To Receive Gifts or Not Receive Them? Here Are the Ethical Answers
With Christmas just around the corner, there’s no better time to review how the ethics rules apply to Exchange associates during the holiday season, particularly when it comes to gifts, gift exchanges, parties, and receptions.
As a brief refresher on gifts, it’s important to remember that associates may not accept gifts offered because of their official positions or offered by a “prohibited source” unless an exception applies. A prohibited source is anyone who: seeks official action by the Exchange; does business or seeks to business with the Exchange; conducts activities regulated by the Exchange; or has interests that may be substantially affected by the employee’s performance of duty. Gifts include any item of value. Thus, free attendance at dinners or other meals, receptions and tickets to sporting events are all examples of gifts.
What about gift exchanges? Generally, supervisors may not accept gifts from subordinates or Federal personnel who receive less pay than them. However, an exception allows that on an occasional basis, including any occasion on which gifts are traditionally given or exchanged, supervisors may accept gifts (other than cash) valued at $10 or less from a subordinate. Thus, as long as the gift limit is $10, supervisors may participate. There are no ethical restrictions on gifts given to peers or subordinates (common sense and good taste should apply).
How about contractors? Exchange associates are prohibited from soliciting gifts from contractor employees. Furthermore, associates may not accept unsolicited gifts from contractor employees unless an exception applies. One of these exceptions is the “$20/$50” rule, which allows employees to accept gifts not exceeding $20, as long as the total amount of gifts that the individual accepts from that source does not exceed $50 for the year. In addition, employees may accept gifts based on a bona fide personal relationship (note: these are generally limited to family and close personal friendships that are outside the workplace).
Lastly, let’s talk about parties, open houses, and receptions. Associates may attend social events sponsored by non-prohibited sources if no guests are charged admission. If hosted by a prohibited source, the invitation should be treated as a gift. However, there are certain exceptions. Events that are open to the public, including all government employees, are fair game. Invitations offered to a group or class that is not related to government employment may be accepted. Modest items of refreshments, such as coffee and pastries, may be accepted. Finally, gifts based on a spouse’s outside business or employment relationship are good to go.
As a final reminder, Exchange associates my not accept a gift from an outside source, even when one of the exceptions applies, if the gift was solicited or given in return for being influenced in the performance of an official act. Happy Holidays!
