Child Care-Employer Partnerships

Introduction

The COVID-19 pandemic brought to the forefront the long-standing reality that the child care industry is vital for our country’s workforce and overall competitiveness. Without affordable, accessible childcare options, qualified workers who are parents and caregivers cannot take on work, leaving positions unfilled. Ensuring that businesses can remain competitive will require a strong child care market for employees to rely on.

An innovative way to stabilize child care businesses is through partnerships with area businesses. These mutually beneficial relationships can support child care businesses by providing reliable, constant revenue through steady enrollment and benefit the partnering business through employee retention with dependable child care services.

Businesses that seek to offer child care benefits to their staff can partner with an existing child care provider in their community to secure child care for their employees’ dependents, helping to retain and attract staff, improve morale, and boost productivity.

Developing these partnerships takes time and effort to cultivate and develop. This tool will outline for child care businesses and employers what’s needed to form a partnership and how to locate an employer as a potential partner.

What does it mean for a child care provider to be in a partnership with an employer?

A partnership between an employer and a child care provider can take many forms and can be crafted to meet the needs of both your child care business and the employer’s business and employees.

For instance, if a business provides financial assistance and resources for their employees to find or afford child care, this arrangement is often called “employer-sponsored child care” because the employer is sponsoring care for their employees’ children. However, this might not necessarily result in a formal partnership with a local child care provider.

A formal partnership means that your child care business has contracted with the employer to serve only children of their employees, or the program is allocating or reserving a certain number of their slots for those employees’ children. The child care provider and the employer might work together to set program hours so child care is available during the shifts that the employees work. Or an agreement could be made between your program and an employer that their employees would be referred to you when they need child care, which could help boost enrollment in your program.

Child care programs can offer services on or near an employer’s campus or off-site at their own facility, depending on the situation. Usually, when an employer partners with your child care business, you as the child care provider would hire and train staff and take care of all aspects of your business.

When pursuing formal partnerships with another business to provide child care services, be sure you have a written and signed agreement detailing the responsibilities and expectations of each party. More details about what should be included in this agreement are below.

Why should child care providers consider a formal partnership agreement with a business?

A formal partnership can have many benefits to your child care business. Your enrollment might become more stable, meaning you could count on more reliable and constant income, because a local business is sending their families to you. This could save you time on outreach and marketing. You may become a trusted resource for that business and word of mouth could lead to additional partnerships in the future. You may be able to match the business’ hours of operation, and possibly even be closed on holidays or during times the families are not at work. Think about the long-term impacts of this partnership and what it could mean for your business in years to come.

Example

Selena owns a small family child care home and has been struggling to reach full enrollment. A parent of one of the children in her care works at a small business with 10 employees down the street. This parent has been thrilled with the option to have her child so close to her place of employment.

Selena learned about employer-provider partnerships and how they can support her business. She decided to call the nearby employer to see if they would be interested in engaging in a partnership.

She told the employer that if they would be willing to let employees know about her business nearby, Selena would be happy to offer priority spots on her waitlist.

The employer was so excited about this opportunity, that they also agreed to pay a portion of their employee’s child care costs so that employees could receive nearby child care at a discounted rate.

Selena now benefits from having a steady stream of enrolled families and built-in advertisement of services through this partnership, stabilizing her child care business.

What is the incentive for employers?

When considering a business partnership, it is important to understand and communicate the benefits this will have for the employer. First, employers who offer child care benefits to their employees report increased employee retention and loyalty, improved productivity, and a better workplace environment. All of this leads to reduced expenses in employee absences and turnover and higher profits due to increased productivity.

Further, businesses may be eligible to receive a tax break if they invest in care for their employees. The Employer-Provided Child Care Facilities and Service credit offers a refund of up to 25% of child care expenses at tax season plus 10% of research and referral expenses, with a maximum annual credit of $150,000. Employers who partner with you may be eligible to claim this credit for expenses that their company incurs to provide child care services to their employees, either on-site or in contract with your child care business, as well as for the expenses they incur to help them find child care.

