Administrative Leave OK If Feds Gave It Too
Client Alert | 1 min read | 10.19.05
On October 11 DoD issued guidance (http://www.acq.osd.mil/dpap/policy/policyvault/2005-1405-DPAP.pdf) stating that the allowability of costs of paid administrative leave granted to contractor employees as a result of closures caused by Hurricane Katrina will be determined on a case-by-case basis, taking into consideration whether other businesses in the same geographical area were closed because of the hurricane and whether Federal employees in the same area received paid administrative leave. Although the guidance strongly encourages the negotiation of advance agreements regarding the allowability of other “unusual” costs incurred by contractors for the support of displaced employees, contracting officers are directed not to approve payments for Katrina-related costs pending the outcome of claims for such costs from insurance carriers.
Insights
Client Alert | 3 min read | 11.21.25
On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future.
Client Alert | 3 min read | 11.20.25
Client Alert | 3 min read | 11.20.25
Client Alert | 6 min read | 11.19.25
