Management staff and financial officers will benefit from reading this section to ensure that employees are compensated according to salary scales that are based on training and experience. The Head Start Act indicates that Early Head Start and Head Start staff shall not receive compensation at a rate which is in excess of the average rate of compensation paid in the area where the program is carried out.
Severance pay is allowable and should be determined according to established organizational policies applied without regard to the source of funds. It should be reasonable and should take into consideration the practice of similar types of organizations. Grantees will find this information useful when providing severance pay to their employees.