Example

Megan, the owner of several businesses, has been experiencing difficulty with hiring new staff, with many applicants stating that they wished they could accept a job offer, but can’t without access to child care in the area.

Megan learned about employer-child care partnerships and approached a nearby child care business to tell them the story of prospective employees that had to turn down jobs due to a lack of child care in the area.

The child care business agreed to enter into a partnership with Megan’s businesses. The child care business would reserve a number of openings for children of Megan’s employees and in return, Megan would provide financial support.

By having reserved child care placement at a nearby, well-respected program, Megan now has an additional incentive for working families to accept employment at her businesses.

How do I launch a program?

First, decide what type of benefit you will offer. For instance, will you provide on-site child care, or will you contract to reserve spaces in your program? How many employees need child care and how many would use this benefit? Is there an existing business nearby you could work with, or do you need to start conducting outreach?

Will you be offering financial assistance to help your employees afford child care, or any other benefits? What other decision-makers within your company do you need to involve in this process? Getting answers to these questions will be crucial first steps.

How do I develop a Child Care-Employer Partnership Service Agreement?

When entering an Employer-Child Care Partnership, both you and the employers must discuss and agree upon which entity will take on which responsibilities and what the expectations are for both parties.

Here are some key pieces of information that a valid agreement might include:

● The names of the employer or employers;

● The details of the child care business providing services, including hours, ages served, and other details of the program;

● The location, including relation to employer's location (such as on-site, near-site, or in the community);

● The projected number of families and/or children the employer has identified who are in need of child care;

● If the employer will financially support the partnership (you will be eligible even if there is no direct financial support); and

● The start and end date of the agreement.

Employers may decide that they want to pay a portion of their staff’s child care costs directly to your child care business. If that is the case, that will need to be explained in the agreement. Alternatively, employers may opt to promote your child care business to employees without financially supporting the cost of services.

There are many other questions and considerations that should be discussed and mutually agreed upon by all involved parties. Once these decisions have been made, you can add lists of responsibilities within the Service Agreement template.

We have included two Sample Service Agreement templates below. These templates are intended to be used as a sample and as a starting point. We strongly recommend that you connect with your business insurance representatives and legal representatives as you draft and before you sign this service agreement or any significant business contract. The individuals and entities who sign the contracts accept responsibility for the agreements made therein.

What to Discuss in Planning Your Child Care-Employer Partnership

● Nature of the Partnership

Will the program operate at a facility operated by the employer (on-site) or at a facility operated by the child care business (off-site)?
Will the business directly pay tuition, for reserved spots, or for other expenses? If so, how much will be paid, and how frequently?
Who will be responsible for collecting the remaining tuition? If the employer collects tuition as a payroll deduction, for instance, how will this be transferred to the provider?

● Location

Is the location a new child care program, or existing? Will renovations be needed? How long will they take? What will be the address and exact location (including, if applicable, building name, wing, or room number) of the child care program?

● Slots and Children Served

What ages will the child care program serve?
How many children can the program serve?
How many slots are currently available for the partnership, and how many are already filled?
Will additional slots be reserved for staff if they open up? What happens if there is a waitlist for employees’ children?

● Program Schedule

What are the program hours? What days/times during the year is the program closed or will be closed? Does this match the hours of the employer?

● Demand

Has the employer assessed whether their current employees would enroll children in this program? How many families/children might enroll as soon as this partnership begins? How many families/children are interested in enrolling next year? Are there more or less slots available than this assessed demand?

● Responsibility for Premises

Which party is responsible for:
- Ownership or lease of the space?
- Maintaining the facility’s interior? (For example, who is responsible for fixing a leak in the ceiling or a floorboard that has come loose?)
- (If applicable) Maintaining “studs out,” meaning the facility’s exterior and grounds? (For example, who is responsible for mowing the grass? Who is responsible for ensuring that the path families take to enter the child care program from outside the building is well-maintained and unobstructed? If a private space is rented, this might be the renter’s landlord’s responsibility.)

