• General Principles
• Gifts From Outside Sources
• Gifts Between Employees
• Conflicting Financial Interests
• Remedies for Financial Conflicts of Interest
  • Recusals
  • Waivers
  • Divestiture
  • Trusts
• Impartiality in Performing Official Duties
• Seeking Other Employment
• Misuse of Position
• Outside Activities
• Post-Employment
• Representation to Government Agencies and Courts
• Supplementation of Salary
• Financial Disclosure
  • Public Financial Disclosure
  • Confidential Financial Disclosure
  • Presidential Appointment Process
• Informal Advisory Letters and Memoranda and Formal Opinions
• DAEOgrams
• Contractors in the Workplace

General Principles

Executive branch employees hold their positions as a public trust and the American people have a right to expect that all employees will place loyalty to the Constitution, laws, regulations, and ethical principles above private gain. Employees fulfill that trust by adhering to general principles of ethical conduct, as well as specific ethical standards.

Executive Order 12674 (HTML - PDF - TXT) issued by President Bush in 1989 and modified in 1990 by Executive Order 12731 (HTML - PDF - TXT) states 14 general principles that broadly define the obligations of public service. Underlying these 14 principles are two core concepts - -

• employees shall not use public office for private gain, and
  
• employees shall act impartially and not give preferential treatment to any private organization or individual.

In addition, employees must strive to avoid any action that would create the appearance that they are violating the law or ethical standards.

By observing these general principles, and specific ethics standards, employees help to ensure that citizens have confidence in the integrity of Government operations and programs.

Please note that an officer or employee who is appointed to perform temporary duties for 130 or fewer days is a "Special Government Employee" (SGE). Many of the provisions summarized below apply differently to SGEs. For a summary of these differences, see OGE Informal Opinion 00x1 (Feb. 15, 2000).

Reference: Executive Order (E.O.) 11222; E.O. 12674, as modified by E.O. 12731; 3 C.F.R. 306-311 (1990); 5 C.F.R. § 2635.101; 18 U.S.C. § 202.

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Gifts From Outside Sources

Executive branch employees are subject to restrictions on the gifts that they may accept from sources outside the Government. Generally they may not accept gifts that are given because of their official positions or that come from certain interested sources ("prohibited sources"). Prohibited sources include persons (or an organization made up of such persons) who --

• are seeking official action by, are doing business or seeking to do business with, or are regulated by the employee's agency, or
• have interests that may be substantially affected by performance or nonperformance of the employee's official duties.

In addition, an employee can never solicit or coerce the offering of a gift, or accept a gift in return for being influenced in the performance of an official act. Nor can an employee accept gifts so frequently that a reasonable person might think that the employee was using public office for private gain.

There are a number of exceptions to the ban on gifts from outside sources. These allow an employee to accept --

• a gift valued at $20 or less, provided that the total value of gifts from the same person is not more than $50 in a calendar year
• a gift motivated solely by a family relationship or personal friendship
• a gift based on an employee's or his spouse's outside business or employment relationships, including a gift customarily provided by a prospective employer as part of bona fide employment discussions
• a gift provided in connection with certain political activities
• gifts of free attendance at certain widely attended gatherings, provided that the agency has determined that attendance is in the interest of the agency
• modest refreshments (such as coffee and donuts), greeting cards, plaques and other items of little intrinsic value
• discounts available to the public or to all Government employees, rewards and prizes connected to competitions open to the general public.

These exceptions are subject to some limitations on their use. For example, an employee can never solicit or coerce the offering of a gift. Nor can an employee use exceptions to accept gifts on such a frequent basis that a reasonable person would believe that the employee was using public office for private gain.

If an employee has received a gift that cannot be accepted, the employee may return the gift or pay its market value. If the gift is perishable (e.g. a fruit basket or flowers) and it is not practical to return it, the gift may, with approval, be given to charity or shared in the office.

Reference: 5 C.F.R. §§ 2635.201-205.

