Standards of 

Ethical Conduct 

for Employees 

of the

Executive Branch

Final Regulation Issued by the

U.S. Office of Government Ethics

Codified in 5 C.F.R. Part 2635 

As amended at 81 FR 81641 (effective January 1, 2017)
TABLE OF CONTENTS

SUBPART A—GENERAL PROVISIONS ................................................................................ 1

§ 2635.101 Basic obligation of public service.......................................................................... 1

§ 2635.102 Definitions.............................................................................................................. 2

§ 2635.103 Applicability to members of the uniformed services............................................. 4

§ 2635.104 Applicability to employees on detail. .................................................................... 4

§ 2635.105 Supplemental agency regulations. ......................................................................... 5

§ 2635.106 Disciplinary and corrective action. ........................................................................ 6

§ 2635.107 Ethics advice. ......................................................................................................... 7

SUBPART B—GIFTS FROM OUTSIDE SOURCES.............................................................. 8

§ 2635.201 Overview and considerations for declining otherwise permissible gifts. .............. 8

§ 2635.202 General prohibition on solicitation or acceptance of gifts..................................... 9

§ 2635.203 Definitions............................................................................................................ 10

§ 2635.204 Exceptions to the prohibition for acceptance of certain gifts. ............................. 15

§ 2635.205 Limitations on use of exceptions. ........................................................................ 29

§ 2635.206 Proper disposition of prohibited gifts. ................................................................. 30

SUBPART C—GIFTS BETWEEN EMPLOYEES................................................................. 32

§ 2635.301 Overview.............................................................................................................. 32

§ 2635.302 General standards................................................................................................. 32

§ 2635.303 Definitions............................................................................................................ 32

§ 2635.304 Exceptions............................................................................................................ 33

SUBPART D—CONFLICTING FINANCIAL INTERESTS ................................................ 37

§ 2635.401 Overview.............................................................................................................. 37

§ 2635.402 Disqualifying financial interests. ......................................................................... 37

§ 2635.403 Prohibited financial interests................................................................................ 43

SUBPART E—IMPARTIALITY IN PERFORMING OFFICIAL DUTIES....................... 46

§ 2635.501 Overview.............................................................................................................. 46

§ 2635.502 Personal and business relationships..................................................................... 47

§ 2635.503 Extraordinary payments from former employers................................................. 51

SUBPART F—SEEKING OTHER EMPLOYMENT............................................................ 54

§ 2635.601 Overview............................................................................................................... 54

§ 2635.602 Applicability and related considerations.............................................................. 54

§ 2635.603 Definitions............................................................................................................ 56

§ 2635.604 Recusal while seeking employment..................................................................... 60

§ 2635.605 Waiver or authorization permitting participation while seeking employment. ... 63

§ 2635.606 Recusal based on an arrangement concerning prospective employment or 

otherwise after negotiations................................................................................. 64

§ 2635.607 Notification requirements for public financial disclosure report filers regarding 

negotiations for or agreement of future employment or compensation. ............. 65

SUBPART G—MISUSE OF POSITION ................................................................................. 68

§ 2635.701 Overview.............................................................................................................. 68

§ 2635.702 Use of public office for private gain. ................................................................... 68

§ 2635.703 Use of nonpublic information. ............................................................................. 70
§ 2635.704 Use of Government property. .............................................................................. 71

§ 2635.705 Use of official time. ............................................................................................. 72

SUBPART H—OUTSIDE ACTIVITIES ................................................................................. 74

§ 2635.801 Overview.............................................................................................................. 74

§ 2635.802 Conflicting outside employment and activities.................................................... 76

§ 2635.803 Prior approval for outside employment and activities. ........................................ 77

§ 2635.804 Outside earned income limitations applicable to certain Presidential appointees 

and other noncareer employees. .......................................................................... 77

§ 2635.805 Service as an expert witness. ............................................................................... 78

§ 2635.806 Participation in professional associations. [Reserved]......................................... 79

§ 2635.807 Teaching, speaking and writing. .......................................................................... 79

§ 2635.808 Fundraising activities........................................................................................... 88

§ 2635.809 Just financial obligations...................................................................................... 91

SUBPART I—RELATED STATUTORY AUTHORITIES................................................... 92

§ 2635.901 General................................................................................................................. 92

§ 2635.902 Related statutes. ................................................................................................... 92
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

1

PART 2635—STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES 

OF THE EXECUTIVE BRANCH

SUBPART A—GENERAL PROVISIONS

§ 2635.101 Basic obligation of public service.

(a) Public service is a public trust. Each employee has a responsibility to the United States 

Government and its citizens to place loyalty to the Constitution, laws and ethical principles 

above private gain. To ensure that every citizen can have complete confidence in the 

integrity of the Federal Government, each employee shall respect and adhere to the 

principles of ethical conduct set forth in this section, as well as the implementing standards 

contained in this part and in supplemental agency regulations.

(b) General principles. The following general principles apply to every employee and may 

form the basis for the standards contained in this part. Where a situation is not covered by 

the standards set forth in this part, employees shall apply the principles set forth in this 

section in determining whether their conduct is proper.

(1) Public service is a public trust, requiring employees to place loyalty to the 

Constitution, the laws and ethical principles above private gain.

(2) Employees shall not hold financial interests that conflict with the conscientious 

performance of duty.

(3) Employees shall not engage in financial transactions using nonpublic Government 

information or allow the improper use of such information to further any private 

interest.

(4) An employee shall not, except as permitted by subpart B of this part, solicit or accept 

any gift or other item of monetary value from any person or entity seeking official 

action from, doing business with, or conducting activities regulated by the 

employee’s agency, or whose interests may be substantially affected by the 

performance or nonperformance of the employee’s duties.

(5) Employees shall put forth honest effort in the performance of their duties.

(6) Employees shall not knowingly make unauthorized commitments or promises of any 

kind purporting to bind the Government.

(7) Employees shall not use public office for private gain.
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

2

(8) Employees shall act impartially and not give preferential treatment to any private 

organization or individual.

(9) Employees shall protect and conserve Federal property and shall not use it for other 

than authorized activities.

(10) Employees shall not engage in outside employment or activities, including seeking or 

negotiating for employment, that conflict with official Government duties and 

responsibilities.

(11) Employees shall disclose waste, fraud, abuse, and corruption to appropriate 

authorities.

(12) Employees shall satisfy in good faith their obligations as citizens, including all just 

financial obligations, especially those—such as Federal, State, or local taxes—that 

are imposed by law.

(13) Employees shall adhere to all laws and regulations that provide equal opportunity for 

all Americans regardless of race, color, religion, sex, national origin, age, or 

handicap.

(14) Employees shall endeavor to avoid any actions creating the appearance that they are 

violating the law or the ethical standards set forth in this part. Whether particular 

circumstances create an appearance that the law or these standards have been violated 

shall be determined from the perspective of a reasonable person with knowledge of 

the relevant facts.

(c) Related statutes. In addition to the standards of ethical conduct set forth in this part, there 

are conflict of interest statutes that prohibit certain conduct. Criminal conflict of interest 

statutes of general applicability to all employees, 18 U.S.C. 201, 203, 205, 208, and 209, 

are summarized in the appropriate subparts of this part and must be taken into 

consideration in determining whether conduct is proper. Citations to other generally 

applicable statutes relating to employee conduct are set forth in subpart I and employees 

are further cautioned that there may be additional statutory and regulatory restrictions 

applicable to them generally or as employees of their specific agencies. Because an 

employee is considered to be on notice of the requirements of any statute, an employee 

should not rely upon any description or synopsis of a statutory restriction, but should refer 

to the statute itself and obtain the advice of an agency ethics official as needed.

§ 2635.102 Definitions.

The definitions listed below are used throughout this part. Additional definitions appear in the 

subparts or sections of subparts to which they apply. For purposes of this part:
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

3

(a) Agency means an executive agency as defined in 5 U.S.C. 105 and the Postal Service and 

the Postal Rate Commission. It does not include the General Accounting Office or the 

Government of the District of Columbia.

(b) Agency designee refers to any employee who, by agency regulation, instruction, or other 

issuance, has been delegated authority to make any determination, give any approval, or 

take any other action required or permitted by this part with respect to another employee. 

An agency may delegate these authorities to any number of agency designees necessary to 

ensure that determinations are made, approvals are given, and other actions are taken in a 

timely and responsible manner. Any provision that requires a determination, approval, or 

other action by the agency designee shall, where the conduct in issue is that of the agency 

head, be deemed to require that such determination, approval or action be made or taken by 

the agency head in consultation with the designated agency ethics official.

(c) Agency ethics official refers to the designated agency ethics official or to the alternate 

designated agency ethics official, referred to in § 2638.202(b) of this chapter, and to any 

deputy ethics official, described in § 2638.204 of this chapter, who has been delegated 

authority to assist in carrying out the responsibilities of the designated agency ethics 

official.

(d) Agency programs or operations refers to any program or function carried out or performed 

by an agency, whether pursuant to statute, Executive order, or regulation.

(e) Corrective action includes any action necessary to remedy a past violation or prevent a 

continuing violation of this part, including but not limited to restitution, change of 

assignment, disqualification, divestiture, termination of an activity, waiver, the creation of 

a qualified diversified or blind trust, or counseling.

(f) Designated agency ethics official refers to the official designated under § 2638.201 of this 

chapter.

(g) Disciplinary action includes those disciplinary actions referred to in Office of Personnel 

Management regulations and instructions implementing provisions of title 5 of the United 

States Code or provided for in comparable provisions applicable to employees not subject 

to title 5, including but not limited to reprimand, suspension, demotion, and removal. In the 

case of a military officer, comparable provisions may include those in the Uniform Code of 

Military Justice.

(h) Employee means any officer or employee of an agency, including a special Government 

employee. It includes officers but not enlisted members of the uniformed services. It 

includes employees of a State or local government or other organization who are serving on 

detail to an agency, pursuant to 5 U.S.C. 3371, et seq. For purposes other than subparts B 

and C of this part, it does not include the President or Vice President. Status as an 
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

4

employee is unaffected by pay or leave status or, in the case of a special Government 

employee, by the fact that the individual does not perform official duties on a given day.

(i) Head of an agency means, in the case of an agency headed by more than one person, the 

chair or comparable member of such agency.

(j) He, his, and him include she, hers and her.

(k) Person means an individual, corporation and subsidiaries it controls, company, association, 

firm, partnership, society, joint stock company, or any other organization or institution, 

including any officer, employee, or agent of such person or entity. For purposes of this part, 

a corporation will be deemed to control a subsidiary if it owns 50 percent or more of the 

subsidiary’s voting securities. The term is all-inclusive and applies to commercial ventures 

and nonprofit organizations as well as to foreign, State, and local governments, including 

the Government of the District of Columbia. It does not include any agency or other entity 

of the Federal Government or any officer or employee thereof when acting in his official 

capacity on behalf of that agency or entity.

(l) Special Government employee means those executive branch officers or employees 

specified in 18 U.S.C. 202(a). A special Government employee is retained, designated, 

appointed, or employed to perform temporary duties either on a full-time or intermittent 

basis, with or without compensation, for a period not to exceed 130 days during any 

consecutive 365-day period.

(m) Supplemental agency regulation means a regulation issued pursuant to § 2635.105.

§ 2635.103 Applicability to members of the uniformed services.

The provisions of this part, except this section, are not applicable to enlisted members of the 

uniformed services. Each agency with jurisdiction over enlisted members of the uniformed 

services shall issue regulations defining the ethical conduct obligations of enlisted members 

under its jurisdiction. Those regulations shall be consistent with Executive Order 12674, 

April 12, 1989, as modified, and may prescribe the full range of statutory and regulatory 

sanctions, including those available under the Uniform Code of Military Justice, for failure to 

comply with such regulations.

§ 2635.104 Applicability to employees on detail.

(a) Details to other agencies. Except as provided in paragraph (d) of this section, an employee 

on detail, including a uniformed officer on assignment, from his employing agency to 

another agency for a period in excess of 30 calendar days shall be subject to any 

supplemental agency regulations of the agency to which he is detailed rather than to any 

supplemental agency regulations of his employing agency.
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

5

(b) Details to the legislative or judicial branch. An employee on detail, including a uniformed 

officer on assignment, from his employing agency to the legislative or judicial branch for a 

period in excess of 30 calendar days shall be subject to the ethical standards of the branch 

or entity to which detailed. For the duration of any such detail or assignment, the employee 

shall not be subject to the provisions of this part, except this section, or, except as provided 

in paragraph (d) of this section, to any supplemental agency regulations of his employing 

agency, but shall remain subject to the conflict of interest prohibitions in title 18 of the 

United States Code.

(c) Details to non-Federal entities. Except to the extent exempted in writing pursuant to this 

paragraph, an employee detailed to a non-Federal entity remains subject to this part and to 

any supplemental agency regulation of his employing agency. When an employee is 

detailed pursuant to statutory authority to an international organization or to a State or local 

government for a period in excess of six months, the designated agency ethics official may 

grant a written exemption from subpart B of this part based on his determination that the 

entity has adopted written ethical standards covering solicitation and acceptance of gifts 

which will apply to the employee during the detail and which will be appropriate given the 

purpose of the detail.

(d) Applicability of special agency statutes. Notwithstanding paragraphs (a) and (b) of this 

section, an employee who is subject to an agency statute which restricts his activities or 

financial holdings specifically because of his status as an employee of that agency shall 

continue to be subject to any provisions in the supplemental agency regulations of his 

employing agency that implement that statute.

§ 2635.105 Supplemental agency regulations.

In addition to the regulations set forth in this part, an employee shall comply with any 

supplemental agency regulations issued by his employing agency under this section.

(a) An agency that wishes to supplement this part shall prepare and submit to the Office of 

Government Ethics, for its concurrence and joint issuance, any agency regulations that 

supplement the regulations contained in this part. Supplemental agency regulations which 

the agency determines are necessary and appropriate, in view of its programs and 

operations, to fulfill the purposes of this part shall be:

(1) In the form of a supplement to the regulations in this part; and

(2) In addition to the substantive provisions of this part.

(b) After concurrence and co-signature by the Office of Government Ethics, the agency shall 

submit its supplemental agency regulations to the Federal Register for publication and 

codification at the expense of the agency in title 5 of the Code of Federal Regulations. 

Supplemental agency regulations issued under this section are effective only after 
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

6

concurrence and co-signature by the Office of Government Ethics and publication in the

Federal Register.

(c) This section applies to any supplemental agency regulations or amendments thereof issued 

under this part. It does not apply to:

(1) A handbook or other issuance intended merely as an explanation of the standards 

contained in this part or in supplemental agency regulations;

(2) An instruction or other issuance the purpose of which is to:

(i) Delegate to an agency designee authority to make any determination, give any 

approval or take any other action required or permitted by this part or by 

supplemental agency regulations; or

(ii) Establish internal agency procedures for documenting or processing any 

determination, approval or other action required or permitted by this part or by 

supplemental agency regulations, or for retaining any such documentation; or

(3) Regulations or instructions that an agency has authority, independent of this part, to 

issue, such as regulations implementing an agency’s gift acceptance statute, 

protecting categories of nonpublic information or establishing standards for use of 

Government vehicles. Where the content of any such regulations or instructions was 

included in the agency’s standards of conduct regulations issued pursuant to 

Executive Order 11222 and the Office of Government Ethics concurs that they need 

not be issued as part of an agency’s supplemental agency regulations, those 

regulations or instructions may be promulgated separately from the agency’s 

supplemental agency regulations.

(d) Employees of a State or local government or other organization who are serving on detail 

to an agency, pursuant to 5 U.S.C. 3371, et seq., are subject to any requirements, in 

addition to those in this part, established by a supplemental agency regulation issued under 

this section to the extent that such regulation expressly provides.

§ 2635.106 Disciplinary and corrective action.

(a) Except as provided in § 2635.107, a violation of this part or of supplemental agency 

regulations may be cause for appropriate corrective or disciplinary action to be taken under 

applicable Government wide regulations or agency procedures. Such action may be in 

addition to any action or penalty prescribed by law.

(b) It is the responsibility of the employing agency to initiate appropriate disciplinary or 

corrective action in individual cases. However, corrective action may be ordered or 
Subpart A—General Provisions

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

7

disciplinary action recommended by the Director of the Office of Government Ethics under 

the procedures at part 2638 of this chapter.

(c) A violation of this part or of supplemental agency regulations, as such, does not create any 

right or benefit, substantive or procedural, enforceable at law by any person against the 

United States, its agencies, its officers or employees, or any other person. Thus, for 

example, an individual who alleges that an employee has failed to adhere to laws and 

regulations that provide equal opportunity regardless of race, color, religion, sex, national 

origin, age, or handicap is required to follow applicable statutory and regulatory 

procedures, including those of the Equal Employment Opportunity Commission.

§ 2635.107 Ethics advice.

(a) As required by §§ 2638.201 and 2638.202(b) of this chapter, each agency has a designated 

agency ethics official who, on the agency’s behalf, is responsible for coordinating and 

managing the agency’s ethics program, as well as an alternate. The designated agency 

ethics official has authority under § 2638.204 of this chapter to delegate certain 

responsibilities, including that of providing ethics counseling regarding the application of 

this part, to one or more deputy ethics officials.

(b) Employees who have questions about the application of this part or any supplemental 

agency regulations to particular situations should seek advice from an agency ethics 

official. Disciplinary action for violating this part or any supplemental agency regulations 

will not be taken against an employee who has engaged in conduct in good faith reliance 

upon the advice of an agency ethics official, provided that the employee, in seeking such 

advice, has made full disclosure of all relevant circumstances. Where the employee’s 

conduct violates a criminal statute, reliance on the advice of an agency ethics official 

cannot ensure that the employee will not be prosecuted under that statute. However, good 

faith reliance on the advice of an agency ethics official is a factor that may be taken into 

account by the Department of Justice in the selection of cases for prosecution. Disclosures 

made by an employee to an agency ethics official are not protected by an attorney-client 

privilege. An agency ethics official is required by 28 U.S.C. 535 to report any information 

he receives relating to a violation of the criminal code, title 18 of the United States Code.
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

8

SUBPART B—GIFTS FROM OUTSIDE SOURCES

§ 2635.201 Overview and considerations for declining otherwise permissible gifts.

(a) Overview. This subpart contains standards that prohibit an employee from soliciting or 

accepting any gift from a prohibited source or any gift given because of the employee’s 

official position, unless the item is excluded from the definition of a gift or falls within one 

of the exceptions set forth in this subpart.

(b) Considerations for declining otherwise permissible gifts.

(1) Every employee has a fundamental responsibility to the United States and its citizens 

to place loyalty to the Constitution, laws, and ethical principles above private gain. 

An employee’s actions should promote the public’s trust that this responsibility is 

being met. For this reason, employees should consider declining otherwise 

permissible gifts if they believe that a reasonable person with knowledge of the 

relevant facts would question the employee’s integrity or impartiality as a result of 

accepting the gift.

(2) An employee who is considering whether acceptance of a gift would lead a 

reasonable person with knowledge of the relevant facts to question his or her integrity 

or impartiality may consider, among other relevant factors, whether:

(i) The gift has a high market value;

(ii) The timing of the gift creates the appearance that the donor is seeking to 

influence an official action;

(iii) The gift was provided by a person who has interests that may be substantially 

affected by the performance or nonperformance of the employee’s official 

duties; and

(iv) Acceptance of the gift would provide the donor with significantly 

disproportionate access.

(3) Notwithstanding paragraph (b)(1) of this section, an employee who accepts a gift that 

qualifies for an exception under § 2635.204 does not violate this subpart or the 

Principles of Ethical Conduct set forth in § 2635.101(b).

(4) Employees who have questions regarding this subpart, including whether the 

employee should decline a gift that would otherwise be permitted under an exception 

found in § 2635.204, should seek advice from an agency ethics official.
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

9

Example 1 to paragraph (b): An employee of the Peace Corps is in charge of making 

routine purchases of office supplies. After a promotional presentation to highlight several 

new products, a vendor offers to buy the employee lunch, which costs less than $20. The 

employee is concerned that a reasonable person may question her impartiality in accepting 

the free lunch, as the timing of the offer indicates that the donor may be seeking to 

influence an official action and the company has interests that may be substantially 

affected by the performance or nonperformance of the employee’s duties. As such, although 

acceptance of the gift may be permissible under § 2635.204(a), the employee decides to 

decline the gift. 

§ 2635.202 General prohibition on solicitation or acceptance of gifts.

(a) Prohibition on soliciting gifts. Except as provided in this subpart, an employee may not, 

directly or indirectly:

(1) Solicit a gift from a prohibited source; or

(2) Solicit a gift to be given because of the employee’s official position.

(b) Prohibition on accepting gifts. Except as provided in this subpart, an employee may not, 

directly or indirectly:

(1) Accept a gift from a prohibited source; or

(2) Accept a gift given because of the employee’s official position.

(c) Relationship to illegal gratuities statute. A gift accepted pursuant to an exception found in 

this subpart will not constitute an illegal gratuity otherwise prohibited by 18 U.S.C. 

201(c)(1)(B), unless it is accepted in return for being influenced in the performance of an 

official act. As more fully described in § 2635.205(d)(1), an employee may not solicit or 

accept a gift if to do so would be prohibited by the Federal bribery statute, 18 U.S.C. 

201(b).

Example 1 to paragraph (c): A Government contractor who specializes in information 

technology software has offered an employee of the Department of Energy’s information 

technology acquisition division a $15 gift card to a local restaurant if the employee will 

recommend to the agency’s contracting officer that she select the contractor’s products 

during the next acquisition. Even though the gift card is less than $20, the employee may 

not accept the gift under § 2635.204(a) because it is conditional upon official action by the 

employee. Pursuant to §§ 2635.202(c) and 2635.205(a), notwithstanding any exception to 

the rule, an employee may not accept a gift in return for being influenced in the 

performance of an official act. 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

10

§ 2635.203 Definitions.

For purposes of this subpart, the following definitions apply:

(a) Agency has the meaning set forth in § 2635.102(a). However, for purposes of this subpart, 

an executive department, as defined in 5 U.S.C. 101, may, by supplemental agency 

regulation, designate as a separate agency any component of that department which the 

department determines exercises distinct and separate functions.

(b) Gift includes any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or 

other item having monetary value. It includes services as well as gifts of training, 

transportation, local travel, lodgings and meals, whether provided in-kind, by purchase of a 

ticket, payment in advance, or reimbursement after the expense has been incurred. The 

term excludes the following:

(1) Modest items of food and refreshments, such as soft drinks, coffee and donuts, 

offered other than as part of a meal;

(2) Greeting cards and items with little intrinsic value, such as plaques, certificates, and 

trophies, which are intended primarily for presentation;

Example 1 to paragraph (b)(2): After giving a speech at the facility of a 

pharmaceutical company, a Government employee is presented with a glass 

paperweight in the shape of a pill capsule with the name of the company’s latest drug 

and the date of the speech imprinted on the side. The employee may accept the 

paperweight because it is an item with little intrinsic value which is intended 

primarily for presentation. 

Example 2 to paragraph (b)(2): After participating in a panel discussion hosted by an 

international media company, a Government employee is presented with an 

inexpensive portable music player emblazoned with the media company’s logo. The 

portable music player has a market value of $25. The employee may not accept the 

portable music player as it has a significant independent use as a music player rather 

than being intended primarily for presentation. 

Example 3 to paragraph (b)(2): After giving a speech at a conference held by a 

national association of miners, a Department of Commerce employee is presented 

with a block of granite that is engraved with the association’s logo, a picture of the 

Appalachian Mountains, the date of the speech, and the employee’s name. The 

employee may accept this item because it is similar to a plaque, is designed primarily 

for presentation, and has little intrinsic value. 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

11

(3) Loans from banks and other financial institutions on terms generally available to the 

public;

(4) Opportunities and benefits, including favorable rates and commercial discounts, 

available to the public or to a class consisting of all Government employees or all 

uniformed military personnel, whether or not restricted on the basis of geographic 

considerations;

(5) Rewards and prizes given to competitors in contests or events, including random 

drawings, open to the public unless the employee’s entry into the contest or event is 

required as part of his official duties;

Example 1 to paragraph (b)(5): A Government employee is attending a free trade 

show on official time. The trade show is held in a public shopping area adjacent to 

the employee’s office building. The employee voluntarily enters a drawing at an 

individual vendor’s booth which is open to the public. She fills in an entry form on the 

vendor’s display table and drops it into the contest box. The employee may accept the 

resulting prize because entry into the contest was not required by or related to her 

official duties. 

