TO: Cabinet Secretaries FROM: State Public Integrity Commission DATE: May 22, 1998 SUBJECT: Ethics Bulletin 007 - Post Employment Recently, an agency expressed concern that the post-employment provision need੥挀氀愀爀椀昀椀挀愀琀椀漀渀⸀  吀栀攀 愀最攀渀挀礀 猀愀椀搀 椀琀 愀瀀瀀愀爀攀渀琀氀礀 挀漀甀氀搀 栀椀爀攀 昀漀爀洀攀爀 攀洀瀀氀漀礀攀攀猀 漀渀 愀਀挀愀猀甀愀氀⼀猀攀愀猀漀渀愀氀 戀愀猀椀猀 琀漀 眀漀爀欀 漀渀 洀愀琀琀攀爀猀 眀栀攀爀攀 琀栀攀礀 最愀瘀攀 愀渀 漀瀀椀渀椀漀渀Ⰰ 攀琀挀⸀Ⰰ 愀昀琀攀爀 琀 State employment, but could not privately contract with former employees for the ੳ眀漀爀欀⸀ 䘀漀爀 攀砀愀洀瀀氀攀Ⰰ 愀 昀漀爀洀攀爀 攀洀瀀氀漀礀攀攀 氀攀愀瘀攀猀 猀琀愀琀攀 攀洀瀀氀漀礀洀攀渀琀Ⰰ 最漀攀猀 椀渀琀漀 戀甀猀椀渀攀猀猀 themselves, and then seeks to contract with their former agency to perform essent੩猀愀洀攀 樀漀戀 琀栀攀礀 瀀爀攀瘀椀漀甀猀氀礀 栀攀氀搀⸀  匀攀攀Ⰰ 䌀漀洀洀椀猀猀椀漀渀 伀瀀⸀ 一漀⸀ 㤀㜀ⴀ㄀㠀⸀਀਀吀栀攀 瀀漀猀琀ⴀ攀洀瀀氀漀礀洀攀渀琀 爀攀猀琀爀椀挀琀椀漀渀 瀀爀漀瘀椀搀攀猀㨀਀਀          一漀 瀀攀爀猀漀渀 眀栀漀 栀愀猀 猀攀爀瘀攀搀 愀猀 愀 猀琀愀琀攀 攀洀瀀氀漀礀攀攀Ⰰ 猀琀愀琀攀 漀昀昀椀挀攀爀 漀爀 栀漀渀漀爀愀爀礀਀     猀琀愀琀攀 漀昀昀椀挀椀愀氀 猀栀愀氀氀 爀攀瀀爀攀猀攀渀琀 漀爀 漀琀栀攀爀眀椀猀攀 愀猀猀椀猀琀 愀 瀀爀椀瘀愀琀攀 攀渀琀攀爀瀀爀椀猀攀 漀渀਀     洀愀琀琀攀爀猀 椀渀瘀漀氀瘀椀渀最 琀栀攀 匀琀愀琀攀Ⰰ 昀漀爀 愀 瀀攀爀椀漀搀 漀昀 ㈀ 礀攀愀爀猀 愀昀琀攀爀 琀攀爀洀椀渀愀琀椀漀渀 漀昀਀     攀洀瀀氀漀礀洀攀渀琀 漀爀 愀瀀瀀漀椀渀琀攀搀 猀琀愀琀甀猀 眀椀琀栀 琀栀攀 匀琀愀琀攀Ⰰ 椀昀 琀栀攀 瀀攀爀猀漀渀 最愀瘀攀 愀渀਀     漀瀀椀渀椀漀渀Ⰰ 挀漀渀搀甀挀琀攀搀 愀渀 椀渀瘀攀猀琀椀最愀琀椀漀渀Ⰰ 漀爀 漀琀栀攀爀眀椀猀攀 眀愀猀  搀椀爀攀挀琀氀礀 愀渀搀 洀愀琀攀爀椀愀氀氀礀਀     爀攀猀瀀漀渀猀椀戀氀攀 昀漀爀 猀甀挀栀 洀愀琀琀攀爀 椀渀 琀栀攀 挀漀甀爀猀攀 漀昀 漀昀昀椀挀椀愀氀 搀甀琀椀攀猀 愀猀 愀 猀琀愀琀攀਀     攀洀瀀氀漀礀攀攀Ⰰ 漀昀昀椀挀攀爀 漀爀 漀昀昀椀挀椀愀氀⸀  一漀爀 猀栀愀氀氀 愀渀礀 昀漀爀洀攀爀 猀琀愀琀攀 攀洀瀀氀漀礀攀攀Ⰰ 猀琀愀琀攀਀     漀昀昀椀挀攀爀 漀爀 栀漀渀漀爀愀爀礀 猀琀愀琀攀 漀昀昀椀挀椀愀氀 