Ask the Expert: Gift Law

Here is your chance to “Ask the Experts” at State and Federal Communications, Inc. Send your questions to experts@stateandfed.com. (Of course, we have always been available to answer questions from clients that are specific to your needs, and we encourage you to continue to call or email us with questions about your particular company or organization. As always, we will confidentially and directly provide answers or information you need.) Our replies are not legal advice, but rather our analysis of laws, rules, and regulations.

Q.   Our company is a federal registrant, and we’ve been working with an executive branch employee who is currently on paid administrative leave after accepting a “deferred resignation” offer from the Trump administration. She is now focused on starting a new consulting business and has no involvement with her former office or any decision-making responsibilities. We would like to offer her a complimentary ticket valued at $500 to a conference covering topics relevant to her new work. Since she is no longer active in her government role, can we provide her the ticket without violating federal gift rules?

A. Not necessarily. While the individual is no longer actively engaged with her former office, employees under a “deferred resignation” arrangement are still considered federal employees and remain subject to federal ethics rules—including those governing gifts—as well as conflict of interest statutes, among others. Several agencies, guided by the Office of Government Ethics, have addressed similar situations and emphasized the continued application of these rules during such leave. Therefore, offering a complimentary ticket would only be permissible if it clearly falls under a specific exception to the gift rules.

For further guidance on gift restrictions for both executive and legislative branch employees, please refer to our online resource: the Federal Lobbying Compliance Law section.

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