Example 2 to paragraph (b)(5): Attendees at a conference, which is not open to the 

public, are entered in a drawing for a weekend getaway to Bermuda as a result of 

being registered for the conference. A Government employee who attends the 

conference in his official capacity could not accept the prize under paragraph (b)(5) 

of this section, as the event is not open to the public. 

(6) Pension and other benefits resulting from continued participation in an employee 

welfare and benefits plan maintained by a current or former employer;

(7) Anything which is paid for by the Government or secured by the Government under 

Government contract;

Example 1 to paragraph (b)(7): An employee at the Occupational Safety and Health 

Administration is assigned to travel away from her duty station to conduct an 

investigation of a collapse at a construction site. The employee’s agency is paying for 

her travel expenses, including her airfare. The employee may accept and retain travel 

promotional items, such as frequent flyer miles, received as a result of her official 

travel, to the extent permitted by 5 U.S.C. 5702, note, and 41 CFR part 301-53. 

(8) Free attendance to an event provided by the sponsor of the event to: 

(i) An employee who is assigned to present information on behalf of the agency at 

the event on any day when the employee is presenting;
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

12

(ii) An employee whose presence on any day of the event is deemed to be essential 

by the agency to the presenting employee’s participation in the event, provided 

that the employee is accompanying the presenting employee; and

(iii) The spouse or one other guest of the presenting employee on any day when the 

employee is presenting, provided that others in attendance will generally be 

accompanied by a spouse or other guest, the offer of free attendance for the 

spouse or other guest is unsolicited, and the agency designee, orally or in 

writing, has authorized the presenting employee to accept;

Example 1 to paragraph (b)(8): An employee of the Department of the Treasury who 

is assigned to participate in a panel discussion of economic issues as part of a oneday conference may accept the sponsor’s waiver of the conference fee. Under the 

separate authority of § 2635.204(a), the employee may accept a token of appreciation 

that has a market value of $20 or less. 

Example 2 to paragraph (b)(8): An employee of the Securities and Exchange 

Commission is assigned to present the agency’s views at a roundtable discussion of 

an ongoing working group. The employee may accept free attendance to the meeting 

under paragraph (b)(8) of this section because the employee has been assigned to 

present information at the meeting on behalf of the agency. If it is determined by the 

agency that it is essential that another employee accompany the presenting employee 

to the roundtable discussion, the accompanying employee may also accept free 

attendance to the meeting under paragraph (b)(8)(ii) of this section. 

Example 3 to paragraph (b)(8): An employee of the United States Trade and 

Development Agency is invited to attend a cocktail party hosted by a prohibited 

source. The employee believes that he will have an opportunity to discuss official 

matters with other attendees while at the event. Although the employee may 

voluntarily discuss official matters with other attendees, the employee has not been 

assigned to present information on behalf of the agency. The employee may not 

accept free attendance to the event under paragraph (b)(8) of this section. 

(9) Any gift accepted by the Government under specific statutory authority, including:

(i) Travel, subsistence, and related expenses accepted by an agency under the 

authority of 31 U.S.C. 1353 in connection with an employee’s attendance at a 

meeting or similar function relating to the employee’s official duties which take 

place away from the employee’s duty station, provided that the agency’s 

acceptance is in accordance with the implementing regulations at 41 CFR 

chapter 304; and

(ii) Other gifts provided in-kind which have been accepted by an agency under its 

agency gift acceptance statute; and
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

13

(10) Anything for which market value is paid by the employee.

(c) Market value means the cost that a member of the general public would reasonably expect 

to incur to purchase the gift. An employee who cannot ascertain the market value of a gift 

may estimate its market value by reference to the retail cost of similar items of like quality. 

The market value of a gift of a ticket entitling the holder to food, refreshments, 

entertainment, or any other benefit is deemed to be the face value of the ticket.

Example 1 to paragraph (c): An employee who has been given a watch inscribed with the 

corporate logo of a prohibited source may determine its market value based on her 

observation that a comparable watch, not inscribed with a logo, generally sells for about 

$50.

Example 2 to paragraph (c): During an official visit to a factory operated by a well-known 

athletic footwear manufacturer, an employee of the Department of Labor is offered a 

commemorative pair of athletic shoes manufactured at the factory. Although the cost 

incurred by the donor to manufacture the shoes was $17, the market value of the shoes 

would be the $100 that the employee would have to pay for the shoes on the open market. 

Example 3 to paragraph (c): A prohibited source has offered a Government employee a 

ticket to a charitable event consisting of a cocktail reception to be followed by an evening 

of chamber music. Even though the food, refreshments, and entertainment provided at the 

event may be worth only $20, the market value of the ticket is its $250 face value. 

Example 4 to paragraph (c): A company offers an employee of the Federal Communication 

Commission (FCC) free attendance for two to a private skybox at a ballpark to watch a 

major league baseball game. The skybox is leased annually by the company, which has 

business pending before the FCC. The skybox tickets provided to the employee do not have 

a face value. To determine the market value of the tickets, the employee must add the face 

value of two of the most expensive publicly available tickets to the game and the market 

value of any food, parking or other tangible benefits provided in connection with the gift of 

attendance that are not already included in the cost of the most expensive publicly 

available tickets. 

Example 5 to paragraph (c): An employee of the Department of Agriculture is invited to a 

reception held by a prohibited source. There is no entrance fee to the reception event or to 

the venue. To determine the market value of the gift, the employee must add the market 

value of any entertainment, food, beverages, or other tangible benefit provided to attendees 

in connection with the reception, but need not consider the cost incurred by the sponsor to 

rent or maintain the venue where the event is held. The employee may rely on a per-person 

cost estimate provided by the sponsor of the event, unless the employee or an agency 

designee has determined that a reasonable person would find that the estimate is clearly 

implausible. 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

14

(d) Prohibited source means any person who:

(1) Is seeking official action by the employee’s agency;

(2) Does business or seeks to do business with the employee’s agency;

(3) Conducts activities regulated by the employee’s agency;

(4) Has interests that may be substantially affected by performance or nonperformance of 

the employee’s official duties; or

(5) Is an organization a majority of whose members are described in paragraphs (d) (1) 

through (4) of this section.

(e) Given because of the employee’s official position. A gift is given because of the employee‘s 

official position if the gift is from a person other than an employee and would not have 

been given had the employee not held the status, authority, or duties associated with the 

employee’s Federal position.

Note to paragraph (e): Gifts between employees are subject to the limitations set forth in 

subpart C of this part.

Example 1 to paragraph (e): Where free season tickets are offered by an opera guild to all 

members of the Cabinet, the gift is offered because of their official positions. 

Example 2 to paragraph (e): Employees at a regional office of the Department of Justice 

(DOJ) work in Government-leased space at a private office building, along with various 

private business tenants. A major fire in the building during normal office hours causes a 

traumatic experience for all occupants of the building in making their escape, and it is the 

subject of widespread news coverage. A corporate hotel chain, which does not meet the 

definition of a prohibited source for DOJ, seizes the moment and announces that it will 

give a free night’s lodging to all building occupants and their families, as a public goodwill 

gesture. Employees of DOJ may accept, as this gift is not being given because of their 

Government positions. The donor’s motivation for offering this gift is unrelated to the DOJ 

employees’ status, authority, or duties associated with their Federal position, but instead is 

based on their mere presence in the building as occupants at the time of the fire.

(f) Indirectly solicited or accepted. A gift which is solicited or accepted indirectly includes a 

gift:

(1) Given with the employee’s knowledge and acquiescence to his parent, sibling, 

spouse, child, dependent relative, or a member of the employee’s household because 

of that person’s relationship to the employee, or
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

15

(2) Given to any other person, including any charitable organization, on the basis of 

designation, recommendation, or other specification by the employee, except the 

employee has not indirectly solicited or accepted a gift by the raising of funds or 

other support for a charitable organization if done in accordance with § 2635.808.

Example 1 to paragraph (f)(2): An employee who must decline a gift of a personal 

computer pursuant to this subpart may not suggest that the gift be given instead to 

one of five charitable organizations whose names are provided by the employee. 

(g) Free attendance includes waiver of all or part of the fee for an event or the provision of 

food, refreshments, entertainment, instruction or materials furnished to all attendees as an 

integral part of the event. It does not include travel expenses, lodgings, or entertainment 

collateral to the event. It does not include meals taken other than in a group setting with all 

other attendees, unless the employee is a presenter at the event and is invited to a separate 

meal for participating presenters that is hosted by the sponsor of the event. Where the offer 

of free attendance has been extended to an accompanying spouse or other guest, the market 

value of the gift of free attendance includes the market value of free attendance by both the 

employee and the spouse or other guest.

§ 2635.204 Exceptions to the prohibition for acceptance of certain gifts.

Subject to the limitations in § 2635.205, this section establishes exceptions to the prohibitions set 

forth in § 2635.202(a) and (b). Even though acceptance of a gift may be permitted by one of the 

exceptions contained in this section, it is never inappropriate and frequently prudent for an 

employee to decline a gift if acceptance would cause a reasonable person to question the 

employee’s integrity or impartiality. Section 2635.201(b) identifies considerations for declining 

otherwise permissible gifts.

(a) Gifts of $20 or less. An employee may accept unsolicited gifts having an aggregate market 

value of $20 or less per source per occasion, provided that the aggregate market value of 

individual gifts received from any one person under the authority of this paragraph (a) does 

not exceed $50 in a calendar year. This exception does not apply to gifts of cash or of 

investment interests such as stock, bonds, or certificates of deposit. Where the market value 

of a gift or the aggregate market value of gifts offered on any single occasion exceeds $20, 

the employee may not pay the excess value over $20 in order to accept that portion of the 

gift or those gifts worth $20. Where the aggregate value of tangible items offered on a 

single occasion exceeds $20, the employee may decline any distinct and separate item in 

order to accept those items aggregating $20 or less.

Example 1 to paragraph (a): An employee of the Securities and Exchange Commission and 

his spouse have been invited by a representative of a regulated entity to a community 

theater production, tickets to which have a face value of $30 each. The aggregate market 

value of the gifts offered on this single occasion is $60, $40 more than the $20 amount that 

may be accepted for a single event or presentation. The employee may not accept the gift of 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

16

the evening of entertainment. He and his spouse may attend the play only if he pays the full 

$60 value of the two tickets. 

Example 2 to paragraph (a): An employee of the National Geospatial-Intelligence Agency 

has been invited by an association of cartographers to speak about her agency’s role in the 

evolution of missile technology. At the conclusion of her speech, the association presents 

the employee a framed map with a market value of $18 and a ceramic mug that has a 

market value of $15. The employee may accept the map or the mug, but not both, because 

the aggregate value of these two tangible items exceeds $20. 

Example 3 to paragraph (a): On four occasions during the calendar year, an employee of 

the Defense Logistics Agency (DLA) was given gifts worth $10 each by four employees of a 

corporation that is a DLA contractor. For purposes of applying the yearly $50 limitation 

on gifts of $20 or less from any one person, the four gifts must be aggregated because a 

person is defined at § 2635.102(k) to mean not only the corporate entity, but its officers 

and employees as well. However, for purposes of applying the $50 aggregate limitation, 

the employee would not have to include the value of a birthday present received from his 

cousin, who is employed by the same corporation, if he can accept the birthday present 

under the exception at paragraph (b) of this section for gifts based on a personal 

relationship. 

Example 4 to paragraph (a): Under the authority of 31 U.S.C. 1353 for agencies to accept 

payments from non-Federal sources in connection with attendance at certain meetings or 

similar functions, the Environmental Protection Agency (EPA) has accepted an 

association’s gift of travel expenses and conference fees for an employee to attend a 

conference on the long-term effect of radon exposure. While at the conference, the 

employee may accept a gift of $20 or less from the association or from another person 

attending the conference even though it was not approved in advance by the EPA. Although 

31 U.S.C. 1353 is the authority under which the EPA accepted the gift to the agency of 

travel expenses and conference fees, a gift of $20 or less accepted under paragraph (a) of 

this section is a gift to the employee rather than to her employing agency. 

Example 5 to paragraph (a): During off-duty time, an employee of the Department of 

Defense (DoD) attends a trade show involving companies that are DoD contractors. He is

offered software worth $15 at X Company’s booth, a calendar worth $12 at Y Company’s 

booth, and a deli lunch worth $8 from Z Company. The employee may accept all three of 

these items because they do not exceed $20 per source, even though they total more than 

$20 at this single occasion. 

Example 6 to paragraph (a): An employee of the Department of Defense (DoD) is being 

promoted to a higher level position in another DoD office. Six individuals, each employed 

by a different defense contractor, who have worked with the DoD employee over the years, 

decide to act in concert to pool their resources to buy her a nicer gift than each could buy 

her separately. Each defense contractor employee contributes $20 to buy a desk clock for 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

17

the DoD employee that has a market value of $120. Although each of the contributions 

does not exceed the $20 limit, the employee may not accept the $120 gift because it is a 

single gift that has a market value in excess of $20. 

Example 7 to paragraph (a): During a holiday party, an employee of the Department of 

State is given a $15 store gift card to a national coffee chain by an agency contractor. The 

employee may accept the card as the market value is less than $20. The employee could 

not, however, accept a gift card that is issued by a credit card company or other financial 

institution, because such a card is equivalent to a gift of cash. 

(b) Gifts based on a personal relationship. An employee may accept a gift given by an 

individual under circumstances which make it clear that the gift is motivated by a family 

relationship or personal friendship rather than the position of the employee. Relevant 

factors in making such a determination include the history and nature of the relationship 

and whether the family member or friend personally pays for the gift.

Example 1 to paragraph (b): An employee of the Federal Deposit Insurance Corporation 

(FDIC) has been dating an accountant employed by a member bank. As part of its “WorkLife Balance” program, the bank has given each employee in the accountant’s division two 

tickets to a professional basketball game and has urged each to invite a family member or 

friend to share the evening of entertainment. Under the circumstances, the FDIC employee 

may accept the invitation to attend the game. Even though the tickets were initially 

purchased by the member bank, they were given without reservation to the accountant to 

use as she wished, and her invitation to the employee was motivated by their personal 

friendship. 

Example 2 to paragraph (b): Three partners in a law firm that handles corporate mergers 

have invited an employee of the Federal Trade Commission (FTC) to join them in a golf 

tournament at a private club at the firm’s expense. The entry fee is $500 per foursome. The 

employee cannot accept the gift of one-quarter of the entry fee even though he and the 

three partners have developed an amicable relationship as a result of the firm’s dealings 

with the FTC. As evidenced in part by the fact that the fees are to be paid by the firm, it is 

not a personal friendship but a business relationship that is the motivation behind the 

partners’ gift. 

Example 3 to paragraph (b): A Peace Corps employee enjoys using a social media site on 

the internet in his personal capacity outside of work. He has used the site to keep in touch 

with friends, neighbors, coworkers, professional contacts, and other individuals he has met 

over the years through both work and personal activities. One of these individuals works 

for a contractor that provides language services to the Peace Corps. The employee was 

acting in his official capacity when he met the individual at a meeting to discuss a matter 

related to the contract between their respective employers. Thereafter, the two 

communicated occasionally regarding contract matters. They later also granted one 

another access to join their social media networks through their respective social media 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

18

accounts. However, they did not communicate further in their personal capacities, carry on 

extensive personal interactions, or meet socially outside of work. One day, the individual, 

whose employer continues to serve as a Peace Corps contractor, contacts the employee to 

offer him a pair of concert tickets worth $30 apiece. Although the employee and the 

individual are connected through social media, the circumstances do not demonstrate that

the gift was clearly motivated by a personal relationship, rather than the position of the 

employee, and therefore the employee may not accept the gift pursuant to paragraph (b) of 

this section. 

(c) Discounts and similar benefits. In addition to those opportunities and benefits excluded 

from the definition of a gift by § 2635.203(b)(4), an employee may accept:

(1) A reduction or waiver of the fees for membership or other fees for participation in 

organization activities offered to all Government employees or all uniformed military 

personnel by professional organizations if the only restrictions on membership relate 

to professional qualifications; and

(2) Opportunities and benefits, including favorable rates, commercial discounts, and free

attendance or participation not precluded by paragraph (c)(3) of this section:

(i) Offered to members of a group or class in which membership is unrelated to 

Government employment;

(ii) Offered to members of an organization, such as an employees’ association or 

agency credit union, in which membership is related to Government 

employment if the same offer is broadly available to large segments of the 

public through organizations of similar size; or

(iii) Offered by a person who is not a prohibited source to any group or class that is 

not defined in a manner that specifically discriminates among Government 

employees on the basis of type of official responsibility or on a basis that favors 

those of higher rank or rate of pay.

i.

Example 1 to paragraph (c)(2): A computer company offers a discount on the 

purchase of computer equipment to all public and private sector computer 

procurement officials who work in organizations with over 300 employees. An 

employee who works as the computer procurement official for a Government agency 

could not accept the discount to purchase the personal computer under the exception 

in paragraph (c)(2)(i) of this section. Her membership in the group to which the 

discount is offered is related to Government employment because her membership is 

based on her status as a procurement official with the Government. 

Example 2 to paragraph (c)(2): An employee of the Consumer Product Safety 

Commission (CPSC) may accept a discount of $50 on a microwave oven offered by 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

19

the manufacturer to all members of the CPSC employees’ association. Even though 

the CPSC is currently conducting studies on the safety of microwave ovens, the $50 

discount is a standard offer that the manufacturer has made broadly available 

through a number of employee associations and similar organizations to large 

segments of the public. 

Example 3 to paragraph (c)(2): An Assistant Secretary may not accept a local country 

club’s offer of membership to all members of Department Secretariats which includes 

a waiver of its $5,000 membership initiation fee. Even though the country club is not 

a prohibited source, the offer discriminates in favor of higher ranking officials. 

(3) An employee may not accept for personal use any benefit to which the Government is 

entitled as the result of an expenditure of Government funds, unless authorized by 

statute or regulation (e.g., 5 U.S.C. 5702, note, regarding frequent flyer miles).

Example 1 to paragraph (c)(3): The administrative officer for a field office of U.S. 

Immigration and Customs Enforcement (ICE) has signed an order to purchase 50 

boxes of photocopy paper from a supplier whose literature advertises that it will give 

a free briefcase to anyone who purchases 50 or more boxes. Because the paper was 

purchased with ICE funds, the administrative officer cannot keep the briefcase which, 

if claimed and received, is Government property. 

(d) Awards and honorary degrees. 

(1) Awards. An employee may accept a bona fide award for meritorious public service or 

achievement and any item incident to the award, provided that:

(i) The award and any item incident to the award are not from a person who has 

interests that may be substantially affected by the performance or 

nonperformance of the employee’s official duties, or from an association or 

other organization if a majority of its members have such interests; and

(ii) If the award or any item incident to the award is in the form of cash or an 

investment interest, or if the aggregate value of the award and any item incident 

to the award, other than free attendance to the event provided to the employee 

and to members of the employee’s family by the sponsor of the event, exceeds 

$200, the agency ethics official has made a written determination that the award 

is made as part of an established program of recognition.

Example 1 to paragraph (d)(1): Based on a written determination by an agency ethics 

official that the prize meets the criteria set forth in paragraph (d)(2) of this section, 

an employee of the National Institutes of Health (NIH) may accept the Nobel Prize for 

Medicine, including the cash award which accompanies the prize, even though the 

prize was conferred on the basis of laboratory work performed at NIH. 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

20

Example 2 to paragraph (d)(1): A defense contractor, ABC Systems, has an annual 

award program for the outstanding public employee of the year. The award includes 

a cash payment of $1,000. The award program is wholly funded to ensure its 

continuation on a regular basis for the next twenty years and selection of award 

recipients is made pursuant to written standards. An employee of the Department of 

the Air Force, who has duties that include overseeing contract performance by ABC 

Systems, is selected to receive the award. The employee may not accept the cash 

award because ABC Systems has interests that may be substantially affected by the 

performance or nonperformance of the employee’s official duties.

Example 3 to paragraph (d)(1): An ambassador selected by a nonprofit organization 

as a recipient of its annual award for distinguished service in the interest of world 

peace may, together with his spouse and children, attend the awards ceremony dinner 

and accept a crystal bowl worth $200 presented during the ceremony. However, 

where the organization has also offered airline tickets for the ambassador and his 

family to travel to the city where the awards ceremony is to be held, the aggregate 

value of the tickets and the crystal bowl exceeds $200, and he may accept only upon a 

written determination by the agency ethics official that the award is made as part of 

an established program of recognition. 

(2) Established program of recognition. An award and an item incident to the award are 

made pursuant to an established program of recognition if:

(i) Awards have been made on a regular basis or, if the program is new, there is a 

reasonable basis for concluding that awards will be made on a regular basis 

based on funding or funding commitments; and

(ii) Selection of award recipients is made pursuant to written standards 

(3) Honorary degrees. An employee may accept an honorary degree from an institution 

of higher education, as defined at 20 U.S.C. 1001, or from a similar foreign institution 

of higher education, based on a written determination by an agency ethics official that 

the timing of the award of the degree would not cause a reasonable person to question 

the employee’s impartiality in a matter affecting the institution.

Note to paragraph (d)(3): When the honorary degree is offered by a foreign 

institution of higher education, the agency may need to make a separate determination 

as to whether the institution of higher education is a foreign government for purposes 

of the Emoluments Clause of the U.S. Constitution (U.S. Const., art. I, sec. 9, cl. 8), 

which forbids employees from accepting emoluments, presents, offices, or titles from 

foreign governments, without the consent of Congress. The Foreign Gifts and 

Decorations Act, 5 U.S.C. 7342, however, may permit the acceptance of honorary 

degrees in some circumstances.
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

21

Example 1 to paragraph (d)(3): A well-known university located in the United States 

wishes to give an honorary degree to the Secretary of Labor. The Secretary may 

accept the honorary degree only if an agency ethics official determines in writing that 

the timing of the award of the degree would not cause a reasonable person to 

question the Secretary’s impartiality in a matter affecting the university. 

(4) Presentation events. An employee who may accept an award or honorary degree 

pursuant to paragraph (d)(1) or (3) of this section may also accept free attendance to 

the event provided to the employee and to members of the employee's family by the 

sponsor of an event. In addition, the employee may also accept unsolicited offers of 

travel to and from the event provided to the employee and to members of the 

employee's family by the sponsor of the event. Travel expenses accepted under this 

paragraph (d)(4) must be added to the value of the award for purposes of determining 

whether the aggregate value of the award exceeds $200.

(e) Gifts based on outside business or employment relationships. An employee may accept 

meals, lodgings, transportation and other benefits:

(1) Resulting from the business or employment activities of an employee’s spouse when 

it is clear that such benefits have not been offered or enhanced because of the 

employee’s official position;

Example 1 to paragraph (e)(1): A Department of Agriculture employee whose spouse 

is a computer programmer employed by a Department of Agriculture contractor may 

attend the company’s annual retreat for all of its employees and their families held at 

a resort facility. However, under § 2635.502, the employee may be disqualified from 

performing official duties affecting her spouse’s employer.

Example 2 to paragraph (e)(1): Where the spouses of other clerical personnel have 

not been invited, an employee of the Defense Contract Audit Agency whose spouse is 

a clerical worker at a defense contractor may not attend the contractor’s annual 

retreat in Hawaii for corporate officers and members of the board of directors, even 

though his spouse received a special invitation for herself and the employee. 