● Responsibility for Employment

Which party will be the employer of the hired child care staff, responsible for paying wages?

● Responsibility for Liability

Liability Insurance: The child care provider must hold liability insurance for their program. If operating as its own business, the child care program should have its own business liability insurance covering the workforce child care space.
Business Property Insurance: If a child care program is operating within the employer’s facility, then both the child care program and the employer have business property in the space. Each party should consider business property insurance that fully covers their respective items. Each party should mention that their business property insurance only covers the items owned by the respective party. (For example, in an employer allocates a space on their campus for a child care program and does not offer material supplies to the child care program, the business property for the employer is the structural room, whereas the business property for the child care program is all the materials and supplies within that room, excluding the structure.)
Business Liability insurance/General Liability Insurance: The party that owns and leases the space should hold business liability insurance. If a child care program is operating within an employer’s facility, it is recommended that the child care program hold the business liability insurance.
Certificate of Insurance: If an employer chooses to directly hire child care providers as employees of their business, and those child care providers work at a site operated and insured by the child care business, then the employer should ask their insurer to issue a Certificate of Insurance covering that employee for their activities at the off-site location.

● Child Care Program Policies and Procedures

Does the employer want to review the policies and procedures in place by the child care business?
Does the employer want to approve the policies and procedures in place by the child care business?
Is there a shared desire for the employer and the child care business to review and discuss the child care program’s policies and procedures on an annual basis?

● Primary Contacts

Identify primary contacts from both parties and their contact information. This doesn’t have to be included in the contract but should be agreed upon and shared. Primary contacts could include:
Contract negotiation, amendment, and approval
Basic, day-to-day communication (For example, a member of HR and a point person from the child care program)
Accounting/Payroll
(If applicable) Facilities/Maintenance

Frequently Asked Questions

What happens if you want the employer partnership agreement to end or if there is a change in leadership?

Include in your agreement how to exit the agreement with an employer. Be sure to include steps the employer needs to take and steps you need to take as the provider. By outlining these steps in your agreement, you will have a guide to follow when the time comes to end the agreement. Things to consider are the length of notice each party is expected to provide the other, how to notify the families who are utilizing the partnership agreement, and what impact the ending of a partnership agreement will have on the partnering business, your child care program, and families.

Also, consider including how to revisit the agreement when there is a change in leadership, either with the business or with the child care program. Having a process with a timeline on how to review and honor the business child care partnership will help both businesses support their employees and children by providing consistent, reliable child care.

If you engage in an employer partnership, does the employer control the child care business?

No, in this employer child care partnership the child care business retains its autonomy, meaning the child care business is its own business with its own policies, procedures, and practices. In employer-child care partnerships, each business comes together to partner to support the success of the other business. In instances where an employer directly employs a child care provider to provide child care services to its employees, then the business could have the decision-making capability that would impact how the child care business is operating.

How are disputes handled and who has the final decision-making capability?

Employers and child care providers need to establish clear guidelines and procedures for dispute resolution in their partnership agreement. The specific process can vary but outlining how disputes are handled will provide a guide for the employer and you if, or when, an issue occurs. Here are some steps to consider including in this process:

Communication: The first step is to encourage open and honest communication between the employer and the child care provider. Both parties should express their concerns, expectations, and any issues they are facing related to the partnership.
Mediation: If direct communication does not resolve the dispute, mediation can be explored. A neutral third party can facilitate a discussion between the employer and the child care provider to find a mutually acceptable resolution.
Legal Advice: In situations where the dispute remains unresolved or involves complex legal issues, seeking legal advice may be necessary.

By having a well-defined process in place, both parties can navigate disputes more effectively and maintain a positive working relationship.

What types of businesses and providers can benefit?