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Gifts Between Employees

Executive branch employees may not give a gift to an official superior nor can an employee accept a gift from another employee who receives less pay, except in certain circumstances.

On an occasional basis, the following individual gifts to a supervisor are permitted --

• gifts other than cash that are valued at no more than $10
• food and refreshments shared in the office
• personal hospitality in the employee's home that is the same as that customarily provided to personal friends
• gifts given in connection with the receipt of personal hospitality that is customary to the occasion, and
• transferred leave, provided that it is not to an immediate superior.

On certain special infrequent occasions a gift may be given that is appropriate to that occasion. These occasions include --

• events of personal significance such as marriage, illness or the birth or adoption of a child, or
• occasions that terminate the subordinate-official superior relationship such as retirement, resignation or transfer.

Reference: 5 C.F.R. §§ 2635.301-304.

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Conflicting Financial Interests

An executive branch employee is prohibited by a Federal criminal statute from participating personally and substantially in a particular Government matter that will affect his own financial interests, as well as the financial interests of -

• his spouse or minor child
• his general partner
• an organization in which he serves as an officer, director, trustee, general partner or employee, and
• a person with whom he is negotiating for or has an arrangement concerning prospective employment.

Several kinds of financial interests are exempt from this prohibition. These include direct or imputed financial interests in securities that are worth $15,000 or less and financial interests in diversified mutual funds and unit investment trusts, regardless of their value.

Agencies may, by supplemental regulation, prohibit or restrict the holding of certain financial interests by all or a group of agency employees. A few agencies extend such restrictions to the employee's spouse and minor children.

Reference: 18 U.S.C. § 208; 5 C.F.R. §§ 2635.401-403; 5 C.F.R. Part 2640.

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Impartiality in Performing Official Duties

Executive branch employees are required to consider whether their impartiality may be questioned whenever their involvement in a particular matter involving specific parties might affect certain personal and business relationships. A pending case, contract, grant, permit, license or loan are some examples of particular matters involving specific parties. A general rulemaking, on the other hand, is not.

If a particular matter involving specific parties would have an effect on the financial interest of a member of the employee's household, or if a person with whom the employee has a "covered relationship" is or represents a party to such a matter, then the employee must consider whether a reasonable person would question his impartiality in the matter. If the employee concludes that there would be an appearance problem, then the employee should not participate in the matter unless authorized by the agency.

An employee has a "covered relationship" with the following persons --

• a person with whom the employee has or seeks a business, contractual or other financial relationship
• a person who is a member of the employee's household or is a relative with whom the employee has a close personal relationship
• a person for whom the employee's spouse, parent or dependent child serves or seeks to serve as an officer, director, trustee, general partner, agent, attorney, consultant, contractor or employee
• any person for whom the employee has within the last year served as officer, director, trustee, general partner, agent, attorney, consultant, contractor or employee, or
• any organization (other than a political party) in which the employee is an active participant.

If someone who is entering Government service has received a special severance payment or other benefit in excess of $10,000 which his former employer does not make to other departing employees not entering into Federal service, and if certain other factors are present, then the employee must be disqualified for two years from participating in any particular matter in which the former employer is a party or represents a party. The agency may waive or shorten the disqualification period.

Reference: 5 C.F.R. §§ 2635.501-503.

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Seeking Other Employment

An executive branch employee may not participate in any particular Government matter that will affect the financial interests of a person or entity with whom he is seeking employment. An employee is considered to be seeking employment if --

• the employee is engaged in actual negotiations for employment
• a potential employer has contacted the employee about possible employment and the employee makes a response other than rejection, and
• the employee has contacted a prospective employer about possible employment (unless the sole purpose of the contact is to request a job application or if the person contacted is affected by the performance of the employee's duties only as part of an industry).

An employee is considered no longer seeking employment if --

• either the employee or the prospective employer rejects the possibility of employment and all discussions of possible employment have ended, or
• two months have elapsed since the employee's dispatch of an unsolicited resume and the employee has received no expression of interest from the prospective employer.