(2) Resulting from the employee’s outside business or employment activities when it is 

clear that such benefits are based on the outside business or employment activities 

and have not been offered or enhanced because of the employee’s official status;

Example 1 to paragraph (e)(2): The members of an Army Corps of Engineers 

environmental advisory committee that meets six times per year are special 

Government employees. A member who has a consulting business may accept an 

invitation to a $50 dinner from her corporate client, an Army construction contractor, 

unless, for example, the invitation was extended in order to discuss the activities of 

the advisory committee.
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

22

(3) Customarily provided by a prospective employer in connection with bona fide

employment discussions. If the prospective employer has interests that could be 

affected by performance or nonperformance of the employee’s duties, acceptance is 

permitted only if the employee first has complied with the disqualification 

requirements of subpart F of this part applicable when seeking employment; or

Example 1 to paragraph (e)(3): An employee of the Federal Communications 

Commission with responsibility for drafting regulations affecting all cable television 

companies wishes to apply for a job opening with a cable television holding company. 

Once she has properly disqualified herself from further work on the regulations as 

required by subpart F of this part, she may enter into employment discussions with 

the company and may accept the company’s offer to pay for her airfare, hotel, and 

meals in connection with an interview trip.

(4) Provided by a former employer to attend a reception or similar event when other 

former employees have been invited to attend, the invitation and benefits are based on 

the former employment relationship, and it is clear that such benefits have not been 

offered or enhanced because of the employee’s official position.

Example 1 to paragraph (e)(4): An employee of the Department of the Army is invited 

by her former employer, an Army contractor, to attend its annual holiday dinner 

party. The former employer traditionally invites both its current and former 

employees to the holiday dinner regardless of their current employment activities. 

Under these circumstances, the employee may attend the dinner because the dinner 

invitation is a result of the employee’s former outside employment activities, other 

former employees have been asked to attend, and the gift is not offered because of the 

employee’s official position.

(5) For purposes of paragraphs (e)(1) through (4) of this section, “employment” means 

any form of non-Federal employment or business relationship involving the provision 

of personal services. 

(f) Gifts in connection with political activities permitted by the Hatch Act Reform 

Amendments. An employee who, in accordance with the Hatch Act Reform Amendments 

of 1993, at 5 U.S.C. 7323, may take an active part in political management or in political 

campaigns, may accept meals, lodgings, transportation, and other benefits, including free 

attendance at events, for the employee and an accompanying spouse or other guests, when 

provided, in connection with such active participation, by a political organization described 

in 26 U.S.C. 527(e). Any other employee, such as a security officer, whose official duties 

require him or her to accompany an employee to a political event, may accept meals, free 

attendance, and entertainment provided at the event by such an organization.

Example 1 to paragraph (f): The Secretary of the Department of Health and Human 

Services may accept an airline ticket and hotel accommodations furnished by the campaign 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

23

committee of a candidate for the United States Senate in order to give a speech in support 

of the candidate.

(g) Gifts of free attendance at widely attended gatherings events —

(1) Authorization. When authorized in writing by the agency designee pursuant to 

paragraph (g)(3) of this section, an employee may accept an unsolicited gift of free 

attendance at all or appropriate parts of a widely attended gathering. For an employee 

who is subject to a leave system, attendance at the event will be on the employee’s 

own time or, if authorized by the employee’s agency, on excused absence pursuant to 

applicable guidelines for granting such absence, or otherwise without charge to the 

employee’s leave account.

(2) Widely attended gatherings. A gathering is widely attended if it is expected that a 

large number of persons will attend, that persons with a diversity of views or interests 

will be present, for example, if it is open to members from throughout the interested 

industry or profession or if those in attendance represent a range of persons interested 

in a given matter, and that there will be an opportunity to exchange ideas and views 

among invited persons.

(3) Written authorization by the agency designee. The agency designee may authorize an 

employee or employees to accept a gift of free attendance at all or appropriate parts of 

a widely attended gathering only if the agency designee issues a written determination 

after finding that:

(i) The event is a widely attended gathering, as set forth in paragraph (g)(2) of this 

section;

(ii) The employee’s attendance at the event is in the agency’s interest because it will 

further agency programs or operations;

(iii) The agency’s interest in the employee’s attendance outweighs the concern that 

the employee may be, or may appear to be, improperly influenced in the 

performance of official duties; and

(iv) If a person other than the sponsor of the event invites or designates the employee 

as the recipient of the gift of free attendance and bears the cost of that gift, the 

event is expected to be attended by more than 100 persons and the value of the 

gift of free attendance does not exceed $375.

(4) Determination of agency interest. In determining whether the agency’s interest in the 

employee’s attendance outweighs the concern that the employee may be, or may 

appear to be, improperly influenced in the performance of official duties, the agency 

designee may consider relevant factors including:
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

24

(i) The importance of the event to the agency;

(ii) The nature and sensitivity of any pending matter affecting the interests of the 

person who extended the invitation and the significance of the employee’s role 

in any such matter;

(iii) The purpose of the event;

(iv) The identity of other expected participants;

(v) Whether acceptance would reasonably create the appearance that the donor is 

receiving preferential treatment;

(vi) Whether the Government is also providing persons with views or interests that 

differ from those of the donor with access to the Government; and

(vii) The market value of the gift of free attendance.

(5) Cost provided by person other than the sponsor of the event. The cost of the 

employee’s attendance will be considered to be provided by a person other than the 

sponsor of the event where such person designates the employee to be invited and 

bears the cost of the employee’s attendance through a contribution or other payment 

intended to facilitate the employee’s attendance. Payment of dues or a similar 

assessment to a sponsoring organization does not constitute a payment intended to 

facilitate a particular employee’s attendance.

(6) Accompanying spouse or other guest. When others in attendance will generally be 

accompanied by a spouse or other guest, and where the invitation is from the same 

person who has invited the employee, the agency designee may authorize an 

employee to accept an unsolicited invitation of free attendance to an accompanying 

spouse or one other accompanying guest to participate in all or a portion of the event 

at which the employee’s free attendance is permitted under paragraph (g)(1) this 

section. The authorization required by this paragraph (g)(6) must be provided in 

writing.

Example 1 to paragraph (g): An aerospace industry association that is a prohibited source 

sponsors an industry-wide, two-day seminar for which it charges a fee of $800 and 

anticipates attendance of approximately 400. An Air Force contractor pays $4,000 to the 

association so that the association can extend free invitations to five Air Force officials 

designated by the contractor. The Air Force officials may not accept the gifts of free 

attendance because (a) the contractor, rather than the association, provided the cost of 

their attendance; (b) the contractor designated the specific employees to receive the gift of 

free attendance; and (c) the value of the gift exceeds $375 per employee. 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

25

Example 2 to paragraph (g): An aerospace industry association that is a prohibited source 

sponsors an industry-wide, two-day seminar for which it charges a fee of $25 and 

anticipates attendance of approximately 50. An Air Force contractor pays $125 to the 

association so that the association can extend free invitations to five Air Force officials 

designated by the contractor. The Air Force officials may not accept the gifts of free 

attendance because (a) the contractor, rather than the association, provided the cost of 

their attendance; (b) the contractor designated the specific employees to receive the gift of 

free attendance; and (c) the event was not expected to be attended by more than 100 

persons. 

Example 3 to paragraph (g): An aerospace industry association that is a prohibited source 

sponsors an industry-wide, two-day seminar for which it charges a fee of $800 and 

anticipates attendance of approximately 400. An Air Force contractor pays $4,000 in order 

that the association might invite any five Federal employees. An Air Force official to whom 

the sponsoring association, rather than the contractor, extended one of the five invitations 

could attend if the employee’s participation were determined to be in the interest of the 

agency and he received a written authorization.

Example 4 to paragraph (g): An employee of the Department of Transportation is invited by 

a news organization to an annual press dinner sponsored by an association of press 

organizations. Tickets for the event cost $375 per person and attendance is limited to 400 

representatives of press organizations and their guests. If the employee’s attendance is 

determined to be in the interest of the agency and she receives a written authorization from 

the agency designee, she may accept the invitation from the news organization because 

more than 100 persons will attend and the cost of the ticket does not exceed $375. 

However, if the invitation were extended to the employee and an accompanying guest, the 

employee’s guest could not be authorized to attend for free because the market value of the 

gift of free attendance would exceed $375.

Example 5 to paragraph (g): An employee of the Department of Energy (DOE) and his 

spouse have been invited by a major utility executive to a small dinner party. A few other 

officials of the utility and their spouses or other guests are also invited, as is a 

representative of a consumer group concerned with utility rates and her spouse. The DOE 

official believes the dinner party will provide him an opportunity to socialize with and get 

to know those in attendance. The employee may not accept the free invitation under this 

exception, even if his attendance could be determined to be in the interest of the agency. 

The small dinner party is not a widely attended gathering. Nor could the employee be 

authorized to accept even if the event were instead a corporate banquet to which forty 

company officials and their spouses or other guests were invited. In this second case, 

notwithstanding the larger number of persons expected (as opposed to the small dinner 

party just noted) and despite the presence of the consumer group representative and her 

spouse who are not officials of the utility, those in attendance would still not represent a 

diversity of views or interests. Thus, the company banquet would not qualify as a widely 

attended gathering under those circumstances either.
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

26

Example 6 to paragraph (g): An Assistant U.S. Attorney is invited to attend a luncheon 

meeting of a local bar association to hear a distinguished judge lecture on cross-examining 

expert witnesses. Although members of the bar association are assessed a $15 fee for the 

meeting, the Assistant U.S. Attorney may accept the bar association’s offer to attend for 

free, even without a determination of agency interest. The gift can be accepted under the 

$20 gift exception at paragraph (a) of this section.

Example 7 to paragraph (g): An employee of the Department of the Interior authorized to 

speak on the first day of a four-day conference on endangered species may accept the 

sponsor’s waiver of the conference fee for the first day of the conference under § 

2635.203(b)(8). If the conference is widely attended, the employee may be authorized to 

accept the sponsor’s offer to waive the attendance fee for the remainder of the conference if 

the agency designee has made a written determination that attendance is in the agency’s 

interest.

Example 8 to paragraph (g): A military officer has been approved to attend a widely 

attended gathering, pursuant to paragraph (g) of this section, that will be held in the same 

city as the officer’s duty station. The defense contractor sponsoring the event has offered to 

transport the officer in a limousine to the event. The officer may not accept the offer of 

transportation because the definition of “free attendance” set forth in § 2635.203(g) 

excludes travel, and the market value of the transportation would exceed $20.

(h) Social invitation. An employee may accept food, refreshments, and entertainment, not 

including travel or lodgings, for the employee and an accompanying spouse or other guests, 

at a social event attended by several persons if:

(1) The invitation is unsolicited and is from a person who is not a prohibited source; 

(2) No fee is charged to any person in attendance; and

(3) If either the sponsor of the event or the person extending the invitation to the 

employee is not an individual, the agency designee has made a written determination 

after finding that the employee’s attendance would not cause a reasonable person with 

knowledge of the relevant facts to question the employee’s integrity or impartiality, 

consistent with § 2635.201(b).

Example 1 to paragraph (h): An employee of the White House Press Office has been invited 

to a cocktail party given by a noted Washington hostess who is not a prohibited source. The 

employee may attend even though he has only recently been introduced to the hostess and 

suspects that he may have been invited because of his official position.

(i) Meals, refreshments and entertainment in foreign areas. An employee assigned to duty in, 

or on official travel to, a foreign area as defined in 41 CFR 301–7.3(c) may accept food, 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

27

refreshments or entertainment in the course of a breakfast, luncheon, dinner or other 

meeting or event provided:

(1) The market value in the foreign area of the food, refreshments or entertainment 

provided at the meeting or event, as converted to U.S. dollars, does not exceed the per 

diem rate for the foreign area specified in the U.S. Department of State’s Maximum 

Per Diem Allowances for Foreign Areas, Per Diem Supplement Section 925 to the 

Standardized Regulations (GC-FA), available on the Internet at www.state.gov;

(2) There is participation in the meeting or event by non-U.S. citizens or by 

representatives of foreign governments or other foreign entities;

(3) Attendance at the meeting or event is part of the employee’s official duties to obtain 

information, disseminate information, promote the export of U.S. goods and services, 

represent the United States, or otherwise further programs or operations of the agency 

or the U.S. mission in the foreign area; and

(4) The gift of meals, refreshments, or entertainment is from a person other than a foreign 

government as defined in 5 U.S.C. 7342(a)(2).

Example 1 to paragraph (i): A number of local business owners in a developing country are 

eager for a U.S. company to locate a manufacturing facility in their province. An official of 

the Overseas Private Investment Corporation may accompany the visiting vice president of 

the U.S. company to a dinner meeting hosted by the business owners at a province 

restaurant where the market value of the food and refreshments does not exceed the per 

diem rate for that country.

(j) Gifts to the President or Vice President. Because of considerations relating to the conduct 

of their offices, including those of protocol and etiquette, the President or the Vice 

President may accept any gift on his or her own behalf or on behalf of any family member, 

provided that such acceptance does not violate § 2635.205(a) or (b), 18 U.S.C. 201(b) or 

201(c)(3), or the Constitution of the United States.

(k) Gifts authorized by supplemental agency regulation. An employee may accept any gift 

when acceptance of the gift is specifically authorized by a supplemental agency regulation 

issued with the concurrence of the Office of Government Ethics, pursuant to § 2635.105.

(l) Gifts accepted under specific statutory authority. The prohibitions on acceptance of gifts 

from outside sources contained in this subpart do not apply to any item which a statute 

specifically authorizes an employee to accept. Gifts which may be accepted by an 

employee under the authority of specific statutes include, but are not limited to:

(1) Free attendance, course or meeting materials, transportation, lodgings, food and 

refreshments or reimbursements therefor incident to training or meetings when 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

28

accepted by the employee under the authority of 5 U.S.C. 4111. The employee’s 

acceptance must be approved by the agency in accordance with part 410 of this title; 

or

(2) Gifts from a foreign government or international or multinational organization, or its 

representative, when accepted by the employee under the authority of the Foreign 

Gifts and Decorations Act, 5 U.S.C. 7342. As a condition of acceptance, an employee 

must comply with requirements imposed by the agency’s regulations or procedures 

implementing that Act.

(m) Gifts of informational materials.

(1) An employee may accept unsolicited gifts of informational materials, provided that:

(i) The aggregate market value of all informational materials received from any 

one person does not exceed $100 in a calendar year; or

(ii) If the aggregate market value of all informational materials from the same 

person exceeds $100 in a calendar year, an agency designee has made a written 

determination after finding that acceptance by the employee would not be 

inconsistent with the standard set forth in § 2635.201(b).

(2) Informational materials are writings, recordings, documents, records, or other items 

that:

(i) Are educational or instructive in nature;

(ii) Are not primarily created for entertainment, display, or decoration, and

(iii) Contain information that relates in whole or in part to the following categories:

(A) The employee’s official duties or position, profession, or field of study;

(B) A general subject matter area, industry, or economic sector affected by or 

involved in the programs or operations of the agency; or

(C) Another topic of interest to the agency or its mission.

Example 1 to paragraph (m): An analyst at the Agricultural Research Service receives an 

edition of an agricultural research journal in the mail from a consortium of private 

farming operations concerned with soil toxicity. The journal edition has a market value of 

$75. The analyst may accept the gift.
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

29

Example 2 to paragraph (m): An inspector at the Mine Safety and Health Administration 

receives a popular novel with a market value of $25 from a mine operator. Because the 

novel is primarily for entertainment purposes, the inspector may not accept the gift. 

Example 3 to paragraph (m): An employee at the Department of the Army is offered an 

encyclopedia on cyberwarfare from a prohibited source. The cost of the encyclopedia is far 

in excess of $100. The agency designee determines that acceptance of the gift would be 

inconsistent with the standard set out in § 2635.201(b). The employee may not accept the 

gift under paragraph (m) of this section.

§ 2635.205 Limitations on use of exceptions.

Notwithstanding any exception provided in this subpart, other than § 2635.204(j), an employee 

may not:

(a) Accept a gift in return for being influenced in the performance of an official act;

(b) Use, or permit the use of, the employee’s Government position, or any authority associated 

with public office, to solicit or coerce the offering of a gift;

(c) Accept gifts from the same or different sources on a basis so frequent that a reasonable 

person would be led to believe the employee is using the employee’s public office for 

private gain;

Example 1 to paragraph (c): A purchasing agent for a Department of Veterans Affairs 

medical center routinely deals with representatives of pharmaceutical manufacturers who 

provide information about new company products. Because of his crowded calendar, the 

purchasing agent has offered to meet with manufacturer representatives during his lunch 

hours Tuesdays through Thursdays, and the representatives routinely arrive at the 

employee’s office bringing a sandwich and a soft drink for the employee. Even though the 

market value of each of the lunches is less than $6 and the aggregate value from any one 

manufacturer does not exceed the $50 aggregate limitation in § 2635.204(a) on gifts of $20 

or less, the practice of accepting even these modest gifts on a recurring basis is improper.

(d) Accept a gift in violation of any statute; relevant statutes applicable to all employees 

include, but are not limited to:

(1) 18 U.S.C. 201(b), which prohibits a public official from, directly or indirectly, 

corruptly demanding, seeking, receiving, accepting, or agreeing to receive or accept 

anything of value personally or for any other person or entity in return for being 

influenced in the performance of an official act; being influenced to commit or aid in 

committing, or to collude in, or allow, any fraud, or make opportunity for the 

commission of any fraud, on the United States; or for being induced to do or omit to 

do any action in violation of his or her official duty. As used in 18 U.S.C. 201(b), the 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

30

term “public official” is broadly construed and includes regular and special 

Government employees as well as all other Government officials; and

(2) 18 U.S.C. 209, which prohibits an employee, other than a special Government 

employee, from receiving any salary or any contribution to or supplementation of 

salary from any source other than the United States as compensation for services as a 

Government employee. The statute contains several specific exceptions to this 

general prohibition, including an exception for contributions made from the treasury 

of a State, county, or municipality;

(e) Accept a gift in violation of any Executive Order; or

(f) Accept any gift when acceptance of the gift is specifically prohibited by a supplemental 

agency regulation issued with the concurrence of the Office of Government Ethics, 

pursuant to § 2635.105.

§ 2635.206 Proper disposition of prohibited gifts.

(a) Unless a gift is accepted by an agency acting under specific statutory authority, an 

employee who has received a gift that cannot be accepted under this subpart must dispose 

of the gift in accordance with the procedures set forth in this section. The employee must 

promptly complete the authorized disposition of the gift. The obligation to dispose of a gift 

that cannot be accepted under this subpart is independent of an agency’s decision regarding 

corrective or disciplinary action under § 2635.106.

(1) Gifts of tangible items. The employee must promptly return any tangible item to the 

donor or pay the donor its market value; or, in the case of a tangible item with a 

market value of $100 or less, the employee may destroy the item. An employee who 

cannot ascertain the actual market value of an item may estimate its market value by 

reference to the retail cost of similar items of like quality.

Example 1 to paragraph (a)(1): A Department of Commerce employee received a $25 

T-shirt from a prohibited source after providing training at a conference. Because the 

gift would not be permissible under an exception to this subpart, the employee must 

either return or destroy the T-shirt or promptly reimburse the donor $25. Destruction 

may be carried out by physical destruction or by permanently discarding the T-shirt 

by placing it in the trash. 

Example 2 to paragraph (a)(1): To avoid public embarrassment to the seminar 

sponsor, an employee of the National Park Service did not decline a barometer worth 

$200 given at the conclusion of his speech on Federal lands policy. To comply with 

this section, the employee must either promptly return the barometer or pay the donor 

the market value of the gift. Alternatively, the National Park Service may choose to 
Subpart B—Gifts from Outside Sources

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

31

accept the gift if permitted under specific statutory gift acceptance authority. The 

employee may not destroy this gift, as the market value is in excess of $100. 

(2) Gifts of perishable items. When it is not practical to return a tangible item in 

accordance with paragraph (a)(1) of this section because the item is perishable, the 

employee may, at the discretion of the employee’s supervisor or the agency designee, 

give the item to an appropriate charity, share the item within the recipient’s office, or 

destroy the item.

Example 1 to paragraph (a)(2): With approval by the recipient’s supervisor, a floral 

arrangement sent by a disability claimant to a helpful employee of the Social Security 

Administration may be placed in the office’s reception area.

(3) Gifts of intangibles. The employee must promptly reimburse the donor the market 

value for any entertainment, favor, service, benefit or other intangible. Subsequent 

reciprocation by the employee does not constitute reimbursement.

Example 1 to paragraph (a)(3): A Department of Defense employee wishes to attend a 

charitable event to which he has been offered a $300 ticket by a prohibited source. 

Although his attendance is not in the interest of the agency under § 2635.204(g), he 

may attend if he reimburses the donor the $300 face value of the ticket.

(4) Gifts from foreign governments or international organizations. The employee must 

dispose of gifts from foreign governments or international organizations in 

accordance with 41 CFR part 102-42.

(b) An agency may authorize disposition or return of gifts at Government expense. Employees 

may use penalty mail to forward reimbursements required or permitted by this section.

(c) An employee who, on his own initiative, promptly complies with the requirements of this 

section will not be deemed to have improperly accepted an unsolicited gift. An employee 

who promptly consults his agency ethics official to determine whether acceptance of an 

unsolicited gift is proper and who, upon the advice of the ethics official, returns the gift or 

otherwise disposes of the gift in accordance with this section, will be considered to have 

complied with the requirements of this section on his own initiative.

(d) Employees are encouraged to record any actions they have taken to properly dispose of 

gifts that cannot be accepted under this subpart, such as by sending an electronic mail 

message to the appropriate agency ethics official or the employee’s supervisor.
Subpart C—Gifts Between Employees

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

32

SUBPART C—GIFTS BETWEEN EMPLOYEES

§ 2635.301 Overview.

This subpart contains standards that prohibit an employee from giving, donating to, or soliciting 

contributions for, a gift to an official superior and from accepting a gift from an employee 

receiving less pay than himself, unless the item is excluded from the definition of a gift or falls 

within one of the exceptions set forth in this subpart.

§ 2635.302 General standards.

(a) Gifts to superiors. Except as provided in this subpart, an employee may not:

(1) Directly or indirectly, give a gift to or make a donation toward a gift for an official 

superior; or

(2) Solicit a contribution from another employee for a gift to either his own or the other 

employee’s official superior.

(b) Gifts from employees receiving less pay. Except as provided in this subpart, an employee 

may not, directly or indirectly, accept a gift from an employee receiving less pay than 

himself unless:

(1) The two employees are not in a subordinate-official superior relationship; and

(2) There is a personal relationship between the two employees that would justify the 

gift.

(c) Limitation on use of exceptions. Notwithstanding any exception provided in this subpart, an 

official superior shall not coerce the offering of a gift from a subordinate.

§ 2635.303 Definitions.

For purposes of this subpart, the following definitions shall apply:

(a) Gift has the meaning set forth in § 2635.203(b). For purposes of that definition an 

employee will be deemed to have paid market value for any benefit received as a result of 

his participation in any carpool or other such mutual arrangement involving another 

employee or other employees if he bears his fair proportion of the expense or effort 

involved.

(b) Indirectly, for purposes of § 2635.302(b), has the meaning set forth in § 2635.203(f). For 

purposes of § 2635.302(a), it includes a gift:
Subpart C—Gifts Between Employees

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

33

(1) Given with the employee’s knowledge and acquiescence by his parent, sibling, 

spouse, child, or dependent relative; or

(2) Given by a person other than the employee under circumstances where the employee 

has promised or agreed to reimburse that person or to give that person something of 

value in exchange for giving the gift.

(c) Subject to paragraph (a) of this section, market value has the meaning set forth in § 

2635.203(c).

(d) Official superior means any other employee, other than the President and the Vice 

President, including but not limited to an immediate supervisor, whose official 

responsibilities include directing or evaluating the performance of the employee’s official 

duties or those of any other official superior of the employee. For purposes of this subpart, 

an employee is considered to be the subordinate of any of his official superiors.

(e) Solicit means to request contributions by personal communication or by general 

announcement.

(f) Voluntary contribution means a contribution given freely, without pressure or coercion. A 

contribution is not voluntary unless it is made in an amount determined by the contributing 

employee, except that where an amount for a gift is included in the cost for a luncheon, 

reception or similar event, an employee who freely chooses to pay a proportionate share of 

the total cost in order to attend will be deemed to have made a voluntary contribution. 

Except in the case of contributions for a gift included in the cost of a luncheon, reception or 

similar event, a statement that an employee may choose to contribute less or not at all shall 

accompany any recommendation of an amount to be contributed for a gift to an official 

superior.