Types of businesses that could benefit from this partnership:

● Hospitals, skilled care facilities, and medical complexes

● Universities or school districts

● Manufacturing and factories

● Other companies with a lot of staff in one location

● Groups of companies located in shopping plazas or grouped close to each other

● Businesses with limited care options (such as in rural or agricultural areas)

● Companies with high turnover (hospitality, retail)

Types of child care providers that could benefit from this partnership:

● Home-based family child care providers

● Small child care centers

● Large child care centers

● Multi-site child care centers

Sample Service Agreement 1

For child care programs opening within an employer’s space

The Service Agreement (“Agreement”) is made and entered into on September 1, 2022 (“Effective Date”) by and between State Suppliers, (“STS”), a corporation with principal offices located at 12345 Main Street, Town, State 99999, and Southwest Child Care (“Provider”), a state corporation with principal offices located at 6789 South Street, Town, State 99999. STS and Provider shall hereinafter be referred to as “Parties,” and, individually, a “Party.”

Whereas STS seeks to offer a child care program for their employees;

Whereas Provider offers the capabilities, expertise, and resources to provide a child care program;

Therefore, STS and Provider enter into this Agreement as follows.

I Child Care Program

A. Provider shall offer child care services (“Services”) for the dependent children of STS employees at Program Address Site, Town, State, 99999. The operations of the “Services” at this location shall hereinafter be referred to as the “Program Site.”

B. The Program Site’s operating schedule will be every STS business day between the hours of 8:00 AM and 5:00 PM.

a. STS will share the annual holiday schedule at the start of this Agreement and by December 1 for forthcoming years.

C. All eighteen (18) slots in this child care program are reserved for STS employees.

D. The child care program will serve children between the ages of eighteen months and five years during the school year. In the summertime, the program will serve children aged two to twelve.

II. Space

A. STS shall reserve and maintain the 1500 square foot space of Room 1089 for use of the on-site child care program.

B. STS will ensure, to the best of its knowledge and to the standard upheld of the rest of its building space, that the space and its walkways and entrances are safe and well-maintained.

C. Provider shall promptly notify STS of any minor repairs or maintenance needed in the space. Provider is liable for failure to notify STS of urgent maintenance needs which could pose a health and safety hazard.

D. Any minor repairs and maintenance needed in the space will be addressed by STS following standard facilities/maintenance procedures.

III. Professional Services

A. Provider shall hire, employ, pay, and supervise qualified staff to meet the needs of the child care program.

B. Provider shall have the sole authority to hire and fire employees of the Program providing Services under this Agreement.

C. Provider’s employees shall remain solely employees of the Provider at all times, subject to the Provider’s employment terms and conditions.

D. Provider is solely responsible for reporting, withholding, and paying any and all employment taxes due to the proper taxing authorities with respect to Program Site staff.

E. STS shall not provide workers’ compensation, disability insurance, Social Security, or unemployment compensation coverage or any other statutory benefits to Program Site staff.

F. No Program Site staff shall be eligible to participate in any of STS’s employment benefit plans or similar arrangements.

IV. Enrollment Periods

A. There will be two formal enrollment periods each year.

1. The Winter/Spring session will begin on January 2 and end on Local Elementary’s last day of the school year.

2. The Fall session will begin on the Local Elementary’s first day of the school year and end on Local Elementary’s last day of school before winter break.

B. STS will facilitate the lottery for enrollment three (3) months prior to the start of the enrollment period.

1. If there is more interest than slots, first-time enrolled families must commit to enrolling their child for the entire session.

2. Enrolled families will be given the option to re-enroll without re-entering the lottery.

C. Enrollment will occur week by week in the summer months.

1. Enrolled families must share their child/ren’s participation schedule two months in advance.

2. Enrolled families can choose to opt out of summer care and still receive priority enrollment for the Fall session.

3. Other families must express interest in opting in for summer care two months in advance.

4. The HR Coordinator will collect interest from unenrolled families for summer care and share the information with the Provider two months in advance.