搀椀猀挀氀漀猀攀 挀漀渀昀椀搀攀渀琀椀愀氀 椀渀昀漀爀洀愀琀椀漀渀 最愀椀渀攀搀 戀礀਀     爀攀愀猀漀渀 漀昀 瀀甀戀氀椀挀 瀀漀猀椀琀椀漀渀 渀漀爀 猀栀愀氀氀 琀栀攀 瀀攀爀猀漀渀 漀琀栀攀爀眀椀猀攀 甀猀攀 猀甀挀栀 椀渀昀漀爀洀愀琀椀漀渀਀     昀漀爀 瀀攀爀猀漀渀愀氀 最愀椀渀 漀爀 戀攀渀攀昀椀琀⸀  ㈀㤀 䐀攀氀⸀ 䌀⸀ ꜀ 㔀㠀　㔀⠀搀⤀⸀  ਀਀䤀渀 搀椀猀挀甀猀猀椀渀最 琀栀攀 昀攀搀攀爀愀氀 瀀漀猀琀 攀洀瀀氀漀礀洀攀渀琀 瀀爀漀瘀椀猀椀漀渀 猀椀洀椀氀愀爀 琀漀 䐀攀氀愀眀愀爀攀ᤀ猠Ⰰ 琀栀攀 唀渀椀琀 States Congress noted: like other conflict of interest statutes, post employment pੲ愀爀攀 洀攀愀渀琀 琀漀 椀渀猀甀爀攀 瀀甀戀氀椀挀 挀漀渀昀椀搀攀渀挀攀 椀渀 琀栀攀 椀渀琀攀最爀椀琀礀 漀昀 琀栀攀 最漀瘀攀爀渀洀攀渀琀⸀  ᰀ䔠琀栀椀挀猀 Government Act,” Senate Report No. 95-170, p. 32. It said public confidence in government has been weakened by a widespread conviction that government offici੡琀栀攀椀爀 漀昀昀椀挀攀 昀漀爀 瀀攀爀猀漀渀愀氀 最愀椀渀Ⰰ 瀀愀爀琀椀挀甀氀愀爀氀礀 愀昀琀攀爀 氀攀愀瘀椀渀最 琀栀攀 最漀瘀攀爀渀洀攀渀琀⸀  䤀搀⸀     吀 sense that a “revolving door” exists between industry and government ...[which] l੥਀਀਀਀਀਀਀਀਀䔀琀栀椀挀猀 䈀甀氀氀攀琀椀渀 　　㜀 ⴀ 倀漀猀琀 䔀洀瀀氀漀礀洀攀渀琀਀倀愀最攀 ㈀਀਀਀愀 猀甀猀瀀椀挀椀漀渀 琀栀愀琀 瀀攀爀猀漀渀愀氀 瀀爀漀昀椀琀 眀愀猀 琀栀攀 洀漀琀椀瘀愀琀椀漀渀⸀  䤀搀⸀  吀栀攀爀攀 愀氀猀漀 椀猀 瀀甀戀氀椀挀 挀漀渀 former employees may use information, influence, and access acquired during gov੥猀攀爀瘀椀挀攀 昀漀爀 椀洀瀀爀漀瀀攀爀 愀渀搀 甀渀昀愀椀爀 愀搀瘀愀渀琀愀最攀 椀渀 氀愀琀攀爀 搀攀愀氀椀渀最猀 眀椀琀栀 琀栀愀琀 搀攀瀀愀爀琀洀攀渀琀 漀爀 Id. at 33. Reflecting that concern, post employment laws set a “cooling off perio੤挀攀爀琀愀椀渀 愀爀攀愀猀 眀栀椀挀栀 琀栀攀 攀砀ⴀ攀洀瀀氀漀礀攀攀 搀攀愀氀琀 眀椀琀栀 眀栀椀氀攀 眀漀爀欀椀渀最 愀琀 琀栀攀 愀最攀渀挀礀⸀  䤀搀⸀਀਀匀椀洀椀氀愀爀氀礀Ⰰ 琀栀攀 䐀攀氀愀眀愀爀攀 䰀攀最椀猀氀愀琀甀爀攀 猀漀甀最栀琀 琀漀 椀渀猀甀爀攀 瀀甀戀氀椀挀 挀漀渀昀椀搀攀渀挀攀 椀渀 琀栀攀 椀渀琀攀最 government. 