Example 1: A supervisory employee of the Agency for International Development has just 

been reassigned from Washington, DC to Kabul, Afghanistan. As a farewell party, 12 of 

her subordinates have decided to take her out to lunch at the Khyber Repast. It is 

understood that each will pay for his own meal and that the cost of the supervisor’s lunch 

will be divided equally among the twelve. Even though the amount they will contribute is 

not determined until the supervisor orders lunch, the contribution made by those who 

choose to participate in the farewell lunch is voluntary.

§ 2635.304 Exceptions.

The prohibitions set forth in § 2635.302(a) and (b) do not apply to a gift given or accepted under 

the circumstances described in paragraph (a) or (b) of this section. A contribution or the 

solicitation of a contribution that would otherwise violate the prohibitions set forth in § 

2635.302(a) and (b) may only be made in accordance with paragraph (c) of this section.
Subpart C—Gifts Between Employees

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

34

(a) General exceptions. On an occasional basis, including any occasion on which gifts are

traditionally given or exchanged, the following may be given to an official superior or 

accepted from a subordinate or other employee receiving less pay:

(1) Items, other than cash, with an aggregate market value of $10 or less per occasion;

(2) Items such as food and refreshments to be shared in the office among several 

employees;

(3) Personal hospitality provided at a residence which is of a type and value customarily 

provided by the employee to personal friends;

(4) Items given in connection with the receipt of personal hospitality if of a type and 

value customarily given on such occasions; and

(5) Leave transferred under subpart I of part 630 of this title to an employee who is not 

an immediate supervisor, unless obtained in violation of §630.912 of this title.

Example 1: Upon returning to work following a vacation at the beach, a claims 

examiner with the Department of Veterans Affairs may give his supervisor, and his 

supervisor may accept, a bag of saltwater taffy purchased on the boardwalk for $8.

Example 2: An employee of the Federal Deposit Insurance Corporation whose bank 

examination responsibilities require frequent travel may not bring her supervisor, 

and her supervisor may not accept, souvenir coffee mugs from each of the cities she 

visits in the course of performing her duties, even though each of the mugs costs less 

than $5. Gifts given on this basis are not occasional.

Example 3: The Secretary of Labor has invited the agency’s General Counsel to a 

dinner party at his home. The General Counsel may bring a $15 bottle of wine to the 

dinner party and the Secretary may accept this customary hostess gift from his 

subordinate, even though its cost is in excess of $10.

Example 4: For Christmas, a secretary may give his supervisor, and the supervisor 

may accept, a poinsettia plant purchased for $10 or less. The secretary may also 

invite his supervisor to a Christmas party in his home and the supervisor may attend.

(b) Special, infrequent occasions. A gift appropriate to the occasion may be given to an official 

superior or accepted from a subordinate or other employee receiving less pay:

(1) In recognition of infrequently occurring occasions of personal significance such as 

marriage, illness, or the birth or adoption of a child; or
Subpart C—Gifts Between Employees

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

35

(2) Upon occasions that terminate a subordinate-official superior relationship, such as 

retirement, resignation, or transfer.

Example 1: The administrative assistant to the personnel director of the Tennessee Valley 

Authority may send a $30 floral arrangement to the personnel director who is in the 

hospital recovering from surgery. The personnel director may accept the gift.

Example 2: A chemist employed by the Food and Drug Administration has been invited to 

the wedding of the lab director who is his official superior. He may give the lab director 

and his bride, and they may accept, a place setting in the couple’s selected china pattern 

purchased for $70.

Example 3: Upon the occasion of the supervisor’s retirement from Federal service, an 

employee of the Fish and Wildlife Service may give her supervisor a book of wildlife 

photographs which she purchased for $19. The retiring supervisor may accept the book.

(c) Voluntary contributions. An employee may solicit voluntary contributions of nominal 

amounts from fellow employees for an appropriate gift to an official superior and an 

employee may make a voluntary contribution of a nominal amount to an appropriate gift to 

an official superior:

(1) On a special, infrequent occasion as described in paragraph (b) of this section; or

(2) On an occasional basis, for items such as food and refreshments to be shared in the 

office among several employees.

An employee may accept such gifts to which a subordinate or other employee receiving 

less pay than himself has contributed.

Example 1: To mark the occasion of his retirement, members of the immediate staff of the 

Under Secretary of the Army would like to give him a party and provide him with a gift 

certificate. They may distribute an announcement of the party and include a nominal 

amount for a retirement gift in the fee for the party.

Example 2: The General Counsel of the National Endowment for the Arts may not collect 

contributions for a Christmas gift for the Chairman. Christmas occurs annually and is not 

an occasion of personal significance.

Example 3: Subordinates may not take up a collection for a gift to an official superior on 

the occasion of the superior’s swearing in or promotion to a higher grade position within 

the supervisory chain of that organization. These are not events that mark the termination 

of the subordinate-official superior relationship, nor are they events of personal 

significance within the meaning of § 2635.304(b). However, subordinates may take up a 
Subpart C—Gifts Between Employees

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

36

collection and employees may contribute $3 each to buy refreshments to be consumed by 

everyone in the immediate office to mark either such occasion.

Example 4: Subordinates may each contribute a nominal amount to a fund to give a gift to 

an official superior upon the occasion of that superior’s transfer or promotion to a position 

outside the organization.

Example 5: An Assistant Secretary at the Department of the Interior is getting married. 

His secretary has decided that a microwave oven would be a nice gift from his staff and has 

informed each of the Assistant Secretary’s subordinates that they should contribute $5 for 

the gift. Her method of collection is improper. Although she may recommend a $5 

contribution, the recommendation must be coupled with a statement that the employee 

whose contribution is solicited is free to contribute less or nothing at all.
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

37

SUBPART D—CONFLICTING FINANCIAL INTERESTS

§ 2635.401 Overview.

This subpart contains two provisions relating to financial interests. One is a disqualification 

requirement and the other is a prohibition on acquiring or continuing to hold specific financial 

interests. An employee may acquire or hold any financial interest not prohibited by § 2635.403. 

Notwithstanding that his acquisition or holding of a particular interest is proper, an employee is 

prohibited in accordance with § 2635.402 of this subpart from participating in an official

capacity in any particular matter in which, to his knowledge, he or any person whose interests are 

imputed to him has a financial interest, if the particular matter will have a direct and predictable 

effect on that interest. See also part 2640 of this chapter, for additional guidance amplifying § 

2635.402.

§ 2635.402 Disqualifying financial interests.

(a) Statutory prohibition. An employee is prohibited by criminal statute, 18 U.S.C. 208(a), 

from participating personally and substantially in an official capacity in any particular 

matter in which, to his knowledge, he or any person whose interests are imputed to him 

under this statute has a financial interest, if the particular matter will have a direct and 

predictable effect on that interest.

Note: Standards applicable when seeking non-Federal employment are contained in 

subpart F of this part and, if followed, will ensure that an employee does not violate 

18 U.S.C. 208(a) or this section when he is negotiating for or has an arrangement 

concerning future employment. In all other cases where the employee’s participation would 

violate 18 U.S.C. 208(a), an employee shall disqualify himself from participation in the 

matter in accordance with paragraph (c) of this section or obtain a waiver or determine that 

an exemption applies, as described in paragraph (d) of this section.

(b) Definitions. For purposes of this section, the following definitions shall apply:

(1) Direct and predictable effect. 

(i) A particular matter will have a direct effect on a financial interest if there is a 

close causal link between any decision or action to be taken in the matter and 

any expected effect of the matter on the financial interest. An effect may be 

direct even though it does not occur immediately. A particular matter will not 

have a direct effect on a financial interest, however, if the chain of causation is 

attenuated or is contingent upon the occurrence of events that are speculative or 

that are independent of, and unrelated to, the matter. A particular matter that has 

an effect on a financial interest only as a consequence of its effects on the 
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

38

general economy does not have a direct effect within the meaning of this 

subpart.

(ii) A particular matter will have a predictable effect if there is a real, as opposed to 

a speculative possibility that the matter will affect the financial interest. It is not 

necessary, however, that the magnitude of the gain or loss be known, and the 

dollar amount of the gain or loss is immaterial.

Note: If a particular matter involves a specific party or parties, generally the matter 

will at most only have a direct and predictable effect, for purposes of this subpart, on 

a financial interest of the employee in or with a party, such as the employee’s interest 

by virtue of owning stock. There may, however, be some situations in which, under 

the above standards, a particular matter will have a direct and predictable effect on an 

employee’s financial interests in or with a nonparty. For example, if a party is a 

corporation, a particular matter may also have a direct and predictable effect on an 

employee’s financial interests through ownership of stock in an affiliate, parent, or 

subsidiary of that party. Similarly, the disposition of a protest against the award of a 

contract to a particular company may also have a direct and predictable effect on an 

employee’s financial interest in another company listed as a subcontractor in the 

proposal of one of the competing offerors.

Example 1: An employee of the National Library of Medicine at the National 

Institutes of Health has just been asked to serve on the technical evaluation panel to 

review proposals for a new library computer search system. DEF Computer 

Corporation, a closely held company in which he and his wife own a majority of the 

stock, has submitted a proposal. Because award of the systems contract to DEF or to 

any other offeror will have a direct and predictable effect on both his and his wife’s 

financial interests, the employee cannot participate on the technical evaluation team 

unless his disqualification has been waived.

Example 2: Upon assignment to the technical evaluation panel, the employee in the 

preceding example finds that DEF Computer Corporation has not submitted a 

proposal. Rather, LMN Corp., with which DEF competes for private sector business, 

is one of the six offerors. The employee is not disqualified from serving on the 

technical evaluation panel. Any effect on the employee’s financial interests as a result 

of the agency’s decision to award or not award the systems contract to LMN would 

be at most indirect and speculative.

(2) Imputed interests. For purposes of 18 U.S.C. 208(a) and this subpart, the financial 

interests of the following persons will serve to disqualify an employee to the same 

extent as if they were the employee’s own interests:

(i) The employee’s spouse;
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

39

(ii) The employee’s minor child;

(iii) The employee’s general partner;

(iv) An organization or entity which the employee serves as officer, director, trustee, 

general partner or employee; and

(v) A person with whom the employee is negotiating for or has an arrangement 

concerning prospective employment. (Employees who are seeking other 

employment should refer to and comply with the standards in subpart F of this 

part).

Example 1: An employee of the Department of Education serves without 

compensation on the board of directors of Kinder World, Inc., a nonprofit 

corporation that engages in good works. Even though her personal financial interests 

will not be affected, the employee must disqualify herself from participating in the 

review of a grant application submitted by Kinder World. Award or denial of the 

grant will affect the financial interests of Kinder World and its financial interests are 

imputed to her as a member of its board of directors.

Example 2: The spouse of an employee of the Food and Drug Administration has 

obtained a position with a well established biomedical research company. The 

company has developed an artificial limb for which it is seeking FDA approval and 

the employee would ordinarily be asked to participate in the FDA’s review and 

approval process. The spouse is a salaried employee of the company and has no 

direct ownership interest in the company. Nor does she have an indirect ownership 

interest, as would be the case, for example, if she were participating in a pension plan 

that held stock in the company. Her position with the company is such that the 

granting or withholding of FDA approval will not have a direct and predictable effect 

on her salary or on her continued employment with the company. Since the FDA 

approval process will not affect his spouse’s financial interests, the employee is not 

disqualified under § 2635.402 from participating in that process. Nevertheless, the 

financial interests of the spouse’s employer may be disqualifying under the 

impartiality principle, as implemented at § 2635.502.

(3) Particular matter. The term particular matter encompasses only matters that involve 

deliberation, decision, or action that is focused upon the interests of specific persons, 

or a discrete and identifiable class of persons. Such a matter is covered by this subpart 

even if it does not involve formal parties and may include governmental action such 

as legislation or policy-making that is narrowly focused on the interests of such a 

discrete and identifiable class of persons. The term particular matter, however, does 

not extend to the consideration or adoption of broad policy options that are directed to 

the interests of a large and diverse group of persons. The particular matters covered 
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

40

by this subpart include a judicial or other proceeding, application, request for a ruling 

or other determination, contract, claim, controversy, charge, accusation or arrest.

Example 1: The Internal Revenue Service’s amendment of its regulations to change 

the manner in which depreciation is calculated is not a particular matter, nor is the 

Social Security Administration’s consideration of changes to its appeal procedures 

for disability claimants.

Example 2: Consideration by the Interstate Commerce Commission of regulations 

establishing safety standards for trucks on interstate highways involves a particular 

matter.

(4) Personal and substantial. To participate personally means to participate directly. It 

includes the direct and active supervision of the participation of a subordinate in the 

matter. To participate substantially means that the employee’s involvement is of 

significance to the matter. Participation may be substantial even though it is not 

determinative of the outcome of a particular matter. However, it requires more than 

official responsibility, knowledge, perfunctory involvement, or involvement on an 

administrative or peripheral issue. A finding of substantiality should be based not 

only on the effort devoted to a matter, but also on the importance of the effort. While 

a series of peripheral involvements may be insubstantial, the single act of approving 

or participating in a critical step may be substantial. Personal and substantial 

participation may occur when, for example, an employee participates through 

decision, approval, disapproval, recommendation, investigation or the rendering of 

advice in a particular matter.

(c) Disqualification. Unless the employee is authorized to participate in the particular matter 

by virtue of a waiver or exemption described in paragraph (d) of this section or because the 

interest has been divested in accordance with paragraph (e) of this section, an employee 

shall disqualify himself from participating in a particular matter in which, to his 

knowledge, he or a person whose interests are imputed to him has a financial interest, if the 

particular matter will have a direct and predictable effect on that interest. Disqualification 

is accomplished by not participating in the particular matter.

(1) Notification. An employee who becomes aware of the need to disqualify himself from 

participation in a particular matter to which he has been assigned should notify the 

person responsible for his assignment. An employee who is responsible for his own 

assignment should take whatever steps are necessary to ensure that he does not 

participate in the matter from which he is disqualified. Appropriate oral or written 

notification of the employee’s disqualification may be made to coworkers by the 

employee or a supervisor to ensure that the employee is not involved in a matter from 

which he is disqualified.
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

41

(2) Documentation. An employee need not file a written disqualification statement unless 

he is required by part 2634 of this chapter to file written evidence of compliance with 

an ethics agreement with the Office of Government Ethics or is asked by an agency 

ethics official or the person responsible for his assignment to file a written 

disqualification statement. However, an employee may elect to create a record of his 

actions by providing written notice to a supervisor or other appropriate official.

Example 1: An Assistant Secretary of the Department of the Interior owns 

recreational property that borders on land which is being considered for annexation 

to a national park. Annexation would directly and predictably increase the value of 

her vacation property and, thus, she is disqualified from participating in any way in 

the Department’s deliberations or decisions regarding the annexation. Because she is 

responsible for determining which matters she will work on, she may accomplish her 

disqualification merely by ensuring that she does not participate in the matter. 

Because of the level of her position, however, the Assistant Secretary might be wise to 

establish a record that she has acted properly by providing a written disqualification 

statement to an official superior and by providing written notification of the 

disqualification to subordinates to ensure that they do not raise or discuss with her 

any issues related to the annexation.

(d) Waiver of or exemptions from disqualification. An employee who would otherwise be 

disqualified by 18 U.S.C. 208(a) may be permitted to participate in a particular matter 

where the otherwise disqualifying financial interest is the subject of a regulatory exemption 

or individual waiver described in this paragraph, or results from certain Indian birthrights 

as described in 18 U.S.C. 208(b)(4).

(1) Regulatory exemptions. Under 18 U.S.C. 208(b)(2), regulatory exemptions of general 

applicability have been issued by the Office of Government Ethics, based on its 

determination that particular interests are too remote or too inconsequential to affect 

the integrity of the services of employees to whom those exemptions apply. See the 

regulations in subpart B of part 2640 of this chapter, which supersede any preexisting 

agency regulatory exemptions.

(2) Individual waivers. An individual waiver enabling the employee to participate in one 

or more particular matters may be issued under 18 U.S.C. 208(b)(1) if, in advance of 

the employee’s participation:

(i) The employee:

(A) Advises the Government official responsible for the employee’s 

appointment (or other Government official to whom authority to issue 

such a waiver for the employee has been delegated) about the nature and 

circumstances of the particular matter or matters; and
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

42

(B) Makes full disclosure to such official of the nature and extent of the 

disqualifying financial interest; and

(ii) Such official determines, in writing, that the employee’s financial interest in the 

particular matter or matters is not so substantial as to be deemed likely to affect 

the integrity of the services which the Government may expect from such 

employee. See also subpart C of part 2640 of this chapter, for additional 

guidance.

(3) Federal advisory committee member waivers. An individual waiver may be issued 

under 18 U.S.C. 208(b)(3) to a special Government employee serving on, or under 

consideration for appointment to, an advisory committee within the meaning of the 

Federal Advisory Committee Act if the Government official responsible for the 

employee’s appointment (or other Government official to whom authority to issue 

such a waiver for the employee has been delegated):

(i) Reviews the financial disclosure report filed by the special Government 

employee pursuant to the Ethics in Government Act of 1978; and

(ii) Certifies in writing that the need for the individual’s services outweighs the 

potential for a conflict of interest created by the otherwise disqualifying

financial interest. See also subpart C of part 2640 of this chapter, for additional 

guidance.

(4) Consultation and notification regarding waivers. When practicable, an official is 

required to consult formally or informally with the Office of Government Ethics prior 

to granting a waiver referred to in paragraph (d)(2) or (3) of this section. A copy of 

each such waiver is to be forwarded to the Director of the Office of Government 

Ethics.

(e) Divestiture of a disqualifying financial interest. Upon sale or other divestiture of the asset 

or other interest that causes his disqualification from participation in a particular matter, 

18 U.S.C. 208(a) and paragraph (c) of this section will no longer prohibit the employee’s 

participation in the matter.

(1) Voluntary divestiture. An employee who would otherwise be disqualified from 

participation in a particular matter may voluntarily sell or otherwise divest himself of 

the interest that causes the disqualification.

(2) Directed divestiture. An employee may be required to sell or otherwise divest himself 

of the disqualifying financial interest if his continued holding of that interest is 

prohibited by statute or by agency supplemental regulation issued in accordance with 

§ 2635.403(a), or if the agency determines in accordance with § 2635.403(b) that a 
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

43

substantial conflict exists between the financial interest and the employee’s duties or 

accomplishment of the agency’s mission.

(3) Eligibility for special tax treatment. An employee who is directed to divest an interest 

may be eligible to defer the tax consequences of divestiture under subpart J of part 

2634 of this chapter. An employee who divests before obtaining a certificate of 

divestiture will not be eligible for this special tax treatment.

(f) Official duties that give rise to potential conflicts. Where an employee’s official duties 

create a substantial likelihood that the employee may be assigned to a particular matter 

from which he is disqualified, the employee should advise his supervisor or other person 

responsible for his assignments of that potential so that conflicting assignments can be 

avoided, consistent with the agency’s needs.

§ 2635.403 Prohibited financial interests.

An employee shall not acquire or hold any financial interest that he is prohibited from acquiring 

or holding by statute, by agency regulation issued in accordance with paragraph (a) of this 

section or by reason of an agency determination of substantial conflict under paragraph (b) of 

this section.

Note: There is no statute of Government wide applicability prohibiting employees from holding 

or acquiring any financial interest. Statutory restrictions, if any, are contained in agency statutes 

which, in some cases, may be implemented by agency regulations issued independent of this 

part.

(a) Agency regulation prohibiting certain financial interests. An agency may, by supplemental 

agency regulation issued after February 3, 1993, prohibit or restrict the acquisition or 

holding of a financial interest or a class of financial interests by agency employees, or any 

category of agency employees, and the spouses and minor children of those employees, 

based on the agency’s determination that the acquisition or holding of such financial 

interests would cause a reasonable person to question the impartiality and objectivity with 

which agency programs are administered. Where the agency restricts or prohibits the 

holding of certain financial interests by its employees’ spouses or minor children, any such 

prohibition or restriction shall be based on a determination that there is a direct and 

appropriate nexus between the prohibition or restriction as applied to spouses and minor 

children and the efficiency of the service.

(b) Agency determination of substantial conflict. An agency may prohibit or restrict an 

individual employee from acquiring or holding a financial interest or a class of financial 

interests based upon the agency designee’s determination that the holding of such interest 

or interests will:
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

44

(1) Require the employee’s disqualification from matters so central or critical to the 

performance of his official duties that the employee’s ability to perform the duties of 

his position would be materially impaired; or

(2) Adversely affect the efficient accomplishment of the agency’s mission because 

another employee cannot be readily assigned to perform work from which the 

employee would be disqualified by reason of the financial interest.

Example 1: An Air Force employee who owns stock in a major aircraft engine 

manufacturer is being considered for promotion to a position that involves 

responsibility for development of a new fighter airplane. If the agency determined 

that engineering and other decisions about the Air Force’s requirements for the 

fighter would directly and predictably affect his financial interests, the employee 

could not, by virtue of 18 U.S.C. 208(a), perform these significant duties of the 

position while retaining his stock in the company. The agency can require the 

employee to sell his stock as a condition of being selected for the position rather than 

allowing him to disqualify himself in particular matters.

(c) Definition of financial interest. For purposes of this section:

(1) Except as provided in paragraph (c)(2) of this section, the term financial interest is 

limited to financial interests that are owned by the employee or by the employee’s 

spouse or minor children. However, the term is not limited to only those financial 

interests that would be disqualifying under 18 U.S.C. 208(a) and § 2635.402. The 

term includes any current or contingent ownership, equity, or security interest in real 

or personal property or a business and may include an indebtedness or compensated 

employment relationship. It thus includes, for example, interests in the nature of 

stocks, bonds, partnership interests, fee and leasehold interests, mineral and other 

property rights, deeds of trust, and liens, and extends to any right to purchase or 

acquire any such interest, such as a stock option or commodity future. It does not 

include a future interest created by someone other than the employee, his spouse, or 

dependent child or any right as a beneficiary of an estate that has not been settled.

Example 1: A regulatory agency has concluded that ownership by its employees of 

stock in entities regulated by the agency would significantly diminish public 

confidence in the agency’s performance of its regulatory functions and thereby 

interfere with the accomplishment of its mission. In its supplemental agency 

regulations, the agency may prohibit its employees from acquiring or continuing to 

hold stock in regulated entities.

Example 2: An agency that insures bank deposits may, by supplemental agency 

regulation, prohibit its employees who are bank examiners from obtaining loans from 

banks they examine. Examination of a member bank could have no effect on an 

employee’s fixed obligation to repay a loan from that bank and, thus, would not affect 
Subpart D—Conflicting Financial Interests

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

45

an employee’s financial interests so as to require disqualification under § 2635.402. 

Nevertheless, a loan from a member bank is a discrete financial interest within the 

meaning of § 2635.403(c) that may, when appropriate, be prohibited by supplemental 

agency regulation.

(2) The term financial interest includes service, with or without compensation, as an 

officer, director, trustee, general partner or employee of any person, including a 

nonprofit entity, whose financial interests are imputed to the employee under § 

2635.402(b)(2) (iii) or (iv).

Example 1. The Foundation for the Preservation of Wild Horses maintains herds of 

horses that graze on public and private lands. Because its costs are affected by 

Federal policies regarding grazing permits, the Foundation routinely comments on 

all proposed rules governing use of Federal grasslands issued by the Bureau of Land 

Management. BLM may require an employee to resign his uncompensated position as 

Vice President of the Foundation as a condition of his promotion to a policy-level 

position within the Bureau rather than allowing him to rely on disqualification in 

particular cases.

(d) Reasonable period to divest or terminate. Whenever an agency directs divestiture of a 

financial interest under paragraph (a) or (b) of this section, the employee shall be given a 

reasonable period of time, considering the nature of his particular duties and the nature and 

marketability of the interest, within which to comply with the agency’s direction. Except in 

cases of unusual hardship, as determined by the agency, a reasonable period shall not 

exceed 90 days from the date divestiture is first directed. However, as long as the employee 

continues to hold the financial interest, he remains subject to any restrictions imposed by 

this subpart.