5. Provider is ultimately responsible for managing enrollment with the summer schedule.

6. During the summer session, Provider has no obligation to provide care if three (3) or fewer children are enrolled in a given week. In this case, Provider must notify STS and enrolled families at least four (4) weeks in advance.

V. Tuition Payment

A. As a convenience for employees, STS will automatically enroll employees in a paycheck deduction program for the weekly cost of their child/ren’s tuition. Employees may opt out of this automatic enrollment if they choose.

B. The paycheck deduction program will run during the Winter/Spring and Fall sessions. The paycheck deduction program will not run during summer enrollment.

C. STS will send a check to the Provider with amounts due on a biweekly basis.

D. Provider is ultimately held responsible collecting and receiving all tuition payments from enrolled families.

E. If Provider has not received sufficient tuition payment from families:

1. Within two consecutive weeks: Provider will issue a written warning to the family.

2. Within three consecutive weeks or for three weeks within a two-month period: Provider must issue a written warning to the family via email with a copy to the Human Resources Coordinator. The HR Coordinator will meet with the employee to discuss options and potential termination of the benefit.

3. Family enrollment will be considered returned to good standing once all overdue tuition has been received.

4. Provider reserves the right to terminate enrollment of families who have outstanding balances of four weeks of unpaid tuition for one enrolled child.

VI. Waiting list

A. STS will maintain a list of employees interested in enrolling children in the Program Site. All STS employees are eligible to enroll children in their care at the Program Site.

B. If there is more interest than can be accommodated by the number of slots available:

1. Preference first be given to the employees who seek to enroll dependent children at the Program Site

2. To fill the remaining slots, a random lottery drawing will occur.

3. STS will maintain a waiting list.

C. If a slot opens at the Program Site, the Provider shall notify STS as soon as possible so that another STS employee can fill the slot.

VII. Insurance

A. Provider shall, at all times during the Agreement, carry insurance in such form and in such amounts that STS may from time to time reasonably require against insurable hazards and casualties that are commonly insured against in the performance of similar services to those provided by Provider under this Agreement, including general liability insurance and business property insurance. Upon request of STS, policies providing such coverage shall name STS as an additional insured with respect to Provider’s performance of its obligations under this Agreement.

B. STS shall, at all times during the Agreement, carry insurance in such form and in such amounts that Provider may from time to time reasonably require against insurable hazards and casualties that are commonly insured against in the performance of similar services to those provided by Provider under this Agreement, including general liability insurance and business property insurance.

VIII. Term & Termination

A. Term.

1. This Agreement shall have an initial term of two (2) years commencing on the Effective Date (the “Initial Term”).

2. Additional terms may be negotiated upon mutual agreement.

B. Termination.

1. Without cause. This Agreement may be terminated without cause with 180 days’ written notice.

2. For cause.

i. If a Party materially fails in their obligations under this Agreement, written notice shall be given to the Party to cure the breach.

ii. The Party receiving written notice must reply with a remediation plan within ten (10) business days.

iii. If the Party does not cure the breach within thirty (30) days of receiving written notice, this Agreement shall terminate for cause.

IX. Hold Harmless. Each Party (the “Indemnifying Party”) shall hold the other Party and its employees, officers, directors, agents and representatives (collectively, the “Indemnified Party”) harmless from any and all costs, claims, losses, damages, liabilities, expenses, demands and judgments, including court costs and attorney's fees, resulting from any claim, demand, suit, or other legal proceeding made by any third party arising from any breach by the Indemnifying Party, its employees, officers, directors, agents or representatives of its obligations under this Agreement. The Indemnifying Party will have no obligation to indemnify any Indemnified Party to the extent the liability is caused by such Indemnified Party’s gross negligence or willful misconduct or by any breach of such Indemnified Party of its obligations under this Agreement.

X. General Provisions

A. Governing Law. This Agreement shall be governed by the laws of the State of ______, without giving effect to the conflicts of laws provisions thereof.