29 Del. C. § 5802. It set a two-year “cooling off period” in areas w੨昀漀爀洀攀爀 攀洀瀀氀漀礀攀攀 眀愀猀 ᰀ搠椀爀攀挀琀氀礀 愀渀搀 洀愀琀攀爀椀愀氀氀礀 爀攀猀瀀漀渀猀椀戀氀攀Ⰰᴀ†攀琀挀⸀   ㈀㤀 䐀攀氀⸀ 䌀⸀ ꜀ 㔀㠀　㔀 limits the actual or perceived unfair advantage in subsequent dealings with a dep੡漀爀 愀最攀渀挀礀⸀  䌀漀洀洀椀猀猀椀漀渀 伀瀀⸀ 一漀⸀ 㤀㜀ⴀ㄀㠀⸀ 吀栀甀猀Ⰰ 琀栀椀猀 䌀漀洀洀椀猀猀椀漀渀 栀愀猀 栀攀氀搀 琀栀愀琀 䐀攀氀愀眀愀 post-employment provision is an attempt to eliminate concerns that when a State ੥洀漀瘀攀猀 昀爀漀洀 匀琀愀琀攀 攀洀瀀氀漀礀洀攀渀琀 琀漀 瀀爀椀瘀愀琀攀 攀洀瀀氀漀礀洀攀渀琀 琀栀愀琀 琀栀攀礀 搀漀 渀漀琀 甀猀攀 琀栀攀椀爀 昀漀爀洀 State position to get a “leg-up” on others in the private sector who also seek to ੤琀栀攀 最漀瘀攀爀渀洀攀渀琀⸀  䌀漀洀洀椀猀猀椀漀渀 伀瀀⸀ 一漀⸀ 㤀㜀ⴀ㄀㄀⸀ 䄀搀搀椀琀椀漀渀愀氀氀礀Ⰰ 椀琀 椀猀 琀漀 愀瘀漀椀搀 琀栀攀 爀椀猀欀 琀栀 a State employee moves to the private sector that they will not exercise undue inf੬漀渀 琀栀攀椀爀 昀漀爀洀攀爀 挀漀氀氀攀愀最甀攀猀⸀  䌀漀洀洀椀猀猀椀漀渀 伀瀀⸀ 一漀⸀ 㤀㘀ⴀ㜀㔀⸀਀਀䰀漀漀欀椀渀最 昀椀爀猀琀 愀琀 琀栀攀 猀琀愀琀甀琀漀爀礀 氀愀渀最甀愀最攀Ⰰ 眀攀 昀椀爀猀琀 渀漀琀攀 琀栀愀琀 椀琀 愀瀀瀀氀椀攀猀 琀漀 ᰀ映漀爀洀攀爀 攀洀 who represent a “private enterprise on matters involving the State.” Under the peੲ氀愀眀Ⰰ 挀愀猀甀愀氀⼀猀攀愀猀漀渀愀氀 攀洀瀀氀漀礀攀攀猀 愀爀攀Ⰰ  ᰀ攠洀瀀氀漀礀攀搀 戀礀 琀栀攀 匀琀愀琀攀⸀ᴀ† ㈀㤀 䐀攀氀⸀ 䌀⸀ ꜀ 㔀㤀　㌀⠀ They also are State employees under the Code of Conduct. 29 Del. C. § 5804(11)(a)(“State employee” means persons who receive compensation as an empl੯漀昀 琀栀攀 匀琀愀琀攀⤀⸀  吀栀甀猀Ⰰ 琀栀攀礀 愀爀攀 挀甀爀爀攀渀琀Ⰰ 渀漀琀 昀漀爀洀攀爀Ⰰ 攀洀瀀氀漀礀攀攀猀⸀  䄀氀猀漀Ⰰ 眀栀攀渀 挀愀猀甀愀氀⼀ employees work on “matters involving the State,” they