2
future employment). For example, an employee who has engaged in negotiations for a paid
speaking engagement that will occur after he or she terminates federal government employment
(i.e. future compensation) must file a notification statement with the agency’s DAEO within
three business days after commencement of such negotiations. Likewise, an employee who
enters into a contract to begin writing a book after he or she leaves government service must file
a written notification statement with his or her DAEO because the employee has entered into an
agreement for future compensation with a non-federal entity.
In contrast, negotiations or agreements to compensate an employee for personal services
that will be performed, at least in part, during government service will not trigger the notification
requirements under section 17, even if the actual payment is deferred until or continues after the
employee leaves government service.
2
Therefore, if a current government employee signs a
contract to write a book that he or she expects to begin writing while in government service, the
employee is deemed to receive compensation during government service. See OGE Informal
Advisory Opinion 08 x 3a at 11; OGE 08 x 3b at 9-10. As a result, the employee is not required
to file a notification under section 17 because the agreement is not entirely for future, post-
government compensation. However, it is very important to note that this employee will still be
subject to a number of restrictions on his or her ability to engage in and receive compensation for
personal services performed during government service.
3
Compensation for the Provision of Personal Services
For purposes of section 17, OGE is applying the definition of compensation found in
5 C.F.R. § 2635.807(a)(2)(iii), which includes any form of consideration, remuneration, or
income, as well as royalties.
4
Negotiations for, or agreements of, future compensation in the
form of transportation, lodgings, and meals will also trigger the notification requirement under
2
See 5 C.F.R. § 2636.303(c) (stating that compensation is deemed to be “received while an individual is an
employee if it is for conduct by him that occurs while an employee, even though actual payment may be deferred
until after Federal employment is terminated”). OGE also interprets this definition of “receive” to apply equally to
5 C.F.R. § 2635.807. See OGE Informal Advisory Opinion 08 x 3a at 11; OGE Informal Advisory Opinion
08 x 3b at 10.
3
For example, the Standards of Ethical Conduct for Employees of the Executive Branch (Standards of
Conduct) limit the receipt of compensation by an employee for teaching, speaking, or writing that relates to the
employee’s official duties. See 5 C.F.R. § 2635.807. Agency regulations supplementing the Standards of Conduct
may also limit or prohibit an employee’s outside activities. In addition, a covered noncareer employee, as defined in
5 C.F.R. § 2636.303(a), is subject to a ban on receiving, in a calendar year, outside earned income that exceeds 15%
of the annual rate of basic pay for level II of the Executive Schedule. See 5 U.S.C. app. § 105(a)(1). A Presidential
appointee to a full-time, noncareer position (PA), as defined at 5 C.F.R. § 2635.804(c), is also prohibited from
receiving any earned income for activities performed during government service. See Executive Order 12674, as
modified by Executive Order 12731 and implemented by 5 C.F.R. § 2635.804(a). An employee should consult with
an agency ethics official regarding these and other prohibitions and limitations on the employee’s ability to engage
in and receive compensation for an outside activity performed during government service.
4
Royalties are not treated the same under all ethics rules. See 5 C.F.R. § 2636.303(b)(5) and
5 C.F.R. § 2635.804(c)(1) (excluding from the definition of compensation “copyright royalties, fees, and their
functional equivalent . . .”). OGE has determined that applying the definition of compensation found in
5 C.F.R. § 2635.807(a)(2)(iii) (including royalties in the definition of compensation) for purposes of the notification
requirement under section 17 is appropriate to ensure that an employee avoids the appearance of a conflict of
interest when the employee is negotiating for, or has an agreement of, future compensation for the provision of
personal services.
