Companies are increasingly hiring out of the federal workforce, only to find that their new hires are restricted by “revolving door” rules that prohibit their participation in certain matters – sometimes for a limited time, sometimes permanently. New rules issued recently by the U.S. Office of Government Ethics (“OGE”) serve as a reminder that, even before hiring a federal employee, a company may find itself entangled in federal ethics rules that regulate the job negotiation process.

Under existing rules, federal employees seeking nonfederal employment may need to recuse themselves from handling matters involving potential employers with whom they are discussing future employment. Once hired, the “revolving door” rules may prohibit a former federal employee from making communications to, or appearances before, the federal government.  State bar rules may impose further restrictions if the federal employee is a lawyer. 

The new rules are a revision of 5 C.F.R. Part 2635, governing how federal employees may interact with potential nonfederal employers. The rules address the criminal conflict of interest law at 18 U.S.C. § 208, the requirements of Executive Orders 12674 and 12731, and, with this revision, the notification and disclosure requirements of the Stop Trading on Congressional Knowledge Act (“STOCK Act”). The newly issued rules include substantive additions and changes that will affect employers. The most important ones are highlighted below. They take effect August 25, 2016.

Keep reading this advisory here.