do not represent a “private enterprise,” as the definition does not include the State as a private enterprise, ੢猀攀瀀愀爀愀琀攀氀礀 愀渀搀 搀椀猀琀椀渀挀琀氀礀 搀攀昀椀渀攀猀 ᰀ匠琀愀琀攀⸀ᴀ†㈀㤀 䐀攀氀⸀ 䌀⸀ ꜀ 㔀㠀　㐀⠀㠀⤀ 愀渀搀 ⠀㤀⤀⸀ ਀਀吀栀攀 搀椀猀琀椀渀挀琀椀漀渀 戀攀琀眀攀攀渀 ᰀ挠愀猀甀愀氀⼀猀攀愀猀漀渀愀氀 攀洀瀀氀漀礀攀攀猀ᴀ† 愀渀搀 ᰀ映漀爀洀攀爀 攀洀瀀氀漀礀攀攀猀ᴀ†愀氀猀漀 consistent with the statutory purpose. Hiring standards for casual/seasonal emplo੹猀攀琀 戀礀 匀琀愀琀攀 氀愀眀猀 愀渀搀 匀琀愀琀攀 瀀攀爀猀漀渀渀攀氀 爀甀氀攀猀 爀攀最愀爀搀椀渀最 琀栀攀 愀洀漀甀渀琀 漀昀 猀愀氀愀爀礀Ⰰ 氀攀渀最琀栀 employment, etc. Conversely, a former employee who seeks a private contract c੡渀攀最漀琀椀愀琀攀 眀椀琀栀 琀栀攀椀爀 昀漀爀洀攀爀 愀最攀渀挀礀 昀漀爀 琀栀攀猀攀 琀攀爀洀猀⸀  吀栀甀猀Ⰰ 琀栀攀礀 栀愀瘀攀 愀渀 漀瀀瀀漀爀琀甀渀椀琀 influence former colleagues. They could negotiate a higher salary than they had ੷攀洀瀀氀漀礀攀搀 戀礀 琀栀攀 匀琀愀琀攀 漀爀 愀 栀椀最栀攀爀 猀愀氀愀爀礀 琀栀愀渀 挀甀爀爀攀渀琀 攀洀瀀氀漀礀攀攀猀 漀爀 挀愀猀甀愀氀⼀猀攀愀猀漀渀愀 employees in the same position. This raises the specter of financially capitalizi੮昀漀爀洀攀爀 攀洀瀀氀漀礀洀攀渀琀 愀渀搀 漀戀琀愀椀渀椀渀最 愀渀 甀渀昀愀椀爀 愀搀瘀愀渀琀愀最攀⸀ 吀栀攀 昀漀氀氀漀眀椀渀最 椀氀氀甀猀琀爀愀琀攀猀 猀漀 differences between “casual/seasonal employees” and “former employees” hired b੹挀漀渀琀爀愀挀琀㨀਀਀਀਀਀਀਀䔀琀栀椀挀猀 䈀甀氀氀攀琀椀渀 　　㜀 ⴀ 倀漀猀琀 䔀洀瀀氀漀礀洀攀渀琀਀倀愀最攀 ㌀਀਀਀ऀऀऀऀऀ䌀愀猀甀愀氀⼀匀攀愀猀漀渀愀氀ऀऀ䌀漀渀琀爀愀挀琀漀爀猀਀਀吀椀洀攀 䰀椀洀椀琀猀 漀渀 䔀洀瀀氀漀礀洀攀渀琀ऀ匀攀琀 戀礀 氀愀眀ऀऀऀ䌀愀渀 渀攀最漀琀椀愀琀攀 ਀਀匀愀氀愀爀礀 䰀椀洀椀琀猀ऀऀऀ匀攀琀 戀礀 氀愀眀ऀऀऀ䌀愀渀 渀攀最漀琀椀愀琀攀਀਀                                             䈀攀渀攀昀椀琀猀ऀऀऀ        ऀ䈀攀渀攀昀椀琀猀 搀攀渀椀 e.g., no leave, medical, or for salary sufficient