In some cases, an employee may be authorized by an agency official to participate in particular matters from which he would otherwise have to be disqualified due to his job search. In other cases, an agency ethics official may determine that an employee who has sought, but is no longer seeking, employment nevertheless shall be subject to a continuing period of disqualification.

Reference: 18 U.S.C. § 208; 5 C.F.R. §§ 2635.601-606.

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Misuse of Position

Executive branch employees must not use their public office for their own or another's private gain. Employees are not to use their position, title or any authority associated with their office to coerce or induce a benefit for themselves or others.

Employees also are not to use or allow the improper use of nonpublic information to further a private interest, either their own or another's.

Employees may use Government property only for authorized purposes. Government property includes office supplies, telephones, computers, copiers and any other property purchased with Government funds.

Employees may not misuse official time. This includes the employee's own time as well as the time of a subordinate.

Reference: 5 C.F.R. §§ 2635.701-705.

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Outside Activities

Executive branch employees may be subject to some limitations on the outside activities in which they may be involved. An employee may not have outside employment or be involved in an outside activity that conflicts with the official duties of the employee's position. An activity conflicts with official duties --

• if it is prohibited by statute or by the regulations of the employee's agency, or
• if the activity would require the employee to be disqualified from matters so central to the performance of the employee's official duties as to materially impair the employee's ability to carry out those duties.

Employees of some agencies may be required by their agency's own supplemental conduct regulations to obtain prior approval before engaging in certain outside employment or activities.

The Supreme Court has held that prohibitions on the acceptance of honoraria contained in the Ethics Reform Act of 1989 violated the First Amendment. Thus, an employee generally may accept honoraria; but he may not be paid for outside teaching, speaking and writing if the activity relates to his official duties. However, an exception permits him to be paid for teaching a course at an accredited educational institution, even where the subject does relate to his official duties. Employees may not use their official title or position (except as part of a biography or for identification as the author of an article with an appropriate disclaimer) to promote a book, seminar, course, program or similar undertaking.

Presidential appointees to full-time, non-career positions generally are prohibited from receiving outside earned income. Also, certain other non-career employees are subject to monetary limitations on the amount of outside income that the may earn.

Reference: 5 C.F.R. §§ 2635.801-809; United States v. National Treasury Employees Union, 115 S. Ct. 1003 (1995); OGE DAEOgram DO-95-011 (March 3, 1995).

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Post-Employment

Executive branch employees may be subject to certain restrictions on their activity after they leave Government service. Two of the restrictions apply with respect to particular matters involving specific parties that they were involved with while in Government service. If the employee's involvement in such a matter was personal and substantial, then the employee is permanently barred from representing anyone back to any Federal department, agency, or court on that same matter. If the matter was under the employee's official responsibility during the last year of Government service, then the employee is barred for two years after leaving Government service from representing anyone back to the Government on that same matter.

In addition, certain high level officials are subject to a so-called one-year "cooling off " period. For a period of one year after leaving a "senior" position, these officials may not make any appearance before or communication to their former agencies on behalf of any person (other than the United States), with the intent to influence them on any matter in which that person seeks official action.

A former "very senior" employee may not make any communication to or appearance before certain high level executive branch officials, in addition to employees of his former agency during the first year after he has left Government.

Former senior and very senior employees also are restricted for one year after leaving Government service from representing, aiding or advising foreign governments or foreign political parties before an agency or department of the United States. Employees who participated personally and substantially in an ongoing trade or treaty negotiation are subject to additional restrictions.

Reference: 18 U.S.C. § 207; 5 C.F.R. parts 2637 and 2641.

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Representation to Government Agencies and Courts

Executive branch employees are subject to criminal statutes that prohibit the representation of private interests before the Government. One of these laws prohibits an employee from prosecuting a claim against the United States or acting as the agent or attorney of a private party before the Government in connection with a particular matter in which the United States is a party or has a direct and substantial interest. This prohibition applies whether or not the employee receives compensation for the representation.