B. Integration. This Agreement contains the entire agreement of the Parties and supersedes all oral agreements, negotiations and representations between the parties pertaining to the subject matter of this Agreement.

C. No Third Party Beneficiaries. Nothing in this Agreement shall be construed as giving any person, corporation or other entity other than the Parties any right, remedy or claim under or in respect of this Agreement or any provision hereof.

D. Severability. If any provision of this Agreement is found to be invalid, the remaining provisions shall remain in full force and effect.

E. Waiver of Breach. The waiver by either Party of any breach of any provision of this Agreement shall not be deemed a waiver of any subsequent breach by the other Party of the same or of different provisions.

F. Binding Effect; Assignment. Except as otherwise provided in this Agreement, every covenant, term and provision of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective and permitted successors, transferees and assigns. Neither Party may assign, subcontract or transfer any of its rights, responsibilities or obligations under this Agreement without the other Party’s prior written consent, which such Party may withhold in its sole discretion.

G. Amendment. Any amendment to this Agreement shall be made in writing, signed by an authorized representative of each Party, and attached to this Agreement.

H. Notices. Notices required by this Agreement shall be made in writing and delivered via U.S. mail (postage prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic means (provided that receipt is confirmed). Any notice delivered or sent as described above shall be effective on the date received. All notices and other written communications under this Agreement shall be addressed to the individuals in the capacities indicated below, unless otherwise modified by subsequent written notice.

If to STS: If to Provider:

Name: Aiden Smith Jennifer Hernandez

Title: President & CEO Owner & Director

Business: State Suppliers Hometown Child Care

Street Address: 12345 Main Street 6789 Main Street

City, State, Zip: Town, STATE 99999 Town, STATE 99999

Telephone: (999) 123-4567 (999) 987-6543

Email Address: ASmith@STSuppliers.com HTCCowner@gmail.com

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first set forth above.

For STS: For Provider:

____________________________ ___________________________

Date: _______________________ Date: ______________________

Aiden Smith Jennifer Hernandez

President & CEO Owner & Director

State Suppliers Hometown Child Care

Sample Service Agreement 2

For child care programs allocating some slots to a business’s employees in a space already operated by the child care business

The Service Agreement (“Agreement”) is made and entered into on September 1, 2022, by and between Plaintown Community Action, (“PCA”), a State nonprofit corporation with principal offices located at 12345 Main Street, Plaintown, State 99999, and Luz Garcia DBA Central Kids Home Care (“Provider”), a State sole proprietor operating a licensed child care home located at 6789 North Street, Plaintown, State 99999. PCA and Provider shall hereinafter be referred to as “Parties,” and, individually, a “Party.”

Whereas PCA seeks to reserve slots in a child care program for their employees families;

Whereas, Provider offers a quality, home-based child care program located near PCA offices;

Therefore, PCA and Provider enter into this Agreement as follows.

I Child Care Program

A. Provider shall offer child care services (“Services”) for the dependent children of STS employees at Program Site Address, Town, State, 99999. The operations of the “Services” at this location shall hereinafter be referred to as the “Program Site.”

B. The Program Site’s operating schedule will be Monday through Friday, 8:00 AM to 5:30 PM.

a. The Program closes for two weeks per year: one week in July and one week in late December. Provider will inform STS of exact weeks of closure with three (3) months’ advance notice.

C. Provider shall reserve a maximum of five (5) child care slots for PCA children from birth to age twelve.

1. In accordance with State Child Care Regulation, family child care home capacity will reduce depending on the number of enrolled infants and toddlers. Even if fewer than five (5) PCA children are enrolled, children of certain ages might need to be placed on a wait list until slots open for them so that the Provider can remain in compliance and continue to provide high-quality care.

2. The number of child care slots reserved for PCA is determined based on the current interest and enrollment of PCA’s employees. PCA’s employees have expressed that they will enroll five (5) children before February 1, 2023.

