When a government employee leaves their job to work for a contractor, they have to follow certain rules to avoid conflicts of interest. These rules are in place to ensure the integrity of government decisions and prevent any unfair advantage for contractors.
Avoiding Conflicts of Interest During Government Service
A federal employee cannot work on matters involving a company they're in discussions with for a potential job. Even something like talking to a company representative about future employment over lunch can lead to a conflict of interest. The government takes this seriously because it can appear as though the employee is using their position for personal gain.
If a government employee is looking for a job while still working for the government, they must remove themselves from any decisions that involve the company they're speaking with.
Post-Government Employment Restrictions
Even after leaving the government, there are rules about what former employees can and cannot do in their new jobs. These rules include:
- One-Year Cooling-Off Period: High-level former government employees must wait one year before they can work on anything related to their former agency.
- Lifetime Ban: Former government employees can never work on matters they were personally and substantially involved in during their government service.
- Personally: The employee is directly involved in a decision or overseeing someone else who is.
- Substantially: The employee's role is significant to the outcome of the decision.
- Particular Matter: This is any specific decision or action that impacts an individual or company.
- Procurement Integrity Act Restrictions: For certain large contracts, former employees cannot receive payment from the contractor for one year if they were involved in decisions related to that contract.
- Two-Year Representational Ban: A supervisory employee who did not personally work on a matter but had responsibility over it during their last year of government service may face a two-year restriction. If the employee was personally and substantially involved in the matter, a lifetime ban may apply instead.
These restrictions are meant to ensure that government decisions remain impartial and prevent any former employees from using inside knowledge to benefit their new employer.
Ethics Opinion Letters
Before starting a job with a contractor, a former government employee might need to request an ethics opinion letter from their old agency. This letter outlines any restrictions they face based on their previous work in government. It helps both the former employee and the contractor understand what they're allowed to do under the law.
Consequences for Violations
If a former government employee or contractor breaks these rules, the penalties can be severe. This can include cancellation of contracts, fines, or even criminal charges. In some cases, violations can lead to jail time for the individuals involved.
Conclusion
For government employees transitioning into jobs with contractors, following the rules is crucial to avoid conflicts of interest and penalties. Contractors also need to ensure they are in compliance by reviewing any potential hires' ethics restrictions before proceeding with employment negotiations.
* This article is provided for information purposes only. It does not constitute legal advice. It is not intended to form an attorney-client relationship. Any legal advice should be sought from an attorney. *