(e) Eligibility for special tax treatment. An employee required to sell or otherwise divest a 

financial interest may be eligible to defer the tax consequences of divestiture under 

subpart J of part 2634 of this chapter.
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

46

SUBPART E—IMPARTIALITY IN PERFORMING OFFICIAL DUTIES

§ 2635.501 Overview.

(a) This subpart contains two provisions intended to ensure that an employee takes appropriate 

steps to avoid an appearance of loss of impartiality in the performance of his official duties. 

Under § 2635.502, unless he receives prior authorization, an employee should not 

participate in a particular matter involving specific parties which he knows is likely to 

affect the financial interests of a member of his household, or in which he knows a person 

with whom he has a covered relationship is or represents a party, if he determines that a 

reasonable person with knowledge of the relevant facts would question his impartiality in 

the matter. An employee who is concerned that other circumstances would raise a question 

regarding his impartiality should use the process described in § 2635.502 to determine 

whether he should or should not participate in a particular matter.

(b) Under § 2635.503, an employee who has received an extraordinary severance or other 

payment from a former employer prior to entering Government service is subject, in the 

absence of a waiver, to a two-year period of disqualification from participation in particular 

matters in which that former employer is or represents a party.

Note: Questions regarding impartiality necessarily arise when an employee’s official duties 

impact upon the employee’s own financial interests or those of certain other persons, such 

as the employee’s spouse or minor child. An employee is prohibited by criminal statute, 

18 U.S.C. 208(a), from participating personally and substantially in an official capacity in 

any particular matter in which, to his knowledge, he, his spouse, general partner or minor 

child has a financial interest, if the particular matter will have a direct and predictable 

effect on that interest. The statutory prohibition also extends to an employee’s participation 

in a particular matter in which, to his knowledge, an organization in which the employee is 

serving as officer, director, trustee, general partner or employee, or with whom he is 

negotiating or has an arrangement concerning prospective employment has a financial 

interest. Where the employee’s participation in a particular matter would affect any one of 

these financial interests, the standards set forth in subparts D or F of this part apply and 

only a statutory waiver or exemption, as described in §§ 2635.402(d) and 2635.605(a), will 

enable the employee to participate in that matter. The authorization procedures in § 

2635.502(d) may not be used to authorize an employee’s participation in any such matter. 

Where the employee complies with all terms of the waiver, the granting of a statutory 

waiver will be deemed to constitute a determination that the interest of the Government in 

the employee’s participation outweighs the concern that a reasonable person may question 

the integrity of agency programs and operations. Similarly, where the employee meets all 

prerequisites for the application of one of the exemptions set forth in subpart B of part 2640 

of this chapter, that also constitutes a determination that the interest of the Government in 

the employee’s participation outweighs the concern that a reasonable person may question 

the integrity of agency programs and operations.
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

47

§ 2635.502 Personal and business relationships.

(a) Consideration of appearances by the employee. Where an employee knows that a particular 

matter involving specific parties is likely to have a direct and predictable effect on the 

financial interest of a member of his household, or knows that a person with whom he has a 

covered relationship is or represents a party to such matter, and where the employee 

determines that the circumstances would cause a reasonable person with knowledge of the 

relevant facts to question his impartiality in the matter, the employee should not participate 

in the matter unless he has informed the agency designee of the appearance problem and 

received authorization from the agency designee in accordance with paragraph (d) of this 

section.

(1) In considering whether a relationship would cause a reasonable person to question his 

impartiality, an employee may seek the assistance of his supervisor, an agency ethics 

official or the agency designee.

(2) An employee who is concerned that circumstances other than those specifically 

described in this section would raise a question regarding his impartiality should use 

the process described in this section to determine whether he should or should not 

participate in a particular matter.

(b) Definitions. For purposes of this section:

(1) An employee has a covered relationship with:

(i) A person, other than a prospective employer described in § 2635.603(c), with 

whom the employee has or seeks a business, contractual or other financial 

relationship that involves other than a routine consumer transaction;

Note: An employee who is seeking employment within the meaning of § 

2635.603 shall comply with subpart F of this part rather than with this section.

(ii) A person who is a member of the employee’s household, or who is a relative 

with whom the employee has a close personal relationship;

(iii) A person for whom the employee’s spouse, parent or dependent child is, to the 

employee’s knowledge, serving or seeking to serve as an officer, director, 

trustee, general partner, agent, attorney, consultant, contractor or employee;

(iv) 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
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

48

(v) An organization, other than a political party described in 26 U.S.C. 527(e), in 

which the employee is an active participant. Participation is active if, for 

example, it involves service as an official of the organization or in a capacity 

similar to that of a committee or subcommittee chairperson or spokesperson, or 

participation in directing the activities of the organization. In other cases, 

significant time devoted to promoting specific programs of the organization, 

including coordination of fundraising efforts, is an indication of active 

participation. Payment of dues or the donation or solicitation of financial 

support does not, in itself, constitute active participation.

Note: Nothing in this section shall be construed to suggest that an employee should 

not participate in a matter because of his political, religious or moral views.

(2) Direct and predictable effect has the meaning set forth in § 2635.402(b)(1).

(3) Particular matter involving specific parties has the meaning set forth in § 

2637.102(a)(7) of this chapter.

Example 1: An employee of the General Services Administration has made an offer 

to purchase a restaurant owned by a local developer. The developer has submitted an 

offer in response to a GSA solicitation for lease of office space. Under the 

circumstances, she would be correct in concluding that a reasonable person would be 

likely to question her impartiality if she were to participate in evaluating that 

developer’s or its competitor’s lease proposal.

Example 2: An employee of the Department of Labor is providing technical 

assistance in drafting occupational safety and health legislation that will affect all 

employers of five or more persons. His wife is employed as an administrative 

assistant by a large corporation that will incur additional costs if the proposed 

legislation is enacted. Because the legislation is not a particular matter involving 

specific parties, the employee may continue to work on the legislation and need not 

be concerned that his wife’s employment with an affected corporation would raise a 

question concerning his impartiality.

Example 3: An employee of the Defense Logistics Agency who has responsibilities 

for testing avionics being produced by an Air Force contractor has just learned that 

his sister-in-law has accepted employment as an engineer with the contractor’s 

parent corporation. Where the parent corporation is a conglomerate, the employee 

could reasonably conclude that, under the circumstances, a reasonable person would 

not be likely to question his impartiality if he were to continue to perform his test and 

evaluation responsibilities.

Example 4: An engineer has just resigned from her position as vice president of an 

electronics company in order to accept employment with the Federal Aviation 
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

49

Administration in a position involving procurement responsibilities. Although the 

employee did not receive an extraordinary payment in connection with her 

resignation and has severed all financial ties with the firm, under the circumstances 

she would be correct in concluding that her former service as an officer of the 

company would be likely to cause a reasonable person to question her impartiality if 

she were to participate in the administration of a DOT contract for which the firm is 

a first-tier subcontractor.

Example 5: An employee of the Internal Revenue Service is a member of a private 

organization whose purpose is to restore a Victorian-era railroad station and she 

chairs its annual fundraising drive. Under the circumstances, the employee would be 

correct in concluding that her active membership in the organization would be likely 

to cause a reasonable person to question her impartiality if she were to participate in 

an IRS determination regarding the tax-exempt status of the organization.

(c) Determination by agency designee. Where he has information concerning a potential 

appearance problem arising from the financial interest of a member of the employee’s 

household in a particular matter involving specific parties, or from the role in such matter 

of a person with whom the employee has a covered relationship, the agency designee may 

make an independent determination as to whether a reasonable person with knowledge of 

the relevant facts would be likely to question the employee’s impartiality in the matter. 

Ordinarily, the agency designee’s determination will be initiated by information provided 

by the employee pursuant to paragraph (a) of this section. However, at any time, including 

after the employee has disqualified himself from participation in a matter pursuant to 

paragraph (e) of this section, the agency designee may make this determination on his own 

initiative or when requested by the employee’s supervisor or any other person responsible 

for the employee’s assignment.

(1) If the agency designee determines that the employee’s impartiality is likely to be 

questioned, he shall then determine, in accordance with paragraph (d) of this section, 

whether the employee should be authorized to participate in the matter. Where the 

agency designee determines that the employee’s participation should not be 

authorized, the employee will be disqualified from participation in the matter in 

accordance with paragraph (e) of this section.

(2) If the agency designee determines that the employee’s impartiality is not likely to 

be questioned, he may advise the employee, including an employee who has 

reached a contrary conclusion under paragraph (a) of this section, that the 

employee’s participation in the matter would be proper.

(d) Authorization by agency designee. Where an employee’s participation in a particular matter 

involving specific parties would not violate 18 U.S.C. 208(a), but would raise a question in 

the mind of a reasonable person about his impartiality, the agency designee may authorize 

the employee to participate in the matter based on a determination, made in light of all 
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

50

relevant circumstances, that the interest of the Government in the employee’s participation 

outweighs the concern that a reasonable person may question the integrity of the agency’s 

programs and operations. Factors which may be taken into consideration include:

(1) The nature of the relationship involved;

(2) The effect that resolution of the matter would have upon the financial interests of the 

person involved in the relationship;

(3) The nature and importance of the employee’s role in the matter, including the extent 

to which the employee is called upon to exercise discretion in the matter;

(4) The sensitivity of the matter;

(5) The difficulty of reassigning the matter to another employee; and

(6) Adjustments that may be made in the employee’s duties that would reduce or 

eliminate the likelihood that a reasonable person would question the employee’s 

impartiality.

Authorization by the agency designee shall be documented in writing at the agency 

designee’s discretion or when requested by the employee. An employee who has been 

authorized to participate in a particular matter involving specific parties may not thereafter 

disqualify himself from participation in the matter on the basis of an appearance problem 

involving the same circumstances that have been considered by the agency designee.

Example 1: The Deputy Director of Personnel for the Department of the Treasury and an 

attorney with the Department’s Office of General Counsel are general partners in a real 

estate partnership. The Deputy Director advises his supervisor, the Director of Personnel, 

of the relationship upon being assigned to a selection panel for a position for which his 

partner has applied. If selected, the partner would receive a substantial increase in salary. 

The agency designee cannot authorize the Deputy Director to participate on the panel 

under the authority of this section since the Deputy Director is prohibited by criminal 

statute, 18 U.S.C. 208(a), from participating in a particular matter affecting the financial 

interest of a person who is his general partner. See § 2635.402.

Example 2: A new employee of the Securities and Exchange Commission is assigned to an 

investigation of insider trading by the brokerage house where she had recently been 

employed. Because of the sensitivity of the investigation, the agency designee may be 

unable to conclude that the Government’s interest in the employee’s participation in the 

investigation outweighs the concern that a reasonable person may question the integrity of 

the investigation, even though the employee has severed all financial ties with the company. 

Based on consideration of all relevant circumstances, the agency designee might 
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

51

determine, however, that it is in the interest of the Government for the employee to pass on 

a routine filing by the particular brokerage house.

Example 3: An Internal Revenue Service employee involved in a long and complex tax 

audit is advised by her son that he has just accepted an entry-level management position 

with a corporation whose taxes are the subject of the audit. Because the audit is essentially 

complete and because the employee is the only one with an intimate knowledge of the case, 

the agency designee might determine, after considering all relevant circumstances, that it 

is in the Government’s interest for the employee to complete the audit, which is subject to 

additional levels of review.

(e) Disqualification. Unless the employee is authorized to participate in the matter under 

paragraph (d) of this section, an employee shall not participate in a particular matter 

involving specific parties when he or the agency designee has concluded, in accordance 

with paragraph (a) or (c) of this section, that the financial interest of a member of the 

employee’s household, or the role of a person with whom he has a covered relationship, is 

likely to raise a question in the mind of a reasonable person about his impartiality. 

Disqualification is accomplished by not participating in the matter.

(1) Notification. An employee who becomes aware of the need to disqualify himself from 

participation in a particular matter involving specific parties to which he has been 

assigned should notify the person responsible for his assignment. An employee who 

is responsible for his own assignment should take whatever steps are necessary to 

ensure that he does not participate in the matter from which he is disqualified. 

Appropriate oral or written notification of the employee’s disqualification may be 

made to coworkers by the employee or a supervisor to ensure that the employee is not 

involved in a particular matter involving specific parties from which he is 

disqualified.

(2) Documentation. An employee need not file a written disqualification statement unless 

he is required by part 2634 of this chapter to file written evidence of compliance with 

an ethics agreement with the Office of Government Ethics or is specifically asked by 

an agency ethics official or the person responsible for his assignment to file a written 

disqualification statement. However, an employee may elect to create a record of his 

actions by providing written notice to a supervisor or other appropriate official.

(f) Relevant considerations. An employee’s reputation for honesty and integrity is not a 

relevant consideration for purposes of any determination required by this section.

§ 2635.503 Extraordinary payments from former employers.

(a) Disqualification requirement. Except as provided in paragraph (c) of this section, an 

employee shall be disqualified for two years from participating in any particular matter in 

which a former employer is a party or represents a party if he received an extraordinary 
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

52

payment from that person prior to entering Government service. The two-year period of 

disqualification begins to run on the date that the extraordinary payment is received.

Example 1: Following his confirmation hearings and one month before his scheduled 

swearing in, a nominee to the position of Assistant Secretary of a department received an 

extraordinary payment from his employer. For one year and 11 months after his swearing 

in, the Assistant Secretary may not participate in any particular matter to which his former 

employer is a party.

Example 2: An employee received an extraordinary payment from her former employer, a 

coal mine operator, prior to entering on duty with the Department of the Interior. For two 

years thereafter, she may not participate in a determination regarding her former 

employer’s obligation to reclaim a particular mining site, because her former employer is 

a party to the matter. However, she may help to draft reclamation legislation affecting all 

coal mining operations because this legislation does not involve any parties.

(b) Definitions. For purposes of this section, the following definitions shall apply:

(1) Extraordinary payment means any item, including cash or an investment interest, 

with a value in excess of $10,000, which is paid:

(i) On the basis of a determination made after it became known to the former 

employer that the individual was being considered for or had accepted a 

Government position; and

(ii) Other than pursuant to the former employer’s established compensation, 

partnership, or benefits program. A compensation, partnership, or benefits 

program will be deemed an established program if it is contained in bylaws, a 

contract or other written form, or if there is a history of similar payments made 

to others not entering into Federal service.

Example 1: The vice president of a small corporation is nominated to be an 

ambassador. In recognition of his service to the corporation, the board of directors 

votes to pay him $50,000 upon his confirmation in addition to the regular severance 

payment provided for by the corporate bylaws. The regular severance payment is not 

an extraordinary payment. The gratuitous payment of $50,000 is an extraordinary 

payment, since the corporation had not made similar payments to other departing 

officers.

(2) Former employer includes any person which the employee served as an officer, 

director, trustee, general partner, agent, attorney, consultant, contractor or employee.

(c) Waiver of disqualification. The disqualification requirement of this section may be waived 

based on a finding that the amount of the payment was not so substantial as to cause a 
Subpart E—Impartiality in Performing Official Duties

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

53

reasonable person to question the employee’s ability to act impartially in a matter in which 

the former employer is or represents a party. The waiver shall be in writing and may be 

given only by the head of the agency or, where the recipient of the payment is the head of 

the agency, by the President or his designee. Waiver authority may be delegated by agency 

heads to any person who has been delegated authority to issue individual waivers under 

18 U.S.C. 208(b) for the employee who is the recipient of the extraordinary payment.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

54

SUBPART F—SEEKING OTHER EMPLOYMENT

§ 2635.601 Overview.

This subpart contains a recusal requirement that applies to employees when seeking non-Federal 

employment with persons whose financial interests would be directly and predictably affected by 

particular matters in which the employees participate personally and substantially. Specifically, it 

addresses the requirement of 18 U.S.C. 208(a) that an employee not participate personally and 

substantially in any particular matter that, to the employee’s knowledge, will have a direct and 

predictable effect on the financial interests of a person ‘‘with whom the employee is negotiating 

or has any arrangement concerning prospective employment.’’ See § 2635.402 and § 2640.103 of 

this chapter. Beyond this statutory requirement, this subpart also addresses issues of lack of 

impartiality that require recusal from particular matters affecting the financial interests of a 

prospective employer when an employee’s actions in seeking employment fall short of actual 

employment negotiations. In addition, this subpart contains the statutory notification 

requirements that apply to public filers when they negotiate for or have agreements of future 

employment or compensation. Specifically, it addresses the requirements of section 17 of the 

Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act), Public Law 112–105, 

126 Stat. 303, 5 U.S.C. app. 101 note, that a public filer must submit a written statement 

identifying the entity involved in the negotiations or agreement within three business days after 

commencement of such negotiations or agreement and must submit a notification of recusal 

whenever there is a conflict of interest or an appearance of a conflict of interest.

§ 2635.602 Applicability and related considerations.

(a) Applicability.

(1) To ensure that an employee does not violate 18 U.S.C. 208(a), section 17 of the 

STOCK Act, or the principles of ethical conduct contained in § 2635.101(b), an 

employee who is seeking employment or who has an arrangement concerning 

prospective employment must comply with the applicable recusal requirements of 

§§ 2635.604 and 2635.606 if particular matters in which the employee will be 

participating personally and substantially would, to the employee’s knowledge, 

directly and predictably affect the financial interests of a prospective employer or of a 

person with whom the employee has an arrangement concerning prospective 

employment. Compliance with this subpart also will ensure that the employee does 

not violate subpart D or E of this part. In addition, a public filer who negotiates for or 

has an agreement of future employment or compensation must comply with the 

requirements of § 2635.607.

(2) An employee who is seeking employment with a person whose financial interests are 

not, to the employee’s knowledge, affected directly and predictably by particular 

matters in which the employee participates personally and substantially has no 
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

55

obligation to recuse under this subpart. In addition, nothing in this subpart requires an 

employee, other than a public filer, to notify anyone that the employee is seeking 

employment unless a notification is necessary to implement a recusal pursuant to 

§ 2635.604(b). A public filer who negotiates for or has an agreement of future 

employment or compensation must comply with the notification requirements in 

§ 2635.607. An employee may, however, be subject to other statutes that impose 

requirements on employment contacts or discussions, such as 41 U.S.C. 2103, which 

is applicable to agency officials involved in certain procurement matters. Employees 

are encouraged to consult with their ethics officials if they have any questions about 

how this subpart may apply to them. Ethics officials are not obligated by this subpart 

to inform supervisors that employees are seeking employment.

Example 1 to paragraph (a): Recently, an employee of the Department of Education 

submitted her resume to the University of Delaware for a job opening that she heard about 

through a friend. The employee has begun seeking employment. However, because she is 

not participating in any particular matters affecting the University of Delaware, she is not 

required to notify anyone that she has begun seeking employment.

Example 2 to paragraph (a): The employee in the preceding example has been

approached about an employment opportunity at the University of Maryland. Because the 

University of Maryland has applied for grants on which she has been assigned to work in 

the past, she wants to make certain that she does not violate the ethics rules. The employee 

contacts her ethics official to discuss the matter. The employee informs the ethics official 

that she is not currently participating in any particular matters affecting the University of

Maryland. As a result, the ethics official advises the employee that she will have no 

notification obligations under this subpart. However, the ethics official cautions the 

employee that, if the employee is assigned to participate in a particular matter affecting the 

University of Maryland while she is seeking employment with the University, she must take 

whatever steps are necessary to avoid working on the grant, in accordance with 

§ 2635.604.

(b) Related restrictions—

(1) Outside employment while a Federal employee. An employee who is contemplating 

outside employment to be undertaken concurrently with the employee’s Federal 

employment must abide by any limitations applicable to the employee’s outside 

activities under subparts G and H of this part, including any requirements under 

supplemental agency regulations to obtain prior approval before engaging in outside 

employment or activities and any prohibitions under supplemental agency regulations 

related to outside employment or activities. The employee must also comply with any 

applicable recusal requirement of this subpart, as well as any applicable recusal 

requirements under subpart D or E of this part as a result of the employee’s outside 

employment activities.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

56

(2) Post-employment restrictions. An employee who is contemplating employment to be 

undertaken following the termination of the employee’s Federal employment should 

consult an agency ethics official to obtain advice regarding any post-employment 

restrictions that may be applicable. The regulation implementing the Government

wide post-employment statute, 18 U.S.C. 207, is contained in part 2641 of this 

chapter. Employees are cautioned that they may be subject to additional statutory 

prohibitions on post-employment acceptance of compensation from contractors, such 

as 41 U.S.C. 2104.

(3) Interview trips and entertainment. Where a prospective employer who is a prohibited 

source as defined in § 2635.203(d) offers to reimburse an employee’s travel expenses, 

or provide other reasonable amenities incident to employment discussions, the 

employee may accept such amenities in accordance with § 2635.204(e)(3). Where a 

prospective employer is a foreign government or international organization, the 

employee must also ensure that he or she is in compliance with the Foreign Gifts and 

Decorations Act, 5 U.S.C. 7342.

§ 2635.603 Definitions.

For purposes of this subpart:

(a) Employment means any form of non-Federal employment or business relationship 

involving the provision of personal services by the employee, whether to be undertaken at 

the same time as or subsequent to Federal employment. It includes but is not limited to 

personal services as an officer, director, employee, agent, attorney, consultant, contractor, 

general partner, or trustee.

Example 1 to paragraph (a): An employee of the Bureau of Indian Affairs who has 

announced her intention to retire is approached by tribal representatives concerning a 

possible consulting contract with the tribe. The contractual relationship the tribe wishes to 

negotiate is employment for purposes of this subpart.

Example 2 to paragraph (a): An employee of the Department of Health and Human 

Services is invited to a meeting with officials of a nonprofit corporation to discuss the 

possibility of his serving as a member of the corporation’s board of directors. Service, with 

or without compensation, as a member of the board of directors constitutes employment for 

purposes of this subpart.

Example 3 to paragraph (a): An employee at the Department of Energy volunteers without 

compensation to serve dinners at a homeless shelter each month. The employee’s 

uncompensated volunteer services in this case are not considered an employment or 

business relationship for purposes of this subpart.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

57

(b) An employee is seeking employment once the employee has begun seeking employment 

within the meaning of paragraph (b)(1) of this section and until the employee is no longer 

seeking employment within the meaning of paragraph (b)(2) of this section.

(1) An employee has begun seeking employment if the employee has directly or 

indirectly:

(i) Engaged in negotiations for employment with any person. For these purposes, 

as for 18 U.S.C. 208(a) and section 17 of the STOCK Act, the term negotiations

means discussion or communication with another person, or such person’s agent 

or intermediary, mutually conducted with a view toward reaching an agreement 

regarding possible employment with that person. The term is not limited to 

discussions of specific terms and conditions of employment in a specific 

position;

(ii) Made an unsolicited communication to any person, or such person’s agent or 

intermediary, regarding possible employment with that person. However, the 

employee has not begun seeking employment if that communication was for the 

sole purpose of requesting a job application; or

(iii) Made a response, other than rejection, to an unsolicited communication from 

any person, or such person’s agent or intermediary, regarding possible 

employment with that person.

(2) An employee is no longer seeking employment when:

(i) The employee or the prospective employer rejects the possibility of employment 

and all discussions of possible employment have terminated; or

(ii) Two months have transpired after the employee’s dispatch of an unsolicited 

resume or employment proposal, provided the employee has received no 

indication of interest in employment discussions from the prospective employer.

(3) For purposes of this definition, a response that defers discussions until the foreseeable

future does not constitute rejection of an unsolicited employment overture, proposal, 

or resume nor rejection of a prospective employment possibility.

Example 1 to paragraph (b): A paralegal at the Department of the Army is in his third

year of law school. During a discussion with his neighbor, who is a partner in a large law

firm in the community, the neighbor invited him to visit her law firm. The paralegal took

her up on the offer and met with an associate at the firm. The associate shared with the

paralegal her experiences looking for a legal position, discussed what she does in her

position at the law firm, and explained why she chose her current law firm. There was no
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

58

discussion of possible employment with the firm. The Army paralegal is not seeking

employment at this time. The purpose of the visit was informational only.