3. At least every six (6) months, the number of slots reserved for PCA’s employees will be revisited based on circumstances and interest from PCA’s employees. PCA and Provider will discuss and mutually agree upon changes to the number of reserved slots, depending on PCA employee interest and Provider’s other enrollments.

4. If at any time, Provider enrolls 50% or fewer PCA children than agreed-upon reserved PCA slots, Provider can reduce the number of open, reserved PCA child care slots so that other children in the community can be enrolled.

II. Provider Responsibilities

A. Space. Provider shall be responsible for the lease agreement for the residential space (with shared business use) at Program Site Address. Provider shall maintain the Program Site for in accordance with standards expected of a quality child care program.

B. Employment. As needed, provider shall hire, employ, pay, and supervise qualified staff to meet the needs of the child care program. Provider shall have the sole authority to hire and fire employees of the Program providing Services under this Agreement. Provider’s employees shall remain solely employees of the Provider at all times, subject to the Provider’s employment terms and conditions.

C. Enrollment Periods. Enrolled families shall abide by the enrollment terms set forth in the Provider’s Family Handbook. The Family Handbook has been provided to PCA.

D. Tuition. Provider is responsible for collecting and receiving all tuition payments from enrolled families. If Provider has not received sufficient tuition payment from PCA families:

i. Within two consecutive weeks: Provider will issue a written warning to the family.

ii. Within three consecutive weeks or for three weeks within a two-month period: Provider must issue a written warning to the family via

email with a copy to PCA’s Human Resources Coordinator.

iii. Family enrollment will be considered returned to good standing once all overdue tuition has been received.

iv. Provider reserves the right to terminate enrollment of families who have outstanding balances of four weeks of unpaid tuition for one

enrolled child.

A. Insurance. Provider shall, at all times during the Agreement, carry insurance in such form and in such amounts that PCA may from time to time reasonably require against insurable hazards and casualties that are commonly insured against in the performance of similar services to those provided by Provider under this Agreement, including general liability insurance and business property insurance.

PCA Responsibilities

A. Offering. All PCA employees shall be informed about this child care partnership as an employee benefit. PCA’s Human Resources Coordinator shall be the point of contact for employees interested in learning more about the child care partnership.

B. Employee Interest. PCA shall reassess employee interest in the Services every six (6) months. PCA shall communicate in writing whether they request to maintain, decrease, or increase reserved slots for their employees’ children.

IV. Mutual responsibilities

A. Changes to reserved slots. Decreases or increases in reserved slots will be mutually discussed and agreed upon by PCA and Provider on a six (6) month basis, based on PCA employee interest and Provider availability.

V. Term & Termination

A. Term.

1. This Agreement shall have an initial term of one (1) year commencing on the Effective Date (the “Initial Term”).

2. Additional terms may be negotiated upon mutual agreement.

B. Termination.

1. Without cause. This Agreement may be terminated without cause with sixty (60) days’ written notice.

2. For cause.

i. If a Party materially fails in their obligations under this Agreement, written notice shall be given to the Party to cure the breach.

ii. The Party receiving written notice must reply with a remediation plan within ten (10) business days.

iii. If the Party does not cure the breach within thirty (30) days of receiving written notice, this Agreement shall terminate for cause.

VI. Hold Harmless. Each Party (the “Indemnifying Party”) shall hold the other Party and its employees, officers, directors, agents and representatives (collectively, the “Indemnified Party”) harmless from any and all costs, claims, losses, damages, liabilities, expenses, demands and judgments, including court costs and attorney's fees, resulting from any claim, demand, suit, or other legal proceeding made by any third party arising from any breach by the Indemnifying Party, its employees, officers, directors, agents or representatives of its obligations under this Agreement. The Indemnifying Party will have no obligation to indemnify any Indemnified Party to the extent the liability is caused by such Indemnified Party’s gross negligence or willful misconduct or by any breach of such Indemnified Party of its obligations under this Agreement.

VII. General Provisions