to etc. cover such benefits Disciplinary actions (such No right to grieve Can challenge o੮愀猀 昀椀爀椀渀最⤀ऀऀऀऀऀऀऀऀ漀昀 挀漀渀琀爀愀挀琀 琀攀爀洀猀਀਀刀攀挀攀椀瀀琀 漀昀 倀攀渀猀椀漀渀ऀऀ      ऀ䘀漀爀洀攀爀 攀洀瀀氀漀礀攀攀猀 眀栀漀ऀ一漀 爀攀搀甀挀琀椀漀渀 椀渀 瀀攀渀猀椀漀 retire and are entitled to a State pension, then are hired as a casual/seasonal, can have their pension reduced while on the State payroll. Thus, by law, casual/seasonal employment does not hold the enticements a privat੥挀漀渀琀爀愀挀琀 栀漀氀搀猀⸀  吀栀攀 猀琀愀琀甀琀漀爀礀 氀椀洀椀琀猀 漀渀 挀愀猀甀愀氀⼀猀攀愀猀漀渀愀氀 攀洀瀀氀漀礀攀攀猀 猀攀琀 愀挀爀漀猀猀 琀栀攀 standards which the former employee cannot influence and insures equal standardੳ琀栀漀猀攀 猀攀攀欀椀渀最 琀栀攀 瀀漀猀椀琀椀漀渀猀⸀  伀渀 琀栀攀 漀琀栀攀爀 栀愀渀搀Ⰰ 琀栀攀 瀀爀椀瘀愀琀攀 挀漀渀琀爀愀挀琀 最椀瘀攀猀 琀栀攀 昀漀爀 employee a chance to: (1) financially benefit more than if hired as a casual/seaੳ⠀㈀⤀ 椀渀昀氀甀攀渀挀攀 昀漀爀洀攀爀 挀漀氀氀攀愀最甀攀猀ᤀ†搀攀挀椀猀椀漀渀猀 漀渀 栀椀爀椀渀最Ⰰ 猀愀氀愀爀礀Ⰰ 攀琀挀⸀ ਀ ਀挀挀㨀ऀ䜀漀瘀攀爀渀漀爀 吀栀漀洀愀猀 刀⸀ 䌀愀爀瀀攀爀਀਀一伀吀䔀㨀  圀栀攀渀 琀栀椀猀 戀甀氀氀攀琀椀渀 眀愀猀 椀猀猀甀攀搀Ⰰ 爀攀琀椀爀攀攀猀 眀栀漀 眀攀爀攀 爀攀ⴀ栀椀爀攀搀 愀猀 挀愀猀甀愀氀⼀猀攀愀猀漀渀 employees had a pension offset. On August 12, 2002, Governor Ruth Ann Minner s੩匀攀渀愀琀攀 䈀椀氀氀 㐀㌀㤀 椀渀琀漀 氀愀眀⸀  吀栀愀琀 氀愀眀 愀洀攀渀搀猀 ㈀㤀 䐀攀氀⸀ 䌀⸀ ꜀ 㔀㌀　㌀⠀愀⤀⠀㄀⤀ ⠀挀⤀ 愀渀搀 ㈀㤀 䐀攀氀⸀ 5502(a)(3), to allow pensioners under the State Employees Pension Plan to be emp੬戀礀 琀栀攀 匀琀愀琀攀 椀渀 愀 琀攀洀瀀漀爀愀爀礀Ⰰ 挀愀猀甀愀氀Ⰰ 猀攀愀猀漀渀愀氀Ⰰ 漀爀 猀甀戀猀琀椀琀甀琀攀 瀀漀猀椀琀椀漀渀 眀椀琀栀漀甀琀 愀渀礀 攀 limitations or without affecting their current pension benefits.