Example 2 to paragraph (b): An employee of the Defense Contract Audit Agency (DCAA) 

is auditing the overhead accounts of an Army contractor. While at the contractor’s

headquarters, the head of the contractor’s accounting division tells the employee that his 

division is thinking about hiring another accountant and asks whether the employee might 

be interested in leaving DCAA. The DCAA employee asks what kind of work would be 

involved. The DCAA employee has begun seeking employment because he made a response 

other than a rejection to the communication regarding possible employment with the Army 

contractor, although he has not yet begun negotiating for employment.

Example 3 to paragraph (b): The DCAA employee and the head of the contractor’s

accounting division in the previous example have a meeting to discuss the duties of the

position that the accounting division would like to fill and the DCAA employee’s

qualifications for the position. They also discuss ways the DCAA employee could remedy 

one of the missing qualifications, and the employee indicates a willingness to obtain the 

proper qualifications. They do not discuss salary. The employee has engaged in

negotiations regarding possible employment with the contractor.

Example 4 to paragraph (b): An employee at the Department of Energy (DOE) lists his job 

duties and employment experience in a profile on an online, business-oriented social

networking service. The employee’s profile is not targeted at a specific prospective

employer. The employee has not begun seeking employment because the posting of a 

profile or resume is not an unsolicited communication with any prospective employer.

Example 5 to paragraph (b): The DOE employee in the previous example was recently 

notified that a representative of a university has viewed his profile. The employee still has 

not begun seeking employment with the university. Subsequently, a representative of the

university contacts the employee through the online forum to inquire whether the employee 

would be interested in working for the university, to which he makes a response other than 

rejection. At this point, the employee has begun seeking employment with the university 

until he rejects the possibility of employment and all discussions of possible employment 

have terminated.

Example 6 to paragraph (b): The DOE employee in the previous two examples receives 

emails from various companies in response to his online profile. He does not respond. The 

employee has not begun seeking employment with the companies because he has not made 

a response.

Example 7 to paragraph (b): An employee of the Centers for Medicare & Medicaid

Services (CMS) is complimented on her work by an official of a State Health Department

who asks her to call if she is ever interested in leaving Federal service. The employee

explains to the State official that she is very happy with her job at CMS and is not
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

59

interested in another job. She thanks him for his compliment regarding her work and adds

that she’ll remember his interest if she ever decides to leave the Government. The employee 

has rejected the unsolicited employment overture and has not begun seeking employment.

Example 8 to paragraph (b): The employee in the preceding example responds by stating

that she cannot discuss future employment while she is working on a project affecting the 

State’s health care funding but would like to discuss employment with the State when the 

project is completed. Because the employee has merely deferred employment discussions 

until the foreseeable future, she has begun seeking employment with the State Health 

Department.

Example 9 to paragraph (b): Three months prior to the end of the current administration,

a political appointee at a large department receives a telephone call from the managing

partner of an international law firm. The managing partner asks if the official would be

interested in joining the law firm. The official says, ‘‘I am not talking to anyone about

employment until I leave the Government.’’ The official has rejected the unsolicited

employment overture and has not begun seeking employment.

Example 10 to paragraph (b): A geologist employed by the U.S. Geological Survey sends 

her resume to an oil company. The geologist has begun seeking employment with that oil 

company and will be seeking employment for two months from the date the resume was 

mailed, provided she does not receive a response indicating an interest in employment 

discussions. A letter merely acknowledging receipt of the resume is not an indication of 

interest in employment discussions. However, if she withdraws her application or is 

notified within the two-month period that her resume has been rejected, she will no longer 

be seeking employment with the oil company as of the date she makes such withdrawal or 

receives such notification.

(c) Prospective employer means any person with whom the employee is seeking employment. 

Where contacts that constitute seeking employment are made by or with an agent or other 

intermediary, the term prospective employer means:

(1) A person who uses that agent or other intermediary for the purpose of seeking to 

establish an employment relationship with the employee if the agent identifies the 

prospective employer to the employee; and

(2) A person contacted by the employee’s agent or other intermediary for the purpose of 

seeking to establish an employment relationship if the agent identifies the prospective 

employer to the employee.

Example 1 to paragraph (c): An employee of the Federal Aviation Administration (FAA)

has retained an employment search firm to help her find another job. The search firm has 

just reported to the FAA employee that it has given her resume to and had promising 

discussions with two airport authorities, which the search firm identifies to the employee. 
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

60

Even though the employee has not personally had employment discussions with either

airport authority, each airport authority is her prospective employer. She began seeking 

employment with each airport authority upon learning its identity and that it has been 

given her resume.

Example 2 to paragraph (c): An employee pays for an online resume distribution service, 

which sends her resume to recruiters that specialize in her field. The online service has just 

notified her that it sent her resume to Software Company A and Software Company B. Even 

though the employee has not personally had employment discussions with either company, 

each software company is her prospective employer. She began seeking employment with 

each company upon learning from the online service that Software Company A and 

Software Company B had been given her resume by the intermediary.

(d) Direct and predictable effect, particular matter, and personal and substantial have the 

respective meanings set forth in § 2635.402(b)(1), (3), and (4).

(e) Public filer means a person required to file a public financial disclosure report as set forth 

in § 2634.202 of this chapter.

§ 2635.604 Recusal while seeking employment.

(a) Obligation to recuse.

(1) Except as provided in paragraph (a)(2) of this section or where the employee’s 

participation has been authorized in accordance with § 2635.605, the employee may 

not participate personally and substantially in a particular matter that, to the 

employee’s knowledge, has a direct and predictable effect on the financial interests of 

a prospective employer with whom the employee is seeking employment within the 

meaning of § 2635.603(b). Recusal is accomplished by not participating in the 

particular matter.

(2) The employee may participate in a particular matter under paragraph (a)(1) of this 

section when:

(i) The employee’s only communication with the prospective employer in 

connection with the search for employment is the submission of an unsolicited 

resume or other employment proposal;

(ii) The prospective employer has not responded to the employee’s unsolicited 

communication with a response indicating an interest in employment 

discussions; and

(iii) The matter is not a particular matter involving specific parties.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

61

Example 1 to paragraph (a): A scientist is employed by the National Science Foundation 

(NSF) as a special Government employee to serve on a panel that reviews grant 

applications to fund research relating to deterioration of the ozone layer. She is discussing 

possible employment with a university that received an NSF grant several years ago to 

study the effect of fluorocarbons but has no current grant applications pending before NSF. 

The employee is seeking employment, but she does not need to recuse because there is no 

particular matter that would have a direct and predictable effect on the financial interests 

of the prospective employer. Recusal would be required if the university submits a new 

application for the panel’s review.

Example 2 to paragraph (a): An employee of the Food and Drug Administration is 

developing a regulation on research criteria for approving prescription drugs. She begins 

discussing possible employment with a pharmaceutical company. The employee may not 

participate personally and substantially in the development of the regulation because she 

has begun employment discussions with the pharmaceutical company and the regulation is 

a particular matter of general applicability which would have a direct and predictable 

effect on the financial interests of the pharmaceutical company.

Example 3 to paragraph (a): A special Government employee of the Federal Deposit 

Insurance Corporation (FDIC) is assigned to advise the FDIC on rules applicable to all 

member banks. She mails an unsolicited letter to a member bank offering her services as a 

contract consultant. Although the employee is seeking employment, the employee may 

participate in this particular matter of general applicability until she receives some 

response indicating an interest in discussing her employment proposal. A letter merely 

acknowledging receipt of the proposal is not an indication of interest in employment 

discussions.

Example 4 to paragraph (a): An employee of the Occupational Safety and Health 

Administration is conducting an inspection of one of several textile companies to which he 

sent an unsolicited resume. The employee may not participate personally and substantially 

in the inspection because he is seeking employment and the inspection is a particular 

matter involving specific parties that will affect the textile company.

(b) Notification. An employee who becomes aware of the need to recuse from participation in 

a particular matter to which the employee has been assigned must take whatever steps are 

necessary to ensure that the employee does not participate in the matter. Appropriate oral 

or written notification of the employee’s recusal may be made to an agency ethics official, 

coworkers, or a supervisor to document and help effectuate the employee’s recusal. Public 

filers must comply with additional notification requirements set forth in § 2635.607.

Example 1 to paragraph (b): An employee of the Department of Veterans Affairs (VA) is 

participating in the audit of a contract for laboratory support services. Before sending his 

resume to a lab which is a subcontractor under the VA contract, the employee should 

recuse from participation in the audit. Since he cannot withdraw from participation in the 
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

62

contract audit without the approval of his supervisor, he should notify his supervisor of his 

need to recuse for ethics reasons so that appropriate adjustments in his work assignments 

can be made.

Example 2 to paragraph (b): An employee of the Food and Drug Administration (FDA) is 

contacted in writing by a pharmaceutical company concerning possible employment with 

the company. The employee is reviewing an application from the same pharmaceutical 

company, which is seeking FDA approval for a new drug product. Once the employee 

makes a response that is not a rejection to the company’s communication concerning 

possible employment, the employee must recuse from further participation in the review of 

the application. Where he has authority to ask his colleague to assume his reviewing 

responsibilities, he may accomplish his recusal by transferring the work to the employee 

designated to cover for him. However, to ensure that his colleague and others with whom 

he had been working on the review do not seek his advice regarding the review of the 

application or otherwise involve him in the matter, it may be necessary for him to advise 

those individuals of his recusal.

(c) Documentation. An employee, other than a public filer, need not file a written recusal 

statement unless the employee is required by part 2634 of this chapter to file written 

evidence of compliance with an ethics agreement with the Office of Government Ethics or 

a designated agency ethics official, or is specifically directed by an agency ethics official or 

the person responsible for the employee’s assignment to file a written recusal statement. 

However, it is often prudent for an employee to create a record of his or her actions by 

providing written notice to an agency ethics official, a supervisor, or other appropriate 

official. Public filers must comply with the documentation requirements set forth in 

§ 2635.607.

Example 1 to paragraph (c): The General Counsel of a regulatory agency will be 

engaging in discussions regarding possible employment as corporate counsel of a 

regulated entity. Matters directly affecting the financial interests of the regulated entity are 

pending within the Office of General Counsel, but the General Counsel will not be called 

upon to act in any such matter because signature authority for that particular class of 

matters has been delegated to an Assistant General Counsel. Because the General Counsel 

is responsible for assigning work within the Office of General Counsel, he can in fact 

accomplish his recusal by simply avoiding any involvement in matters affecting the 

regulated entity. However, because it is likely to be assumed by others that the General 

Counsel is involved in all matters within the cognizance of the Office of General Counsel, 

he would benefit from filing a written recusal statement with an agency ethics official or 

the Commissioners of the regulatory agency and providing his subordinates with written 

notification of his recusal. He may also be specifically directed by an agency ethics official 

or the Commissioners to file a written recusal statement. If the General Counsel is a public

filer, he must comply with the documentation requirements set forth in § 2635.607.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

63

(d) Agency determination of substantial conflict. Where the agency determines that the 

employee’s action in seeking employment with a particular person will require the 

employee’s recusal from matters so central or critical to the performance of the employee’s

official duties that the employee’s ability to perform the duties of the employee’s position 

would be materially impaired, the agency may allow the employee to take annual leave or 

leave without pay while seeking employment, or may take other appropriate action.

§ 2635.605 Waiver or authorization permitting participation while seeking employment.

(a) Waiver. Where, as defined in § 2635.603(b)(1)(i), an employee is engaged in employment 

negotiations for purposes of 18 U.S.C. 208(a), the employee may not participate personally 

and substantially in a particular matter that, to the employee’s knowledge, has a direct and 

predictable effect on the financial interests of a prospective employer. The employee may 

participate in such matters only where the employee has received a written waiver issued 

under the authority of 18 U.S.C. 208(b)(1) or (3). These waivers are described in 

§ 2635.402(d) and part 2640, subpart C of this chapter. For certain employees, a regulatory 

exemption under the authority of 18 U.S.C. 208(b)(2) may also apply (see part 2640, 

subpart B of this chapter), including § 2640.203(g) and (i).

Example 1 to paragraph (a): An employee of the Department of Agriculture is negotiating 

for employment within the meaning of 18 U.S.C. 208(a) and § 2635.603(b)(1)(i) with an 

orange grower. In the absence of a written waiver issued under 18 U.S.C. 208(b)(1), she 

may not take official action on a complaint filed by a competitor alleging that the grower 

has shipped oranges in violation of applicable quotas.

(b) Authorization by agency designee. Where an employee is seeking employment within the 

meaning of § 2635.603(b)(1)(ii) or (iii) and is not negotiating for employment, a reasonable 

person would be likely to question the employee’s impartiality if the employee were to 

participate personally and substantially in a particular matter that, to the employee’s 

knowledge, has a direct and predictable effect on the financial interests of any such 

prospective employer. The employee may participate in such matters only where the 

agency designee has authorized in writing the employee’s participation in accordance with 

the standards set forth in § 2635.502(d).

Example 1 to paragraph (b): Within the past month, an employee of the Department of 

Education mailed her resume to a university. She is thus seeking employment with the 

university within the meaning of § 2635.603(b)(1)(ii). In the absence of specific 

authorization by the agency designee in accordance with § 2635.502(d), she may not 

participate personally and substantially in an assignment to review a grant application 

submitted by the university.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

64

§ 2635.606 Recusal based on an arrangement concerning prospective employment or 

otherwise after negotiations.

(a) Employment or arrangement concerning employment. An employee may not participate

personally and substantially in a particular matter that, to the employee’s knowledge, has a 

direct and predictable effect on the financial interests of the person by whom he or she is 

employed or with whom he or she has an arrangement concerning future employment, 

unless authorized to participate in the matter by a written waiver issued under the authority 

of 18 U.S.C. 208(b)(1) or (3), or by a regulatory exemption under the authority of 

18 U.S.C. 208(b)(2). These waivers and exemptions are described in § 2635.402(d) and 

part 2640, subparts B and C of this chapter.

Example 1 to paragraph (a): A military officer has accepted a job with a defense 

contractor that will begin in six months, after his retirement from military service. During 

the period that he remains with the Government, the officer may not participate personally 

and substantially in the administration of a contract with that particular defense contractor 

unless he has received a written waiver under the authority of 18 U.S.C. 208(b)(1).

Example 2 to paragraph (a): An accountant has just been offered a job with the Office of 

the Comptroller of the Currency (OCC) which involves a two-year limited appointment. 

Her private employer, a large corporation, believes the job will enhance her skills and has 

agreed to give her a two-year unpaid leave of absence at the end of which she has agreed 

to return to work for the corporation. During the two-year period that she is to be an OCC

employee, the accountant will have an arrangement concerning future employment with the 

corporation that will require her recusal from participation personally and substantially in 

any particular matter that, to her knowledge, will have a direct and predictable effect on 

the corporation’s financial interests.

(b) Offer rejected or not made. The agency designee for the purpose of § 2635.502(c) may, in 

an appropriate case, determine that an employee not covered by the preceding paragraph 

who has sought but is no longer seeking employment nevertheless will be subject to a 

period of recusal upon the conclusion of employment negotiations. Any such determination 

will be based on a consideration of all the relevant factors, including those listed in 

§ 2635.502(d), and a determination that the concern that a reasonable person may question 

the integrity of the agency’s decision-making process outweighs the Government’s interest 

in the employee’s participation in the particular matter.

Example 1 to paragraph (b): An employee of the Securities and Exchange Commission 

was relieved of responsibility for an investigation of a broker-dealer while seeking 

employment with the law firm representing the broker-dealer in that matter. The firm did 

not offer her the partnership position she sought. Even though she is no longer seeking 

employment with the firm, she may continue to be recused from participating in the 

investigation based on a determination by the agency designee that the concern that a 

reasonable person might question whether, in view of the history of the employment 
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

65

negotiations, she could act impartially in the matter outweighs the Government’s interest in 

her participation.

§ 2635.607 Notification requirements for public financial disclosure report filers 

regarding negotiations for or agreement of future employment or compensation.

(a) Notification regarding negotiations for or agreement of future employment or 

compensation. A public filer who is negotiating for or has an agreement of future 

employment or compensation with a non-Federal entity must file a statement notifying an 

agency ethics official of such negotiation or agreement within three business days after 

commencement of the negotiation or agreement. This notification statement must be in 

writing, must be signed by the public filer, and must include the name of the non-Federal 

entity involved in such negotiation or agreement and the date on which the negotiation or 

agreement commenced. When a public filer has previously complied with the notification 

requirement in this section regarding the commencement of negotiations, the filer need not 

file a separate notification statement when an agreement of future employment or 

compensation is reached with the previously identified non-Federal entity. There is also no 

requirement to file another notification when negotiations have been unsuccessful. 

However, employees may want to do so to facilitate the resumption of their duties.

Example 1 to paragraph (a): An employee of the Merit Systems Protection Board who is a 

public filer was in private practice prior to his Government service. He receives a 

telephone call from a partner in a law firm who inquires as to whether he would be 

interested in returning to private practice. During this initial telephone call with the law 

firm partner, the employee indicates that he is interested in resuming private practice. They 

discuss generally the types of issues that would need to be agreed upon if the employee 

were to consider a possible offer to serve as ‘‘of counsel’’ with the firm, such as salary, 

benefits, and type of work the employee would perform. The employee has begun 

negotiating for future employment with the law firm. Within three business days after this 

initial telephone call, he must file written notification of the negotiations with his agency 

ethics official.

Example 2 to paragraph (a): The employee in the previous example also negotiates a 

possible contract with a publisher to begin writing a textbook after he leaves Government 

service. Within three business days after commencing negotiations, the employee must file 

written notification with his agency ethics official documenting that he is engaged in 

negotiations for future compensation with the book publisher.

(b) Notification of recusal. A public filer who files a notification statement pursuant to 

paragraph (a) of this section must file with an agency ethics official a notification of recusal 

whenever there is a conflict of interest or appearance of a conflict of interest with the nonFederal entity identified in the notification statement. The notification statement and the 

recusal statement may be contained in a single document or in separate documents.
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

66

(c) Advance filing of notification and recusal statements. When a public filer is seeking 

employment within the meaning of § 2635.603(b)(1)(ii) or (iii) or is considering seeking 

employment, the public filer may elect to file the notification statement pursuant to 

paragraph (a) of this section before negotiations have commenced and before an agreement 

of future employment or compensation is reached. A public filer may also elect to file the 

recusal statement pursuant to paragraph (b) of this section before the public filer has a 

conflict of interest or appearance of a conflict of interest with the non-Federal entity 

identified in the notification statement. The public filer need not file the document again 

upon commencing negotiations or reaching an agreement of future employment or 

compensation. The advance filing of any such document is not construed as a statement 

that negotiations have or have not commenced or that a conflict of interest does or does not 

exist. Although the Office of Government Ethics encourages advance filing when a public 

filer anticipates a realistic possibility of negotiations or an agreement, the failure to make 

an advance filing does not violate this subpart or the principles of ethical conduct contained 

in § 2635.101(b).

Example 1 to paragraph (c): An employee of the Federal Labor Relations Authority who is 

a public filer began negotiating for future employment with a law firm. At the time he 

began negotiating for future employment with the law firm, he was not participating 

personally and substantially in a particular matter that, to his knowledge, had a direct and 

predictable effect on the financial interest of the law firm. Although the employee was not 

required to file a recusal statement because he did not have a conflict of interest or 

appearance of a conflict of interest with the law firm identified in the notification 

statement, the Office of Government Ethics encourages the employee to submit a 

notification of recusal at the same time that he files the notification statement regarding the 

negotiations for future employment in order to ensure that the requirement of paragraph 

(b) of this section is satisfied if a conflict of interest or an appearance of a conflict of 

interest later arises. The agency ethics official should counsel the employee on applicable 

requirements but is under no obligation to notify the employee’s supervisor that the 

employee is negotiating for employment.

Example 2 to paragraph (c): An employee of the General Services Administration is 

contacted by a prospective employer regarding scheduling an interview for the following 

week to begin discussing the possibility of future employment. The employee discusses the 

matter with the ethics official and chooses to file a notification and recusal statement prior 

to the interview. The notification and recusal statement contain the identity of the 

prospective employer and an estimated date of when the interview will occur. The 

employee has complied with the notification requirement of section 17 of the STOCK Act.

(d) Agreement of future employment or compensation for the purposes of § 2635.607 means 

any arrangement concerning employment that will commence after the termination of 

Government service. The term also means any arrangement to compensate in exchange for 

services that will commence after the termination of Government service. The term 
Subpart F—Seeking Other Employment

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

67

includes, among other things, an arrangement to compensate for teaching, speaking, or 

writing that will commence after the termination of Government service.
Subpart G—Misuse of Position

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

68

SUBPART G—MISUSE OF POSITION

§ 2635.701 Overview.

This subpart contains provisions relating to the proper use of official time and authority, and of 

information and resources to which an employee has access because of his Federal employment. 

This subpart sets forth standards relating to:

(a) Use of public office for private gain;

(b) Use of nonpublic information;

(c) Use of Government property; and

(d) Use of official time.

§ 2635.702 Use of public office for private gain.

An employee shall not use his public office for his own private gain, for the endorsement of any 

product, service or enterprise, or for the private gain of friends, relatives, or persons with whom 

the employee is affiliated in a nongovernmental capacity, including nonprofit organizations of 

which the employee is an officer or member, and persons with whom the employee has or seeks 

employment or business relations. The specific prohibitions set forth in paragraphs (a) through 

(d) of this section apply this general standard, but are not intended to be exclusive or to limit the 

application of this section.

(a) Inducement or coercion of benefits. An employee shall not use or permit the use of his 

Government position or title or any authority associated with his public office in a manner

that is intended to coerce or induce another person, including a subordinate, to provide any 

benefit, financial or otherwise, to himself or to friends, relatives, or persons with whom the 

employee is affiliated in a nongovernmental capacity.

Example 1: Offering to pursue a relative’s consumer complaint over a household 

appliance, an employee of the Securities and Exchange Commission called the general 

counsel of the manufacturer and, in the course of discussing the problem, stated that he 

worked at the SEC and was responsible for reviewing the company’s filings. The employee 

violated the prohibition against use of public office for private gain by invoking his official 

authority in an attempt to influence action to benefit his relative.

Example 2: An employee of the Department of Commerce was asked by a friend to 

determine why his firm’s export license had not yet been granted by another office within 

the Department of Commerce. At a department-level staff meeting, the employee raised as 

a matter for official inquiry the delay in approval of the particular license and asked that 
Subpart G—Misuse of Position

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

69

the particular license be expedited. The official used her public office in an attempt to 

benefit her friend and, in acting as her friend’s agent for the purpose of pursuing the export 

license with the Department of Commerce, may also have violated 18 U.S.C. 205.

(b) Appearance of governmental sanction. Except as otherwise provided in this part, an 

employee shall not use or permit the use of his Government position or title or any 

authority associated with his public office in a manner that could reasonably be construed 

to imply that his agency or the Government sanctions or endorses his personal activities or 

those of another. When teaching, speaking, or writing in a personal capacity, he may refer 

to his official title or position only as permitted by § 2635.807(b). He may sign a letter of 

recommendation using his official title only in response to a request for an employment 

recommendation or character reference based upon personal knowledge of the ability or 

character of an individual with whom he has dealt in the course of Federal employment or 

whom he is recommending for Federal employment.

Example 1: An employee of the Department of the Treasury who is asked to provide a 

letter of recommendation for a former subordinate on his staff may provide the 

recommendation using official stationery and may sign the letter using his official title. If, 

however, the request is for the recommendation of a personal friend with whom he has not 

dealt in the Government, the employee should not use official stationery or sign the letter of 

recommendation using his official title, unless the recommendation is for Federal 

employment. In writing the letter of recommendation for his personal friend, it may be 

appropriate for the employee to refer to his official position in the body of the letter.

(c) Endorsements. An employee shall not use or permit the use of his Government position or 

title or any authority associated with his public office to endorse any product, service or 

enterprise except:

(1) In furtherance of statutory authority to promote products, services or enterprises; or

(2) As a result of documentation of compliance with agency requirements or standards or 

as the result of recognition for achievement given under an agency program of 

recognition for accomplishment in support of the agency’s mission.