There is an exception that allows an employee to represent, with or without compensation --

• the employee (self-representation),
• a parent, spouse or child of the employee, or
• a person or estate that the employee serves as a guardian, executor, administrator, trustee or personal fiduciary.

The matter involved may not be one in which the employee participated personally and substantially or which was the subject of the employee's official responsibility. Also the employee must obtain approval for the activity from the employee's appointing official.

There is another exception that allows an employee to represent, without compensation --

• employee nonprofit organizations (such as child care centers, recreational associations, professional organizations, credit unions or other similar groups) before the U.S. Government under certain circumstances. The employee may not be compensated. And the employee may not represent an employee group in claims against the Government, in seeking grants, contracts or cash from the Government, or in litigation where the group is a party;
• a person who is the subject of disciplinary, loyalty, or personnel administration proceedings.

Another law governing representational activity prohibits an employee from accepting compensation for certain representational services before the Government whether those services were provided by the employee personally or by some other person. Again, there are exceptions that would allow for the representation of a parent, spouse, child or person served in a fiduciary capacity.

Reference: 18 U.S.C. §§ 205, 203.

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Supplementation of Salary

Executive branch employees may not be paid by someone other than the United States for doing their Government job. Thus, for example, a highly paid executive of a corporation upon entering Government service could not accept an offer from her former employer to make up the difference between her Government salary and the compensation she received from her former employer.

This prohibition does not apply to --

• special Government employees and employees serving without compensation
• funds contributed out of the treasury of any State, county, or municipality
• continued participation in a bona fide pension, retirement, group life, health or accident insurance, profit-sharing, stock bonus, or other employee welfare or benefit plan maintained by a former employer
• payments for travel, subsistence and other expenses made to an employee by a tax-exempt nonprofit organization incurred in connection with training, and
• moving expenses incurred in connection with participation in an executive exchange or fellowship program in an executive agency.

Reference: 18 U.S.C. § 209.

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Financial Disclosure

The Office of Government Ethics oversees the administration of the public and confidential financial disclosure systems for the executive branch.

Reference: Section 102(f), Ethics in Government Act of 1978; 5 C.F.R. part 2634.

Public Financial Disclosure

Certain senior officers and employees of the executive branch are required to file publicly available reports (SF 278) disclosing their financial interests as well as the interests of their spouse and minor children. Public filers must report --

• interests in property held in a trade or business or for investment or the production of income (real estate, stocks, bonds, securities, futures contracts, beneficial interests in trusts or estates, pensions and annuities, mutual funds, etc.) that meet reporting thresholds
• earned income, retirement benefits, honoraria and any other non-investment income
• gifts and reimbursements that meet reporting thresholds
• liabilities (personal loans from certain family members, a mortgage on a personal residence, automobile, furniture and appliance loans, revolving charge accounts that do not exceed $10,000 at the close of the reporting period are excluded from reporting)
• agreements or arrangements with respect to future employment, leaves of absence and continuation of payments or benefits from a former employer, and
• outside positions as an officer, director, trustee, general partner, proprietor, employee, consultant, etc. of any organization (but positions with religious, social, fraternal or political entities are excluded, as are solely honorary positions).

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From time to time, the Office of Government Ethics also sends memoranda to agency ethics officials and others providing guidance on how to interpret and comply with modifications or new issuances of ethics laws, policies, and procedures. Copies of the memoranda released since 1992 are available in the DAEOgrams section of this web site.

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The Government relies on many contractors to provide products to the Government and perform services for or on behalf of the Government. Contractor personnel generally are not subject to the same general principles of ethical conduct and specific ethical standards as are executive branch employees. However, Federal contractors and their employees are subject to other restrictions, many of which involve standards of conduct and ethical concerns, which are imposed by law or regulation, by contract, and often by the contractors, themselves.