Civil Service FAQ Employee Ethical Conduct 2 — Questions and Answers
Question 1: A federal employee receives a holiday gift basket worth $30 from a contractor their agency regularly works with. What is the correct action?
- Accept it — gifts under $50 are always permitted
- Decline the gift or return it because it comes from a prohibited source (Correct answer)
- Keep it and report the value on their financial disclosure form
- Split it with coworkers so no single person benefits
Correct answer: Decline the gift or return it because it comes from a prohibited source
Federal ethics rules prohibit accepting gifts from prohibited sources — including contractors doing business with your agency — regardless of value. The $20 de minimis exception does not apply when the giver is a prohibited source.
Under 5 C.F.R. § 2635.203, a 'prohibited source' includes any person or company seeking official action from, doing business with, or regulated by the employee's agency. The $20 per-occasion exception is unavailable when the donor is a prohibited source. The employee must decline the gift before acceptance or, if already received, return or pay fair market value for it.
Question 2: Which of the following best describes a 'conflict of interest' for a government employee?
- Disagreeing with a supervisor's management style
- Having a personal financial interest that could improperly influence an official decision (Correct answer)
- Working longer hours than a colleague on the same project
- Preferring one vendor's product features over another's
Correct answer: Having a personal financial interest that could improperly influence an official decision
A conflict of interest exists when an employee's personal financial interests — such as stock holdings, outside employment, or business relationships — could improperly influence how they carry out their official duties.
18 U.S.C. § 208 makes it a federal crime for an employee to participate in a matter in which they have a personal financial interest. Agencies use recusal, divestiture, or blind trusts to manage such conflicts. The key element is the potential for personal gain to distort official decision-making, not merely holding a different professional opinion.
Question 3: What is 'misuse of position' in the context of federal ethics rules?
- Using government resources or authority to benefit oneself or others outside official duties (Correct answer)
- Accepting a higher-grade assignment without formal promotion paperwork
- Volunteering for extra duties beyond one's job description
- Disagreeing with agency policy through official grievance channels
Correct answer: Using government resources or authority to benefit oneself or others outside official duties
Misuse of position occurs when an employee uses their government title, authority, resources, or information to gain a private benefit for themselves or others, which is prohibited under the Standards of Ethical Conduct.
5 C.F.R. § 2635.702 prohibits employees from using their public office for private gain, using official time for non-official purposes, endorsing products or services using their official title, or inducing subordinates to perform personal favors. Even implying government endorsement or authority in private dealings constitutes misuse of position.
Question 4: An employee discovers their colleague is inflating travel reimbursement claims. Under whistleblower protection rules, what should the employee do?
- Stay silent to avoid workplace conflict
- Report the misconduct through proper channels such as the Inspector General or OSC (Correct answer)
- Confront the colleague directly and demand they repay the funds
- Report only if they have witnessed more than three incidents
Correct answer: Report the misconduct through proper channels such as the Inspector General or OSC
Employees who report fraud, waste, or abuse through proper channels — such as the Inspector General, Office of Special Counsel, or designated ethics officials — are protected under the Whistleblower Protection Act from retaliation.
The Whistleblower Protection Act of 1989 (WPA), as strengthened by the Whistleblower Protection Enhancement Act of 2012, protects federal employees who disclose a violation of law, rule, or regulation, gross mismanagement, gross waste, abuse of authority, or a substantial and specific danger to public health or safety. Proper channels include the agency IG, the OSC, or Congress. Retaliation is itself a prohibited personnel practice under 5 U.S.C. § 2302.
Question 5: Under the Hatch Act, which activity is generally PROHIBITED for most federal civilian employees?
- Voting in federal, state, or local elections
- Running for partisan political office while on active federal employment (Correct answer)
- Displaying a political bumper sticker on a personal vehicle
- Signing a political petition as a private citizen
Correct answer: Running for partisan political office while on active federal employment
The Hatch Act prohibits most federal employees from running as candidates for public office in partisan elections, using official authority to influence elections, and soliciting political contributions from subordinates.
5 U.S.C. §§ 7321–7326 (the Hatch Act) distinguishes between 'further restricted' employees (e.g., SES, those in sensitive positions) and other employees. All federal civilian employees are prohibited from running in partisan elections, using their official position to influence elections, and soliciting political contributions in government buildings or from subordinates. Permitted activities include voting, expressing personal opinions off duty, and making personal campaign donations.
Question 6: What is the primary purpose of mandatory financial disclosure reports required of certain federal employees?
- To calculate the employee's federal income tax liability
- To identify potential conflicts of interest between personal finances and official duties (Correct answer)
- To determine eligibility for government-sponsored retirement benefits
- To verify compliance with federal pay caps
Correct answer: To identify potential conflicts of interest between personal finances and official duties
Financial disclosure reports allow ethics officials to identify potential conflicts between an employee's personal financial interests — investments, outside income, liabilities — and their official responsibilities, enabling timely recusal or divestiture.
Under the Ethics in Government Act of 1978, senior officials file public OGE Form 278; other employees file confidential OGE Form 450. Ethics officials review these to spot conflicts and advise on remedies such as recusal, divestiture, waiver, or placement in a qualified blind trust. The reports are not used for tax assessment or pay calculations.
Civil Service FAQ Employee Ethical Conduct 2
A federal employee receives a holiday gift basket worth $30 from a contractor their agency regularly works with.
What is the correct action?