Memorandum

Dear Colleagues,

We are quickly approaching that time of year when office parties, receptions, and open houses are traditionally held and gifts are exchanged. My office has already received a number of questions related to gifts and I thought it might be prudent (please excuse the pun) to remind all CSOSA and PSA staff of the rules that apply to holiday parties and gifts. For those of you with a photographic memory, this e-mail may seem to be fairly familiar because it is. It is the same basic e-mail (with some slight modifications) that I have sent out every year since I have been here. Basically, nothing in the ethics regulations or the interpretations have changed. But, we have a lot of new staff and they were not present last year to receive my pearls of wisdom. In addition, as one of my priest friends has reminded me: "repetition is good for the soul." So, therefore, let us review the law and a few suggestions from your friendly neighborhood ethics officer. 

Gifts from outside sources. (See 5 C.F.R. 2635.201). The standards of conduct generally prohibit an employee from accepting a gift from someone doing business with CSOSA or PSA or that is given because of his/her official position. Exceptions to this general prohibition on accepting gifts from someone doing business with us (i.e., a prohibited source) include situations based on a preexisting personal relationship with the gift giver and unsolicited gifts valued at $20 or less (with a limit of $50 per year from one source). In addition, gifts of perishable items worth more than $20 may be shared within the office with the approval of the employee’s supervisor or an ethics counselor. Remember, it is never inappropriate and sometimes it is very prudent (oops, there's that word again) to decline a gift. Please feel free to blame the lawyers if it helps to get you out of a potentially sticky situation. Trust me, that excuse always works. 

No gift of any value should be accepted from or given to an offender, a defendant or their family or friends. No matter how well-meaning you may be, you have to be able to remain objective when it comes to the folks we supervise. Please do not compromise your objectivity by becoming too close to a defendant or an offender. 

Example: An employee who works in the Information Technology Office routinely deals with computer firms. One firm sends the employee a holiday fruit basket worth $40 in appreciation for the employee's helpful service. With the supervisor's or an ethics counselor's approval, he/she may share the fruit within the office.

Gifts between employees. (See 5 C.F.R. 2635.301). Employees may exchange gifts, regardless of value, among themselves as long as there is not a supervisor-subordinate relationship. Be mindful that if there is such a relationship, the gift regulations set forth reciprocal prohibitions: subordinates are prohibited from giving gifts to their supervisors that exceed $10 and supervisors are prohibited from accepting gifts from subordinates worth more than $10. Supervisors, however, may accept food and refreshments shared in the office or personal hospitality offered in the residence of a subordinate. If your office is planning an office party, remember that any contributions for food and refreshments by employees must be voluntary and nominal. Supervisors should not collect such contributions. In addition, there is no restriction on supervisors giving gifts to subordinates or subordinates accepting gifts from supervisors. I do, however, suggest that supervisors be ever mindful that giving a gift to one subordinate and not to another could raise issues of favoritism. Please be careful. With that being said, the giving of a gift should be from the heart - no one should feel compelled to give a gift if he/she does not want to. Be mindful too that not every employee celebrates Christmas, Hanukkah or Kwanzaa and we should be respectful of their beliefs and/or wishes. Remember, we value religious diversity at CSOSA and PSA. 

Example: Motivated by the holiday spirit, a secretary decides to give her supervisor a $15 poinsettia plant. The supervisor may not accept the plant because it exceeds $10 and no, it cannot be placed in the common area.

Please note, however, that the pooling of names for the exchange of gifts (e.g., "Secret Santa" exchanges) presents a rather peculiar situation. Since subordinates are prohibited from giving gifts to supervisors and supervisors are prohibited from accepting gifts from subordinates that exceed $10, the creation of a "Secret Santa" type gift exchange would pose a problem if the gift ceiling exceeded $10 and supervisory staff were included in the exchange. Therefore, if supervisors participate in these exchanges, the maximum gift amount permitted among the participants cannot exceed $10. I have found over the years that the $10 gift limit works just fine since most of the stuff I have received came from the dollar store. In the interest of simplicity, a $10 gift certificate to Starbucks was absolutely the most valuable and practical gift that I can recall receiving during one of these "Secret Santa" exchanges. Remember, when everything is said and done, it’s the thought that counts. 

Widely attended gatherings. (See 5 C.F.R. 2635.204(g)). For parties and receptions to which an employee is invited by a prohibited source or because of his/her official position, the $20 rule applies unless the event is one which is attended by a large number of people with a common interest and it has been determined by the Ethics Officer or his designee that the employee’s attendance would further either CSOSA’s or PSA’s interests. This is a very tricky rule and it would therefore be best to get advice as soon as the invitation arrives.

Example: An employee involved in procurement is invited to attend a holiday reception sponsored by a contractor. The lavish reception will be held at an exclusive hotel and 150 persons are expected including contractor employees. The employee may not accept the invitation unless the Ethics Officer or his designee has determined that his/her attendance is in CSOSA’s or PSA’s interest. 

This guidance only highlights some of the more commonly asked questions and does not cover every situation. If you have any specific questions or concerns, I strongly encourage you to contact any attorney in the Office of the General Counsel for advice. We can be reached at 220-5355. You may also want to visit the CSOSA intranet site. Click on General Counsel, then ethics and from there we can link you to a vast world of ethics-related information. You can also access the U.S. Office of Government Ethics website directly by clicking on the following link: www.usoge.gov. 

Please have a safe and wonderful holiday season and remember that ethics is what you do when no one is looking. Peace! 

George E. Pruden, II
General Counsel