When it comes to work-related gifts, the best advice for a government employee is generally to not accept them.
Consider the following:
• An employee used their government credit card to purchase office supplies. The retailer thanked the employee by giving the gift of a free briefcase. After a Department of Defense Inspector General’s investigation, the briefcase was returned and the employee disciplined.
• An employee was disciplined for soliciting donations for a school event from co-workers while on duty and at work.
• An Army general visited New York City with his wife. During his stay, the general accepted two complimentary meals from the president of a defense contractor with multiple DoD contracts. The contractor also gave the general two free tickets to see a Broadway show. Upon investigation, the IG found the general’s actions to be a violation of the ethics rules. For this and other violations, the general was fined and forced to retire at a lower rank.
All are violations of the gift regulations found in the Standards of Ethical Conduct for Employees of the Executive Branch (5 C.F.R. Part 2635).
“There are significant restrictions on the acceptance of gifts by military and civilian employees of Executive Branch agencies,” said Larry Wilde, an attorney for the Army Materiel Command who specializes in ethics. “The underlying reason for gift restrictions is the fundamental obligation of federal employees to place loyalty to the constitution, laws and ethical principles above private gain in order to earn and retain the public’s trust.”
The Standards of Ethical Conduct regulations prohibit federal employees 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 regulatory definition of a gift or falls within an express exception.
A “prohibited source” is a person who seeks official action from the employee’s agency, does or seeks to do business with their agency, conducts activities regulated by their agency, or has interests that may be substantially affected by the performance or non-performance of the employee’s official duties.
“Employees of defense contractors, for example, are considered ‘prohibited sources’ as pertains to DoD employees,” Wilde said. “The rules apply regardless of whether the DoD employee who is receiving a gift has any official duties involving the contractor or whether the employee is on or off duty.”
But, applying such broad gift restrictions would sometimes lead to unintended results if no exceptions are permitted, Wilde said.
“Under these regulations, for example, if your spouse works for a defense contractor and you are a DoD employee, your spouse would be considered a prohibited source and, absent an exception, you would be prohibited from accepting any kind of gift from your spouse,” Wilde said. “Fortunately, the ethics rules provide a list of exceptions to the basic prohibition. One of these exceptions is for gifts that are given clearly based on personal relationships. The history and nature of the relationship -- such as a marriage or a father-daughter connection -- and whether the person or the employer is paying for the gift are relevant considerations in determining whether this exception is met.”
There are other gift exceptions in the Standards of Ethical Conduct rules. A common exception is that employees may accept a gift from a prohibited source, or one given because of the employee’s official position, if the fair market value of the gift does not exceed $20 per occasion, or $50 in multiple gifts from the same source in a calendar year.
“Before accepting any gifts, however, the employees should also consider the appearance that accepting these gifts might create,” Wilde said. “Just because a gift exception could apply does not mean an employee should accept a gift if the circumstances could cause the public to reasonably question the employee’s integrity or impartiality.”
Other common gift exceptions apply for certain awards and honorary degrees; gifts based on the outside business or employment relationship of the employee’s spouse and meals and refreshments in foreign areas under certain circumstances.
“DoD employees can also acceptance free attendance to gatherings, such as dinners or galas, that are attended by a large and diverse group of people, as long as there is a written determination made by the employee’s ‘Agency Designee,’ generally the supervisor that the employee’s attendance serves the interests of the agency and outweighs the concern that the employee may be, or appear to be, improperly influenced in the performance of official duties,” Wilde said.
There are also some common items that are simply excluded from federal gift restrictions.
“Probably the most common of these exclusions are commercial discounts and benefits available to the public or to all federal employees or members of the military,” Wilde said. “This is why employees may accept military discounts or special hotel rates offered to all government employees when the offer is not based on rank. Plaques, certificates and trophies of little intrinsic value that are intended primarily for presentation are also not subject to the gift restrictions.”
The federal gift regulations prohibit employees from ever soliciting a gift.
For example, service contractors who are working with federal employees may not be solicited to contribute to office parties or workplace fundraisers, and may never be permitted to contribute to group gifts for federal employee.
Employees should report gifts from outside sources to their supervisor or servicing ethics counselor. Improper gifts may be returned or the donor may be reimbursed fair market value. Tangible items valued up to $100 may be destroyed or, if the item is perishable, the employee’s supervisor may approve that it be shared in the office, given to charity or destroyed.
There are separate statutes and regulations concerning gifts from foreign governments, the acceptance of certain travel benefits and gifts between federal employees.
“The gift rules can be complicated and counter-intuitive at times. Naturally, the best way to avoid accepting an improper gift is to not accept it in the first place. Whether or not a gift exception applies, it is never okay to accept a gift in return for being influenced in the performance of duty or to give the appearance of using your public office for private gain,” Wilde said.