Example 1: A Commissioner of the Consumer Product Safety Commission may not appear 

in a television commercial in which she endorses an electrical appliance produced by her 

former employer, stating that it has been found by the CPSC to be safe for residential use.

Example 2: A Foreign Commercial Service officer from the Department of Commerce is 

asked by a United States telecommunications company to meet with representatives of the 

Government of Spain, which is in the process of procuring telecommunications services 

and equipment. The company is bidding against five European companies and the statutory 

mission of the Department of Commerce includes assisting the export activities of U.S. 

companies. As part of his official duties, the Foreign Commercial Service officer may meet 
Subpart G—Misuse of Position

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

70

with Spanish officials and explain the advantages of procurement from the United States 

company.

Example 3: The Administrator of the Environmental Protection Agency may sign a letter 

to an oil company indicating that its refining operations are in compliance with Federal air 

quality standards even though he knows that the company has routinely displayed letters of 

this type in television commercials portraying it as a “trustee of the environment for future 

generations.”

Example 4: An Assistant Attorney General may not use his official title or refer to his 

Government position in a book jacket endorsement of a novel about organized crime 

written by an author whose work he admires. Nor may he do so in a book review published 

in a newspaper.

(d) Performance of official duties affecting a private interest. To ensure that the performance 

of his official duties does not give rise to an appearance of use of public office for private 

gain or of giving preferential treatment, an employee whose duties would affect the 

financial interests of a friend, relative or person with whom he is affiliated in a 

nongovernmental capacity shall comply with any applicable requirements of § 2635.502.

(e) Use of terms of address and ranks. Nothing in this section prohibits an employee who is 

ordinarily addressed using a general term of address, such as “The Honorable”, or a rank, 

such as a military or ambassadorial rank, from using that term of address or rank in 

connection with a personal activity.

§ 2635.703 Use of nonpublic information.

(a) Prohibition. An employee shall not engage in a financial transaction using nonpublic 

information, nor allow the improper use of nonpublic information to further his own private 

interest or that of another, whether through advice or recommendation, or by knowing 

unauthorized disclosure.

(b) Definition of nonpublic information. For purposes of this section, nonpublic information is 

information that the employee gains by reason of Federal employment and that he knows or 

reasonably should know has not been made available to the general public. It includes 

information that he knows or reasonably should know:

(1) Is routinely exempt from disclosure under 5 U.S.C. 552 or otherwise protected from 

disclosure by statute, Executive order or regulation;

(2) Is designated as confidential by an agency; or

(3) Has not actually been disseminated to the general public and is not authorized to be 

made available to the public on request.
Subpart G—Misuse of Position

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

71

Example 1: A Navy employee learns in the course of her duties that a small corporation 

will be awarded a Navy contract for electrical test equipment. She may not take any action 

to purchase stock in the corporation or its suppliers and she may not advise friends or 

relatives to do so until after public announcement of the award. Such actions could violate 

Federal securities statutes as well as this section.

Example 2: A General Services Administration employee involved in evaluating proposals 

for a construction contract cannot disclose the terms of a competing proposal to a friend 

employed by a company bidding on the work. Prior to award of the contract, bid or 

proposal information is nonpublic information specifically protected by 41 U.S.C. 423.

Example 3: An employee is a member of a source selection team assigned to review the 

proposals submitted by several companies in response to an Army solicitation for spare 

parts. As a member of the evaluation team, the employee has access to proprietary 

information regarding the production methods of Alpha Corporation, one of the 

competitors. He may not use that information to assist Beta Company in drafting a 

proposal to compete for a Navy spare parts contract. The Federal Acquisition Regulation 

in 48 CFR parts 3, 14 and 15 restricts the release of information related to procurements 

and other contractor information that must be protected under 18 U.S.C. 1905 and 

41 U.S.C. 423.

Example 4: An employee of the Nuclear Regulatory Commission inadvertently includes a 

document that is exempt from disclosure with a group of documents released in response to 

a Freedom of Information Act request. Regardless of whether the document is used 

improperly, the employee’s disclosure does not violate this section because it was not a 

knowing unauthorized disclosure made for the purpose of furthering a private interest.

Example 5: An employee of the Army Corps of Engineers is actively involved in the 

activities of an organization whose goals relate to protection of the environment. The 

employee may not, other than as permitted by agency procedures, give the organization or 

a newspaper reporter nonpublic information about long-range plans to build a particular 

dam.

§ 2635.704 Use of Government property.

(a) Standard. An employee has a duty to protect and conserve Government property and shall 

not use such property, or allow its use, for other than authorized purposes.

(b) Definitions. For purposes of this section:

(1) Government property includes any form of real or personal property in which the 

Government has an ownership, leasehold, or other property interest as well as any 

right or other intangible interest that is purchased with Government funds, including 

the services of contractor personnel. The term includes office supplies, telephone and 
Subpart G—Misuse of Position

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

72

other telecommunications equipment and services, the Government mails, automated 

data processing capabilities, printing and reproduction facilities, Government records, 

and Government vehicles.

(2) Authorized purposes are those purposes for which Government property is made 

available to members of the public or those purposes authorized in accordance with 

law or regulation.

Example 1: Under regulations of the General Services Administration at 41 CFR 

101–35.201, an employee may make a personal long distance call charged to her personal 

calling card.

Example 2: An employee of the Commodity Futures Trading Commission whose office 

computer gives him access to a commercial service providing information for investors 

may not use that service for personal investment research.

Example 3: In accordance with Office of Personnel Management regulations at part 251 

of this title, an attorney employed by the Department of Justice may be permitted to use her 

office word processor and agency photocopy equipment to prepare a paper to be presented 

at a conference sponsored by a professional association of which she is a member.

§ 2635.705 Use of official time.

(a) Use of an employee’s own time. Unless authorized in accordance with law or regulations to 

use such time for other purposes, an employee shall use official time in an honest effort to 

perform official duties. An employee not under a leave system, including a Presidential 

appointee exempted under 5 U.S.C. 6301(2), has an obligation to expend an honest effort 

and a reasonable proportion of his time in the performance of official duties.

Example 1: An employee of the Social Security Administration may use official time to 

engage in certain representational activities on behalf of the employee union of which she 

is a member. Under 5 U.S.C. 7131, this is a proper use of her official time even though it 

does not involve performance of her assigned duties as a disability claims examiner.

Example 2: A pharmacist employed by the Department of Veterans Affairs has been 

granted excused absence to participate as a speaker in a conference on drug abuse 

sponsored by the professional association to which he belongs. Although excused absence 

granted by an agency in accordance with guidance in chapter 630 of the Federal 

Personnel Manual allows an employee to be absent from his official duties without charge 

to his annual leave account, such absence is not on official time.

(b) Use of a subordinate’s time. An employee shall not encourage, direct, coerce, or request a 

subordinate to use official time to perform activities other than those required in the 

performance of official duties or authorized in accordance with law or regulation.
Subpart G—Misuse of Position

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

73

Example 1: An employee of the Department of Housing and Urban Development may not 

ask his secretary to type his personal correspondence during duty hours. Further, directing 

or coercing a subordinate to perform such activities during nonduty hours constitutes an 

improper use of public office for private gain in violation of § 2635.702(a). Where the 

arrangement is entirely voluntary and appropriate compensation is paid, the secretary may 

type the correspondence at home on her own time. Where the compensation is not 

adequate, however, the arrangement would involve a gift to the superior in violation of the 

standards in subpart C of this part.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

74

SUBPART H—OUTSIDE ACTIVITIES

§ 2635.801 Overview.

(a) This subpart contains provisions relating to outside employment, outside activities and 

personal financial obligations of employees that are in addition to the principles and 

standards set forth in other subparts of this part. Several of these provisions apply to 

uncompensated as well as to compensated outside activities.

(b) An employee who wishes to engage in outside employment or other outside activities must 

comply with all relevant provisions of this subpart, including, when applicable:

(1) The prohibition on outside employment or any other outside activity that conflicts 

with the employee’s official duties;

(2) Any agency-specific requirement for prior approval of outside employment or 

activities;

(3) The limitations on receipt of outside earned income by certain Presidential appointees 

and other noncareer employees;

(4) The limitations on paid and unpaid service as an expert witness;

(5) The limitations on participation in professional organizations;

(6) The limitations on paid and unpaid teaching, speaking, and writing; and

(7) The limitations on fundraising activities.

(c) Outside employment and other outside activities of an employee must also comply with 

applicable provisions set forth in other subparts of this part and in supplemental agency 

regulations. These include the principle that an employee shall endeavor to avoid actions 

creating an appearance of violating any of the ethical standards in this part and the 

prohibition against use of official position for an employee’s private gain or for the private 

gain of any person with whom he has employment or business relations or is otherwise 

affiliated in a nongovernmental capacity.

(d) In addition to the provisions of this and other subparts of this part, an employee who wishes 

to engage in outside employment or other outside activities must comply with applicable 

statutes and regulations. Relevant provisions of law, many of which are listed in subpart I 

of this part, may include:
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

75

(1) 18 U.S.C. 201(b), which prohibits a public official from seeking, accepting or 

agreeing to receive or accept anything of value in return for being influenced in the 

performance of an official act or for being induced to take or omit to take any action 

in violation of his official duty;

(2) 18 U.S.C. 201(c), which prohibits a public official, otherwise than as provided by law 

for the proper discharge of official duty, from seeking, accepting, or agreeing to 

receive or accept anything of value for or because of any official act;

(3) 18 U.S.C. 203(a), which prohibits an employee from seeking, accepting, or agreeing 

to receive or accept compensation for any representational services, rendered 

personally or by another, in relation to any particular matter in which the United 

States is a party or has a direct and substantial interest, before any department, 

agency, or other specified entity. This statute contains several exceptions, as well as 

standards for special Government employees that limit the scope of the restriction;

(4) 18 U.S.C. 205, which prohibits an employee, whether or not for compensation, from 

acting as agent or attorney for anyone in a claim against the United States or from 

acting as agent or attorney for anyone, before any department, agency, or other 

specified entity, in any particular matter in which the United States is a party or has a 

direct and substantial interest. It also prohibits receipt of any gratuity, or any share of 

or interest in a claim against the United States, in consideration for assisting in the 

prosecution of such claim. This statute contains several exceptions, as well as 

standards for special Government employees that limit the scope of the restrictions;

(5) 18 U.S.C. 209, which prohibits an employee, other than a special Government 

employee, from receiving any salary or any contribution to or supplementation of 

salary from any source other than the United States as compensation for services as a 

Government employee. The statute contains several exceptions that limit its 

applicability;

(6) The Emoluments Clause of the United States Constitution, article I, section 9, 

clause 8, which prohibits anyone holding an office of profit or trust under the United 

States from accepting any gift, office, title or emolument, including salary or 

compensation, from any foreign government except as authorized by Congress. In 

addition, 18 U.S.C. 219 generally prohibits any public official from being or acting as 

an agent of a foreign principal, including a foreign government, corporation or 

person, if the employee would be required to register as a foreign agent under 22 

U.S.C. 611 et seq.; 

(7) The Hatch Act Reform Amendments, 5 U.S.C. 7321 through 7326, which govern the 

political activities of executive branch employees; and
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

76

(8) The limitations on outside employment, 5 U.S.C. App. (Ethics in Government Act of 

1978), which prohibit a covered noncareer employee’s receipt of compensation for 

specified activities and provide that he shall not allow his name to be used by any 

firm or other entity which provides professional services involving a fiduciary 

relationship. Implementing regulations are contained in §§ 2636.305 through 

2636.307 of this chapter.

§ 2635.802 Conflicting outside employment and activities.

An employee shall not engage in outside employment or any other outside activity that conflicts 

with his official duties. An activity conflicts with an employee’s official duties:

(a) If it is prohibited by statute or by an agency supplemental regulation; or

(b) If, under the standards set forth in §§ 2635.402 and 2635.502, it would require the 

employee’s disqualification from matters so central or critical to the performance of his 

official duties that the employee’s ability to perform the duties of his position would be 

materially impaired.

Employees are cautioned that even though an outside activity may not be prohibited under 

this section, it may violate other principles or standards set forth in this part or require the 

employee to disqualify himself from participation in certain particular matters under either 

subpart D or subpart E of this part.

Example 1: An employee of the Environmental Protection Agency has just been promoted. 

His principal duty in his new position is to write regulations relating to the disposal of 

hazardous waste. The employee may not continue to serve as president of a nonprofit 

environmental organization that routinely submits comments on such regulations. His 

service as an officer would require his disqualification from duties critical to the 

performance of his official duties on a basis so frequent as to materially impair his ability 

to perform the duties of his position.

Example 2: An employee of the Occupational Safety and Health Administration who was 

and is expected again to be instrumental in formulating new OSHA safety standards 

applicable to manufacturers that use chemical solvents has been offered a consulting 

contract to provide advice to an affected company in restructuring its manufacturing 

operations to comply with the OSHA standards. The employee should not enter into the 

consulting arrangement even though he is not currently working on OSHA standards 

affecting this industry and his consulting contract can be expected to be completed before 

he again works on such standards. Even though the consulting arrangement would not be a 

conflicting activity within the meaning of § 2635.802, it would create an appearance that 

the employee had used his official position to obtain the compensated outside business 

opportunity and it would create the further appearance of using his public office for the 

private gain of the manufacturer.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

77

§ 2635.803 Prior approval for outside employment and activities.

When required by agency supplemental regulation issued after February 3, 1993, an employee 

shall obtain prior approval before engaging in outside employment or activities. Where it is 

determined to be necessary or desirable for the purpose of administering its ethics program, an 

agency shall, by supplemental regulation, require employees or any category of employees to 

obtain prior approval before engaging in specific types of outside activities, including outside 

employment.

§ 2635.804 Outside earned income limitations applicable to certain Presidential 

appointees and other noncareer employees.

(a) Presidential appointees to full-time noncareer positions. A Presidential appointee to a fulltime noncareer position shall not receive any outside earned income for outside 

employment, or for any other outside activity, performed during that Presidential 

appointment. This limitation does not apply to any outside earned income received for 

outside employment, or for any other outside activity, carried out in satisfaction of the 

employee’s obligation under a contract entered into prior to April 12, 1989.

(b) Covered noncareer employees. Covered noncareer employees, as defined in § 2636.303(a) 

of this chapter, may not, in any calendar year, receive outside earned income attributable to 

that calendar year which exceeds 15 percent of the annual rate of basic pay for level II of 

the Executive Schedule under 5 U.S.C. 5313, as in effect on January 1 of such calendar 

year. Employees should consult the regulations implementing this limitation, which are 

contained in §§ 2636.301 through 2636.304 of this chapter.

Note: In addition to the 15 percent limitation on outside earned income, covered noncareer 

employees are prohibited from receiving any compensation for: practicing a profession 

which involves a fiduciary relationship; affiliating with or being employed by a firm or 

other entity which provides professional services involving a fiduciary relationship; serving 

as an officer or member of the board of any association, corporation or other entity; or 

teaching without prior approval. Implementing regulations are contained in §§ 2636.305 

through 2636.307 of this chapter.

(c) Definitions. For purposes of this section:

(1) Outside earned income has the meaning set forth in § 2636.303(b) of this chapter, 

except that § 2636.303(b)(7) shall not apply.

(2) Presidential appointee to a full-time noncareer position means any employee who is 

appointed by the President to a full-time position described in 5 U.S.C. 5312 through 

5317 or to a position that, by statute or as a matter of practice, is filled by Presidential 

appointment, other than:
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

78

(i) A position filled under the authority of 3 U.S.C. 105 or 3 U.S.C. 107(a) for 

which the rate of basic pay is less than that for GS–9, step 1 of the General 

Schedule;

(ii) A position, within a White House operating unit, that is designated as not 

normally subject to change as a result of a Presidential transition;

(iii) A position within the uniformed services; or

(iv) A position in which a member of the foreign service is serving that does not 

require advice and consent of the Senate.

Example 1: A career Department of Justice employee who is detailed to a policymaking position in the White House Office that is ordinarily filled by a noncareer 

employee is not a Presidential appointee to a full-time noncareer position.

Example 2: A Department of Energy employee appointed under § 213.3301 of this 

title to a Schedule C position is appointed by the agency and, thus, is not a 

Presidential appointee to a full-time noncareer position.

§ 2635.805 Service as an expert witness.

(a) Restriction. An employee shall not serve, other than on behalf of the United States, as an 

expert witness, with or without compensation, in any proceeding before a court or agency 

of the United States in which the United States is a party or has a direct and substantial 

interest, unless the employee’s participation is authorized by the agency under paragraph 

(c) of this section. Except as provided in paragraph (b) of this section, this restriction shall 

apply to a special Government employee only if he has participated as an employee or 

special Government employee in the particular proceeding or in the particular matter that is 

the subject of the proceeding.

(b) Additional restriction applicable to certain special Government employees. 

(1) In addition to the restriction described in paragraph (a) of this section, a special 

Government employee described in paragraph (b)(2) of this section shall not serve, 

other than on behalf of the United States, as an expert witness, with or without 

compensation, in any proceeding before a court or agency of the United States in 

which his employing agency is a party or has a direct and substantial interest, unless 

the employee’s participation is authorized by the agency under paragraph (c) of this 

section.

(2) The restriction in paragraph (b)(1) of this section shall apply to a special Government 

employee who:
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

79

(i) Is appointed by the President;

(ii) Serves on a commission established by statute; or

(iii) Has served or is expected to serve for more than 60 days in a period of 365 

consecutive days.

(c) Authorization to serve as an expert witness. Provided that the employee’s testimony will 

not violate any of the principles or standards set forth in this part, authorization to provide 

expert witness service otherwise prohibited by paragraphs (a) and (b) of this section may be 

given by the designated agency ethics official of the agency in which the employee serves 

when:

(1) After consultation with the agency representing the Government in the proceeding or, 

if the Government is not a party, with the Department of Justice and the agency with 

the most direct and substantial interest in the matter, the designated agency ethics 

official determines that the employee’s service as an expert witness is in the interest 

of the Government; or

(2) The designated agency ethics official determines that the subject matter of the 

testimony does not relate to the employee’s official duties within the meaning of § 

2635.807(a)(2)(i).

(d) Nothing in this section prohibits an employee from serving as a fact witness when 

subpoenaed by an appropriate authority.

§ 2635.806 Participation in professional associations. [Reserved]

§ 2635.807 Teaching, speaking and writing.

(a) Compensation for teaching, speaking or writing. Except as permitted by paragraph (a)(3) 

of this section, an employee, including a special Government employee, shall not receive 

compensation from any source other than the Government for teaching, speaking or writing 

that relates to the employee’s official duties.

(1) Relationship to other limitations on receipt of compensation. The compensation 

prohibition contained in this section is in addition to any other limitation on receipt of 

compensation set forth in this chapter, including:

(i) The requirement contained in § 2636.307 of this chapter that covered noncareer 

employees obtain advance authorization before engaging in teaching for 

compensation; and
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

80

(ii) The prohibitions and limitations in § 2635.804 and in § 2636.304 of this chapter 

on receipt of outside earned income applicable to certain Presidential appointees 

and to other covered noncareer employees.

(2) Definitions. For purposes of this paragraph:

(i) Teaching, speaking or writing relates to the employee’s official duties if:

(A) The activity is undertaken as part of the employee’s official duties;

(B) The circumstances indicate that the invitation to engage in the activity was 

extended to the employee primarily because of his official position rather 

than his expertise on the particular subject matter;

(C) The invitation to engage in the activity or the offer of compensation for 

the activity was extended to the employee, directly or indirectly, by a 

person who has interests that may be affected substantially by 

performance or nonperformance of the employee’s official duties;

(D) The information conveyed through the activity draws substantially on 

ideas or official data that are nonpublic information as defined in § 

2635.703(b); or

(E) Except as provided in paragraph (a)(2)(i)(E)(4) of this section, the subject 

of the activity deals in significant part with:

(1) Any matter to which the employee presently is assigned or to 

which the employee had been assigned during the previous oneyear period;

(2) Any ongoing or announced policy, program or operation of the 

agency; or

(3) In the case of a noncareer employee as defined in § 2636.303(a) of 

this chapter, the general subject matter area, industry, or economic 

sector primarily affected by the programs and operations of his 

agency.

(4) The restrictions in paragraphs (a)(2)(i)(E)(2) and (3) of this section 

do not apply to a special Government employee. The restriction in 

paragraph (a)(2)(i)(E)(1) of this section applies only during the 

current appointment of a special Government employee; except 

that if the special Government employee has not served or is not 

expected to serve for more than 60 days during the first year or any 
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

81

subsequent one year period of that appointment, the restriction 

applies only to particular matters involving specific parties in 

which the special Government employee has participated or is 

participating personally and substantially.

Note: Section 2635.807(a)(2)(i)(E) does not preclude an employee, other 

than a covered noncareer employee, from receiving compensation for 

teaching, speaking or writing on a subject within the employee’s discipline 

or inherent area of expertise based on his educational background or 

experience even though the teaching, speaking or writing deals generally 

with a subject within the agency’s areas of responsibility.

Example 1: The Director of the Division of Enforcement at the Commodity Futures 

Trading Commission has a keen interest in stamp collecting and has spent years 

developing his own collection as well as studying the field generally. He is asked by 

an international society of philatelists to give a series of four lectures on how to 

assess the value of American stamps. Because the subject does not relate to his 

official duties, the Director may accept compensation for the lecture series. He could 

not, however, accept a similar invitation from a commodities broker.

Example 2: A scientist at the National Institutes of Health, whose principal area of 

Government research is the molecular basis of the development of cancer, could not 

be compensated for writing a book which focuses specifically on the research she 

conducts in her position at NIH, and thus, relates to her official duties. However, the 

scientist could receive compensation for writing or editing a textbook on the 

treatment of all cancers, provided that the book does not focus on recent research at 

NIH, but rather conveys scientific knowledge gleaned from the scientific community 

as a whole. The book might include a chapter, among many other chapters, which 

discusses the molecular basis of cancer development. Additionally, the book could 

contain brief discussions of recent developments in cancer treatment, even though 

some of those developments are derived from NIH research, as long as it is available 

to the public.

Example 3: On his own time, a National Highway Traffic Safety Administration 

employee prepared a consumer’s guide to purchasing a safe automobile that focuses 

on automobile crash worthiness statistics gathered and made public by NHTSA. He 

may not receive royalties or any other form of compensation for the guide. The guide 

deals in significant part with the programs or operations of NHTSA and, therefore, 

relates to the employee’s official duties. On the other hand, the employee could 

receive royalties from the sale of a consumer’s guide to values in used automobiles 

even though it contains a brief, incidental discussion of automobile safety standards 

developed by NHTSA.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

82

Example 4: An employee of the Securities and Exchange Commission may not 

receive compensation for a book which focuses specifically on the regulation of the 

securities industry in the United States, since that subject concerns the regulatory 

programs or operations of the SEC. The employee may, however, write a book about 

the advantages of investing in various types of securities as long as the book contains 

only an incidental discussion of any program or operation of the SEC.

Example 5: An employee of the Department of Commerce who works in the 

Department’s employee relations office is an acknowledged expert in the field of 

Federal employee labor relations, and participates in Department negotiations with 

employee unions. The employee may receive compensation from a private training 

institute for a series of lectures which describe the decisions of the Federal Labor 

Relations Authority concerning unfair labor practices, provided that her lectures do 

not contain any significant discussion of labor relations cases handled at the 

Department of Commerce, or the Department’s labor relations policies. Federal 

Labor Relations Authority decisions concerning Federal employee unfair labor 

practices are not a specific program or operation of the Department of Commerce 

and thus do not relate to the employee’s official duties. However, an employee of the 

FLRA could not give the same presentations for compensation.

Example 6: A program analyst employed at the Environmental Protection Agency 

may receive royalties and other compensation for a book about the history of the 

environmental movement in the United States even though it contains brief references 

to the creation and responsibilities of the EPA. A covered noncareer employee of the 

EPA, however, could not receive compensation for writing the same book because it 

deals with the general subject matter area affected by EPA programs and operations. 

Neither employee could receive compensation for writing a book that focuses on 

specific EPA regulations or otherwise on its programs and operations.

