Reply to 

Attn. of:

Memorandum 

Subject: Information about Ethics Obligations of Date: August 2022 

Employees Entering Federal Service 

From: John Donaldson 

Deputy Chief Counsel 

NHTSA Ethics Official 

To: NHTSA Job Applicants 

Individuals considering employment with the National Highway Traffic Safety Administration 

(NHTSA) need to be aware of certain ethics requirements that apply to Federal employees. There is 

a one-year “cooling off” period during which a new Federal employee may not work on a matter that 

involves the employee’s previous employer (other than a previous Federal government employer). 

In addition, depending on the job, you may be required to sell certain assets you hold that would 

present a conflict of interest with the work you would perform if hired. The purpose of this 

memorandum is to make you aware of these requirements and their potential impacts on you, to 

avoid any surprises after you enter public service. 

Employees in the Executive branch are subject to the requirements of the Ethics in Government Act 

(Pub. Law. 95-521) and the Standards of Ethical Conduct set forth in the Office of Government 

Ethics regulations (5 CFR Part 2635). One regulatory restriction addresses the need for impartiality 

by providing that an employee generally may not work on a particular matter within one year of 

leaving a previous non-Federal employer if that employer is a party to the matter or represents a 

party to the matter. If you currently work for an entity that regularly or even occasionally does 

business with or has interests before this agency, this restriction is likely to affect you if hired, and 

your manager will need to ensure that you are not assigned work during the cooling off period that 

would violate this restriction. 

Employees in the Executive branch are also subject to certain criminal conflict-of-interest statutes. 

While some employees are required to file annual financial disclosure reports identifying their assets 

(and those of their spouse and dependents) for evaluation of conflicts of interest, the ethics 

requirements discussed below apply to all Federal employees, whether or not they must file a 

financial disclosure report. 

One conflict-of-interest statute, 18 U.S.C. § 208(a), prohibits an employee from participating 

personally and substantially in any particular matter in which the employee has a financial interest 

that is directly and predictably affected by the matter. This prohibition also applies to the financial 

interests of an employee’s spouse and dependents because those interests are attributed to the 

employee. The meaning and impact of this restriction are discussed below. 
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NHTSA oversees the safe manufacture of motor vehicles and equipment by setting safety standards 

and verifying compliance with those standards, investigating safety-related defects, and enforcing 

recalls and remedies of defective motor vehicles and equipment. The agency also sets fuel economy 

standards for cars and trucks (known as “CAFE” standards). Under its authority, NHTSA regulates 

or conducts business with many entities, and many entities seek to do business with the agency or 

have an interest in issues before the agency. Examples of entities include, but are not limited to, 

motor vehicle manufacturers, vehicle equipment manufacturers and suppliers, and companies 

involved in the newly emerging autonomous vehicle arena. NHTSA’s authority extends beyond 

motor vehicles to such areas as grants and research on human behavior, and it is possible for a 

conflict of interest to arise in those areas. However, it is in the area of motor vehicle practice that a 

conflict of interest is most likely to arise based upon the typical assets held by individuals. 

Under Federal ethics laws, a conflict of interest arises if an employee works on a matter involving or 

affecting the interests of a particular entity while the employee (or the employee’s spouse or minor 

child) owns assets (such as stocks) issued by that entity. To avoid such a conflict of interest, the 

employee must either divest of the asset or be recused from working on the matter or any other 

matter affecting that entity (unless the asset falls below limited exemption amounts). There are 

instances where it is not possible for the employee to be recused, such as when the employee’s work 

on the matter is essential or an integral part of assigned job responsibilities. In those instances, an 

employee must partially or fully divest of the asset. 

Depending on the responsibilities of the job for which you are applying, you may be required to sell 

assets that would constitute a conflict of interest with your job responsibilities upon acceptance of 

employment at NHTSA. (The responsibility not to hold assets that would create a conflict of interest 

is a continuing one that lasts throughout Federal employment.) If you have any questions about how 

the discussion in this memorandum might affect you, please inform the Human Resources specialist, 

who can put you in touch with a NHTSA ethics official for guidance. Note that such guidance is 

limited to discussing potential conflicts of interest and divestiture requirements based on the duties 

of the position for which you are applying and does not include providing personal financial advice. 

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