Ethics Office-Guidance on Outside Employment

Updated 08/22/2006

Approval of Outside Employment

The USDA Supplemental Ethics Regulation at 5 CFR 8301 reinstated the requirement for prior approval of outside employment for many but not all employees.

• Employees Affected
• Covered Outside Employment
• Content of Requests
• How to Handle Requests
• Answer to Frequently Asked Questions
• How to Get More Information

Employees Affected

All Financial Disclosure Report filers, both Pubic (SF-278 Report Filers) and Confidential (SF-450 Report Filers), except Special Government employees. This regulation does not apply to employees who are not required to file a financial disclosure report.

Covered Outside Employment Requiring Prior Approval

The requirement for prior approval of outside employment applies to outside employment meeting the definition provided below, that began on or materially changed after March 24, 2000. [March 24, 2002, is the date the interim USDA Supplemental Ethics Regulations (now final) were published.]

Definition of outside employment: For purposes of this section, "employment" means any form of non-Federal employment or business relationship or activity involving the provision of personal services by the employee for direct, indirect, or deferred compensation other than reimbursement of actual and necessary expenses.

It also includes, irrespective of compensation, the following outside activities:

1. Providing personal services as a consultant or professional, including service as an expert witness or as an attorney; and
2. Providing personal services to a for-profit entity as an officer, director, employee, agent, attorney, consultant, contractor, general partner, or trustee, which involves decision making or policymaking for the non-Federal entity, or the provision of advice or counsel."  [Emphasis added.  (5 CFR § 8301.102(b)]

Content of Requests

The employee’s request must contain:

1. Employee’s name, title, organization (i.e., Region/State, NHQ/division, NBMC/center or institute), grade and salary.
2. Description of the proposed employment including specific duties.
3. Description of any NRCS duties that relate to the proposed employment.
4. Perspective employer’s name, address, and the location where work will be performed.
5. An answer to the question:  Does the outside employment in any way related to a Technical Service Provider?  Yes or No.  If yes, explain.
6. Estimated total time that will be devoted to the outside employment.  If expected to continue indefinitely, the number of hours per year.  Otherwise, list the beginning and ending dates.
7. Whether work can be preformed entirely outside of regular duty hours.  If not, estimate the number of hours of absence needed.
8. Method of compensation.
9. Whether compensation is derived from a USDA grant, contract, cooperative agreement or other source of USDA funding.  If so, explain.
10. For consultative or professional services, whether the client, employer, or other person on whose behalf the services are performed is receiving, or intends to seek, a USDA grant, contract, cooperative agreement, or other funding relationship.
11. For teaching, speaking, writing or editing, include the proposed text of any disclaimer required by 5 CFR 2635.807(b).

See USDA Supplemental Ethics Regulation at 5 CFR 8301.102(c) for more details.

How to Handle Requests

Supervisory staff should receive requests to approve outside employment from Financial Disclosure Report Filers before they engage in outside employment.  Upon a significant change in the nature of the outside employment or in the employee's official position, the employee shall submit a revised request for approval.  This does not affect Filers with outside employment that commenced prior to March 24, 2000, unless there is a significant change in the outside activity.

Procedures for handling requests are, as follows:

1. Requests for approval of outside employment are to be submitted through the immediate supervisor to the approving Ethics Official.  The approving Ethics Official will be the Deputy Chief for Management for headquarters employees, or the appropriate Regional Conservationist.  Requests must contain information required by USDA Supplemental Ethics Regulation at [5 8301.102(c).
2. The supervisor will evaluate the request and forward it with a written recommendation through the supervisory chain.  If required information from the employee has not been provided, the supervisor will so inform the employee and not forward the incomplete request.
3. Requests will be acted upon in accordance with the 5 8301.102(d), Standard for Approval.  The servicing ethics advisor should review the request to recommend appropriate action to the approving Ethics Official.
4. Requests for approval of outside employment and a copy of the notice of approval or disapproval will be filed on the left side of the Official Personnel Folder.

Answers to Frequently Asked Questions

Question 1 — Do all employees have to get prior approval of outside employment?

No, only employees who are required to file a financial disclosure report (OGE Form 278 or OGE Form 450) are required to get prior approval of outside employment.

Question 2 — Do I have to get prior approval from my supervisor(s) to be an officer in a professional organization?

No, not if the professional organization is a non-profit. Prior approval is not required if the outside activity is unpaid and for a non-profit entity. Consequently, prior approval is not required to be an officer, etc. for a non-profit professional organization.

See the definition of "employment" for this purpose provided above.

Question 3 — Can I help others on the side based on my personal knowledge without getting prior approval, as long as I do not get paid?

The answer varies depending on whether or not you are required to file a financial disclosure report.

If you a non-filer (i.e., not required to file a financial disclosure report), the answer is 'yes', you can assist others based on your personal knowledge without getting prior approval.

However, if you a filer (i.e., required to file a financial disclosure report), it depends. If the outside activity involves providing personal services as a consultant or professional (paid or unpaid) then an employee who is a filer must get prior approval before engaging in the outside activity.

How to Get More Information

Contact your servicing ethics advisor if you have questions.

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