Example 7: An attorney in private practice has been given a one year appointment 

as a special Government employee to serve on an advisory committee convened for 

the purpose of surveying and recommending modification of procurement regulations 

that deter small businesses from competing for Government contracts. Because his 

service under that appointment is not expected to exceed 60 days, the attorney may 

accept compensation for an article about the anticompetitive effects of certain 

regulatory certification requirements even though those regulations are being 

reviewed by the advisory committee. The regulations which are the focus of the 

advisory committee deliberations are not a particular matter involving specific 

parties. Because the information is nonpublic, he could not, however, accept 

compensation for an article which recounts advisory committee deliberations that 

took place in a meeting closed to the public in order to discuss proprietary 

information provided by a small business.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

83

Example 8: A biologist who is an expert in marine life is employed for more than 60 

days in a year as a special Government employee by the National Science Foundation 

to assist in developing a program of grants by the Foundation for the study of coral 

reefs. The biologist may continue to receive compensation for speaking, teaching and 

writing about marine life generally and coral reefs specifically. However, during the 

term of her appointment as a special Government employee, she may not receive 

compensation for an article about the NSF program she is participating in 

developing. Only the latter would concern a matter to which the special Government 

employee is assigned.

Example 9: An expert on international banking transactions has been given a oneyear appointment as a special Government employee to assist in analyzing evidence 

in the Government’s fraud prosecution of owners of a failed savings and loan 

association. It is anticipated that she will serve fewer than 60 days under that 

appointment. Nevertheless, during her appointment, the expert may not accept 

compensation for an article about the fraud prosecution, even though the article does 

not reveal nonpublic information. The prosecution is a particular matter that involves 

specific parties.

(ii) Agency has the meaning set forth in § 2635.102(a), except that any component 

of a department designated as a separate agency under § 2635.203(a) shall be 

considered a separate agency.

(iii) Compensation includes any form of consideration, remuneration or income, 

including royalties, given for or in connection with the employee’s teaching, 

speaking or writing activities. Unless accepted under specific statutory 

authority, such as 31 U.S.C. 1353, 5 U.S.C. 4111 or 7342, or an agency gift 

acceptance statute, it includes transportation, lodgings and meals, whether 

provided in kind, by purchase of a ticket, by payment in advance or by 

reimbursement after the expense has been incurred. It does not include:

(A) Items offered by any source that could be accepted from a prohibited 

source under subpart B of this part;

(B) Meals or other incidents of attendance such as waiver of attendance fees or 

course materials furnished as part of the event at which the teaching or 

speaking takes place;

(C) Copies of books or of publications containing articles, reprints of articles, 

tapes of speeches, and similar items that provide a record of the teaching, 

speaking or writing activity; or

(D) In the case of an employee other than a covered noncareer employee as 

defined in 5 CFR 2636.303(a), travel expenses, consisting of 
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

84

transportation, lodgings or meals, incurred in connection with the 

teaching, speaking or writing activity.

Note to paragraph (a)(2)(iii): Independent of § 2635.807(a), other authorities, 

such as 18 U.S.C. 209, in some circumstances may limit or entirely preclude an 

employee’s acceptance of travel expenses. In addition, employees who file 

financial disclosure reports should be aware that, subject to applicable 

thresholds and exclusions, travel and travel reimbursements accepted from 

sources other than the United States Government must be reported on their 

financial disclosure reports.

Example 1 to paragraph (a)(2)(iii): A GS–15 employee of the Forest Service 

has developed and marketed, in her private capacity, a speed reading technique 

for which popular demand is growing. She is invited to speak about the 

technique by a representative of an organization that will be substantially 

affected by a regulation on land management which the employee is in the 

process of drafting for the Forest Service. The representative offers to pay the 

employee a $200 speaker’s fee and to reimburse all her travel expenses. She 

may accept the travel reimbursements, but not the speaker’s fee. The speaking 

activity is related to her official duties under § 2635.807(a)(2)(i)(C) and the fee 

is prohibited compensation for such speech; travel expenses incurred in 

connection with the speaking engagement, on the other hand, are not prohibited 

compensation for a GS–15 employee.

Example 2 to paragraph (a)(2)(iii): Solely because of her recent appointment to 

a Cabinet-level position, a Government official is invited by the Chief Executive 

Officer of a major international corporation to attend firm meetings to be held 

in Aspen for the purpose of addressing senior corporate managers on the 

importance of recreational activities to a balanced lifestyle. The firm offers to 

reimburse the official’s travel expenses. The official may not accept the offer. 

The speaking activity is related to official duties under § 2635.807(a)(2)(i)(B) 

and, because she is a covered noncareer employee as defined in § 2636.303(a) 

of this chapter, the travel expenses are prohibited compensation as to her.

Example 3 to paragraph (a)(2)(iii): A GS–14 attorney at the Federal Trade 

Commission (FTC) who played a lead role in a recently concluded merger case 

is invited to speak about the case, in his private capacity, at a conference in 

New York. The attorney has no public speaking responsibilities on behalf of the 

FTC apart from the judicial and administrative proceedings to which he is 

assigned. The sponsors of the conference offer to reimburse the attorney for 

expenses incurred in connection with his travel to New York. They also offer 

him, as compensation for his time and effort, a free trip to San Francisco. The 

attorney may accept the travel expenses to New York, but not the expenses to 

San Francisco. The lecture relates to his official duties under paragraphs 
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

85

(a)(2)(i)(E)(1) and (a)(2)(i)(E)(2) of § 2635.807, but because he is not a 

covered noncareer employee as defined in § 2636.303(a) of this chapter, the 

expenses associated with his travel to New York are not a prohibited form of 

compensation as to him. The travel expenses to San Francisco, on the other 

hand, not incurred in connection with the speaking activity, are a prohibited 

form of compensation. If the attorney were a covered noncareer employee he 

would be barred from accepting the travel expenses to New York as well as the 

travel expenses to San Francisco.

Example 4 to paragraph (a)(2)(iii): An advocacy group dedicated to improving 

treatments for severe pain asks the National Institutes of Health (NIH) to 

provide a conference speaker who can discuss recent advances in the agency’s 

research on pain. The group also offers to pay the employee’s travel expenses to 

attend the conference. After performing the required conflict of interest 

analysis, NIH authorizes acceptance of the travel expenses under 31 U.S.C. 

1353 and the implementing General Services Administration regulation, as 

codified under 41 CFR chapter 304, and authorizes an employee to undertake 

the travel. At the conference the advocacy group, as agreed, pays the 

employee’s hotel bill and provides several of his meals. Subsequently the group 

reimburses the agency for the cost of the employee’s airfare and some 

additional meals. All of the payments by the advocacy group are permissible. 

Since the employee is speaking officially and the expense payments are accepted 

under 31 U.S.C. 1353, they are not prohibited compensation under §

2635.807(a)(2)(iii). The same result would obtain with respect to expense 

payments made by non-Government sources properly authorized under an 

agency gift acceptance statute, the Government Employees Training Act, 

5 U.S.C. 4111, or the foreign gifts law, 5 U.S.C. 7342.

(iv) Receive means that there is actual or constructive receipt of the compensation 

by the employee so that the employee has the right to exercise dominion and 

control over the compensation and to direct its subsequent use. Compensation 

received by an employee includes compensation which is:

(A) Paid to another person, including a charitable organization, on the basis of 

designation, recommendation or other specification by the employee; or

(B) Paid with the employee’s knowledge and acquiescence to his parent, 

sibling, spouse, child, or dependent relative.

(v) Particular matter involving specific parties has the meaning set forth in § 

2637.102(a)(7) of this chapter.

(vi) Personal and substantial participation has the meaning set forth in § 

2635.402(b)(4).
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

86

(3) Exception for teaching certain courses. Notwithstanding that the activity would relate 

to his official duties under paragraphs (a)(2)(i) (B) or (E) of this section, an employee 

may accept compensation for teaching a course requiring multiple presentations by 

the employee if the course is offered as part of:

(i) The regularly established curriculum of:

(A) An institution of higher education as defined at 20 U.S.C. 1141(a);

(B) An elementary school as defined at 20 U.S.C. 2891(8); or

(C) A secondary school as defined at 20 U.S.C. 2891(21); or

(ii) A program of education or training sponsored and funded by the Federal 

Government or by a State or local government which is not offered by an entity 

described in paragraph (a)(3)(i) of this section.

Example 1: An employee of the Cost Accounting Standards Board who teaches an 

advanced accounting course as part of the regular business school curriculum of an 

accredited university may receive compensation for teaching the course even though 

a substantial portion of the course deals with cost accounting principles applicable to 

contracts with the Government.

Example 2: An attorney employed by the Equal Employment Opportunity 

Commission may accept compensation for teaching a course at a state college on the 

subject of Federal employment discrimination law. The attorney could not accept 

compensation for teaching the same seminar as part of a continuing education 

program sponsored by her bar association because the subject of the course is 

focused on the operations or programs of the EEOC and the sponsor of the course is 

not an accredited educational institution.

Example 3: An employee of the National Endowment for the Humanities is invited 

by a private university to teach a course that is a survey of Government policies in 

support of artists, poets and writers. As part of his official duties, the employee 

administers a grant that the university has received from the NEH. The employee may 

not accept compensation for teaching the course because the university has interests 

that may be substantially affected by the performance or nonperformance of the 

employee’s duties. Likewise, an employee may not receive compensation for any 

teaching that is undertaken as part of his official duties or that involves the use of 

nonpublic information.

(b) Reference to official position. An employee who is engaged in teaching, speaking or 

writing as outside employment or as an outside activity shall not use or permit the use of 

his official title or position to identify him in connection with his teaching, speaking or 
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

87

writing activity or to promote any book, seminar, course, program or similar undertaking, 

except that:

(1) An employee may include or permit the inclusion of his title or position as one of 

several biographical details when such information is given to identify him in 

connection with his teaching, speaking or writing, provided that his title or position is 

given no more prominence than other significant biographical details;

(2) An employee may use, or permit the use of, his title or position in connection with an 

article published in a scientific or professional journal, provided that the title or 

position is accompanied by a reasonably prominent disclaimer satisfactory to the 

agency stating that the views expressed in the article do not necessarily represent the 

views of the agency or the United States; and

(3) An employee who is ordinarily addressed using a general term of address, such as 

“The Honorable,” or a rank, such as a military or ambassadorial rank, may use or 

permit the use of that term of address or rank in connection with his teaching, 

speaking or writing.

Note: Some agencies may have policies requiring advance agency review, clearance, or 

approval of certain speeches, books, articles or similar products to determine whether the 

product contains an appropriate disclaimer, discloses nonpublic information, or otherwise 

complies with this section.

Example 1: A meteorologist employed with the National Oceanic and Atmospheric 

Administration is asked by a local university to teach a graduate course on hurricanes. The 

university may include the meteorologist’s Government title and position together with 

other information about his education and previous employment in course materials setting 

forth biographical data on all teachers involved in the graduate program. However, his 

title or position may not be used to promote the course, for example, by featuring the 

meteorologist’s Government title, Senior Meteorologist, NOAA, in bold type under his 

name. In contrast, his title may be used in this manner when the meteorologist is authorized 

by NOAA to speak in his official capacity.

Example 2: A doctor just employed by the Centers for Disease Control has written a 

paper based on his earlier independent research into cell structures. Incident to the 

paper’s publication in the Journal of the American Medical Association, the doctor may be 

given credit for the paper, as Dr. M. Wellbeing, Associate Director, Centers for Disease 

Control, provided that the article also contains a disclaimer, concurred in by the CDC, 

indicating that the paper is the result of the doctor’s independent research and does not 

represent the findings of the CDC.

Example 3: An employee of the Federal Deposit Insurance Corporation has been asked to 

give a speech in his private capacity, without compensation, to the annual meeting of a 
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

88

committee of the American Bankers Association on the need for banking reform. The 

employee may be described in his introduction at the meeting as an employee of the 

Federal Deposit Insurance Corporation provided that other pertinent biographical details 

are mentioned as well.

§ 2635.808 Fundraising activities.

An employee may engage in fundraising only in accordance with the restrictions in part 950 of 

this title on the conduct of charitable fundraising in the Federal workplace and in accordance 

with paragraphs (b) and (c) of this section.

(a) Definitions. For purposes of this section: 

(1) Fundraising means the raising of funds for a nonprofit organization, other than a 

political organization as defined in 26 U.S.C. 527(e), through:

(i) Solicitation of funds or sale of items; or

(ii) Participation in the conduct of an event by an employee where any portion of

the cost of attendance or participation may be taken as a charitable tax 

deduction by a person incurring that cost.

(2) Participation in the conduct of an event means active and visible participation in the 

promotion, production, or presentation of the event and includes serving as honorary 

chairperson, sitting at a head table during the event, and standing in a reception line. 

The term does not include mere attendance at an event provided that, to the 

employee’s knowledge, his attendance is not used by the nonprofit organization to 

promote the event. While the term generally includes any public speaking during the 

event, it does not include the delivery of an official speech as defined in paragraph 

(a)(3) of this section or any seating or other participation appropriate to the delivery 

of such a speech. Waiver of a fee for attendance at an event by a participant in the 

conduct of that event does not constitute a gift for purposes of subpart B of this part.

Note: This section does not prohibit fundraising for a political party, candidate for 

partisan political office, or partisan political group. However, there are statutory 

restrictions that apply to political fundraising. For example, under the Hatch Act 

Reform Amendments of 1993, at 5 U.S.C. 7323(a), employees may not knowingly 

solicit, accept, or receive a political contribution from any person, except under 

limited circumstances. In addition, employees are prohibited by 18 U.S.C. 607 from 

soliciting or receiving political contributions in Federal offices, and, except as 

permitted by the Hatch Act Reform Amendments, are prohibited by 18 U.S.C. 602 

from knowingly soliciting political contributions from other employees.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

89

Example 1: The Secretary of Transportation has been asked to serve as master of 

ceremonies for an All-Star Gala. Tickets to the event cost $150 and are tax deductible 

as a charitable donation, with proceeds to be donated to a local hospital. By serving 

as master of ceremonies, the Secretary would be participating in fundraising.

(3) Official speech means a speech given by an employee in his official capacity on a 

subject matter that relates to his official duties, provided that the employee’s agency 

has determined that the event at which the speech is to be given provides an 

appropriate forum for the dissemination of the information to be presented and 

provided that the employee does not request donations or other support for the 

nonprofit organization. Subject matter relates to an employee’s official duties if it 

focuses specifically on the employee’s official duties, on the responsibilities, 

programs, or operations of the employee’s agency as described in § 

2635.807(a)(2)(i)(E), or on matters of Administration policy on which the employee 

has been authorized to speak.

Example 1: The Secretary of Labor is invited to speak at a banquet honoring a 

distinguished labor leader, the proceeds of which will benefit a nonprofit 

organization that assists homeless families. She devotes a major portion of her speech 

to the Administration’s Points of Light initiative, an effort to encourage citizens to 

volunteer their time to help solve serious social problems. Because she is authorized 

to speak on Administration policy, her remarks at the banquet are an official speech. 

However, the Secretary would be engaged in fundraising if she were to conclude her 

official speech with a request for donations to the nonprofit organization.

Example 2: A charitable organization is sponsoring a two-day tennis tournament at 

a country club in the Washington, DC area to raise funds for recreational programs 

for learning disabled children. The organization has invited the Secretary of 

Education to give a speech on federally funded special education programs at the 

awards dinner to be held at the conclusion of the tournament and a determination has 

been made that the dinner is an appropriate forum for the particular speech. The 

Secretary may speak at the dinner and, under § 2635.204(g)(1), he may partake of the 

meal provided to him at the dinner.

(4) Personally solicit means to request or otherwise encourage donations or other support 

either through person-to-person contact or through the use of one’s name or identity 

in correspondence or by permitting its use by others. It does not include the 

solicitation of funds through the media or through either oral remarks, or the 

contemporaneous dispatch of like items of mass-produced correspondence, if such 

remarks or correspondence are addressed to a group consisting of many persons, 

unless it is known to the employee that the solicitation is targeted at subordinates or at 

persons who are prohibited sources within the meaning of § 2635.203(d). It does not 

include behind-the-scenes assistance in the solicitation of funds, such as drafting 

correspondence, stuffing envelopes, or accounting for contributions.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

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Example 1: An employee of the Department of Energy who signs a letter soliciting 

funds for a local private school does not “personally solicit” funds when 500 copies 

of the letter, which makes no mention of his DOE position and title, are mailed to 

members of the local community, even though some individuals who are employed by 

Department of Energy contractors may receive the letter.

(b) Fundraising in an official capacity. An employee may participate in fundraising in an 

official capacity if, in accordance with a statute, Executive order, regulation or otherwise as 

determined by the agency, he is authorized to engage in the fundraising activity as part of 

his official duties. When authorized to participate in an official capacity, an employee may 

use his official title, position and authority.

Example 1: Because participation in his official capacity is authorized under part 950 of 

this title, the Secretary of the Army may sign a memorandum to all Army personnel 

encouraging them to donate to the Combined Federal Campaign.

(c) Fundraising in a personal capacity. An employee may engage in fundraising in his 

personal capacity provided that he does not:

(1) Personally solicit funds or other support from a subordinate or from any person:

(i) Known to the employee, if the employee is other than a special Government 

employee, to be a prohibited source within the meaning of § 2635.203(d); or

(ii) Known to the employee, if the employee is a special Government employee, to 

be a prohibited source within the meaning of § 2635.203(d)(4) that is a person 

whose interests may be substantially affected by performance or 

nonperformance of his official duties;

(2) Use or permit the use of his official title, position or any authority associated with his 

public office to further the fundraising effort, except that an employee who is 

ordinarily addressed using a general term of address, such “The Honorable,” or a 

rank, such as a military or ambassadorial rank, may use or permit the use of that term 

of address or rank for such purposes; or

(3) Engage in any action that would otherwise violate this part.

Example 1: A nonprofit organization is sponsoring a golf tournament to raise funds for 

underprivileged children. The Secretary of the Navy may not enter the tournament with the 

understanding that the organization intends to attract participants by offering other 

entrants the opportunity, in exchange for a donation in the form of an entry fee, to spend 

the day playing 18 holes of golf in a foursome with the Secretary of the Navy.
Subpart H—Outside Activities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

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Example 2: An employee of the Merit Systems Protection Board may not use the agency’s 

photocopier to reproduce fundraising literature for her son’s private school. Such use of 

the photocopier would violate the standards at § 2635.704 regarding use of Government 

property.

Example 3: An Assistant Attorney General may not sign a letter soliciting funds for a 

homeless shelter as “John Doe, Assistant Attorney General.” He also may not sign a letter 

with just his signature, “John Doe,” soliciting funds from a prohibited source, unless the 

letter is one of many identical, mass-produced letters addressed to a large group where the 

solicitation is not known to him to be targeted at persons who are either prohibited sources 

or subordinates.

§ 2635.809 Just financial obligations.

Employees shall satisfy in good faith their obligations as citizens, including all just financial 

obligations, especially those such as Federal, State, or local taxes that are imposed by law. For 

purposes of this section, a just financial obligation includes any financial obligation 

acknowledged by the employee or reduced to judgment by a court. In good faith means an honest 

intention to fulfill any just financial obligation in a timely manner. In the event of a dispute 

between an employee and an alleged creditor, this section does not require an agency to 

determine the validity or amount of the disputed debt or to collect a debt on the alleged creditor’s 

behalf.
Subpart I—Related Statutory Authorities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

92

SUBPART I—RELATED STATUTORY AUTHORITIES

§ 2635.901 General.

In addition to the standards of ethical conduct set forth in subparts A through H of this part, there 

are a number of statutes that establish standards to which an employee’s conduct must conform. 

The list set forth in § 2635.902 references some of the more significant of those statutes. It is not 

comprehensive and includes only references to statutes of general applicability. While it includes 

references to several of the basic conflict of interest statutes whose standards are explained in 

more detail throughout this part, it does not include references to statutes of more limited 

applicability, such as statutes that apply only to officers and employees of the Department of 

Defense.

§ 2635.902 Related statutes.

(a) The prohibition against solicitation or receipt of bribes (18 U.S.C. 201(b)).

(b) The prohibition against solicitation or receipt of illegal gratuities (18 U.S.C. 201(c)).

(c) The prohibition against seeking or receiving compensation for certain representational 

services before the Government (18 U.S.C. 203).

(d) The prohibition against assisting in the prosecution of claims against the Government or 

acting as agent or attorney before the Government (18 U.S.C. 205).

(e) The post-employment restrictions applicable to former employees (18 U.S.C. 207, with 

implementing regulations at parts 2637 and 2641 of this chapter).

(f) The prohibition on certain former agency officials’ acceptance of compensation from a 

contractor (41 U.S.C. 423(d)).

(g) The prohibition against participating in matters affecting an employee’s own financial 

interests or the financial interests of other specified persons or organizations (18 U.S.C. 

208).

(h) The actions required of certain agency officials when they contact, or are contacted by, 

offerors or bidders regarding non-Federal employment (41 U.S.C. 423(c)).

(i) The prohibition against receiving salary or any contribution to or supplementation of salary 

as compensation for Government service from a source other than the United States 

(18 U.S.C. 209).

(j) The prohibition against gifts to superiors (5 U.S.C. 7351).
Subpart I—Related Statutory Authorities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

93

(k) The prohibition against solicitation or receipt of gifts from specified prohibited sources 

(5 U.S.C. 7353).

(l) The prohibition against fraudulent access and related activity in connection with computers 

(18 U.S.C. 1030).

(m) The provisions governing receipt and disposition of foreign gifts and decorations (5 U.S.C. 

7342).

(n) [Reserved]

(o) The prohibitions against certain political activities (5 U.S.C. 7321 through 7326 and 

18 U.S.C. 602, 603, 606 and 607).

(p) The prohibitions against disloyalty and striking (5 U.S.C. 7311 and 18 U.S.C. 1918).

(q) The general prohibition (18 U.S.C. 219) against acting as the agent of a foreign principal 

required to register under the Foreign Agents Registration Act (22 U.S.C. 611 through 

621).

(r) The prohibition against employment of a person convicted of participating in or promoting 

a riot or civil disorder (5 U.S.C. 7313).

(s) The prohibition against employment of an individual who habitually uses intoxicating 

beverages to excess (5 U.S.C. 7352).

(t) The prohibition against misuse of a Government vehicle (31 U.S.C. 1344).

(u) The prohibition against misuse of the franking privilege (18 U.S.C. 1719).

(v) The prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(w) The prohibition against concealing, mutilating or destroying a public record (18 U.S.C. 

2071).

(x) The prohibition against counterfeiting or forging transportation requests (18 U.S.C. 508).

(y) The restrictions on disclosure of certain sensitive Government information under the 

Freedom of Information Act and the Privacy Act (5 U.S.C. 552 and 552a).

(z) The prohibitions against disclosure of classified information (18 U.S.C. 798 and 50 U.S.C. 

783(a)).
Subpart I—Related Statutory Authorities

Codified in 5 C.F.R. Part 2635

As amended at 81 FR 81641 (effective January 1, 2017)

94

(aa) The prohibition against disclosure of proprietary information and certain other information 

of a confidential nature (18 U.S.C. 1905).

(bb) The prohibitions on disclosing and obtaining certain procurement information (41 U.S.C. 

423(a) and (b)).

(cc) The prohibition against unauthorized use of documents relating to claims from or by the 

Government (18 U.S.C. 285).

(dd) The prohibition against certain personnel practices (5 U.S.C. 2302).

(ee) The prohibition against interference with civil service examinations (18 U.S.C. 1917).

(ff) The restrictions on use of public funds for lobbying (18 U.S.C. 1913).

(gg) The prohibition against participation in the appointment or promotion of relatives (5 U.S.C. 

3110).

(hh) The prohibition against solicitation or acceptance of anything of value to obtain public 

office for another (18 U.S.C. 211).

(ii) The prohibition against conspiracy to commit an offense against or to defraud the United 

States (18 U.S.C. 371).

(jj) The prohibition against embezzlement or conversion of Government money or property 

(18 U.S.C. 641).

(kk) The prohibition against failing to account for public money (18 U.S.C. 643).

(ll) The prohibition against embezzlement of the money or property of another person that is in 

the possession of an employee by reason of his employment (18 U.S.C. 654).