pay, regardless of the availability of funds within each income source.

Last Reviewed: Friday, July 14, 2023

Recently Posted in Allocations & Apportionments

  • Principal Apportionment Deadlines, FY 2024–25 (added 14-Jun-2024)
    Calendar of Principal Apportionment key deadlines for school district, county office of education, charter school, and SELPA data for fiscal year (FY) 2024–25.
  • LCAP Required Goals Lists Archive (added 12-Jun-2024)
    File archive for local educational agencies (LEAs) that have met the criteria to include specific goals in the Local Control and Accountability Plan (LCAP).
  • 2023 Low Performing Schools Non-ALL Record Layout (added 11-Jun-2024)
    Record layout for file that identifies the schools that have a red performance indicator for at least one of the 13 Non-ALL student group OR "very low" for the College/Career Indicator.
  • 2023 Low Performing LEAs Non-ALL Record Layout (added 11-Jun-2024)
    Record layout for file that identifies the local educational agencies (LEAs) that have a red performance indicator for at least one of the 13 Non-ALL student group OR "very low" for the College/Career Indicator.
  • Res-23: Prop 28 (added 06-Jun-2024)
    Funding results page for State Special School, Prop 28, for fiscal year 2023-24.

  • Instructions: Application for Funding (added 29-Apr-2024)
    Consolidated Application and Reporting System data entry instructions for the 2024–25 Application for Funding data collection form.
  • Instructions: Certification of Assurances (added 29-Apr-2024)
    Consolidated Application and Reporting System data entry instructions for the 2024–25 Certification of Assurances data collection form.
  • Instructions: Homeless Policy and Requirements (added 29-Apr-2024)
    Consolidated Application and Reporting System data entry instructions for the 2023–24 Homeless Education Policy, Requirements, and Implementation data collection form.
  • Instructions: LCAP Federal Addendum Certification (added 29-Apr-2024)
    Consolidated Application and Reporting System data entry instructions for the 2024–25 Local Control and Accountability Plan (LCAP) Federal Addendum Certification data collection form.
  • Instructions: Protected Prayer Certification (added 29-Apr-2024)
    Consolidated Application and Reporting System data entry instructions for the 2024–25 Protected Prayer Certification data collection form.