[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR73.735-503]



[Page 173-174]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 73_STANDARDS OF CONDUCT--Table of Contents

 

               Subpart E_Gifts, Entertainment, and Favors

 

Sec.  73.735-503  Criminal provisions relating to gifts, entertainment, 

and favors.



    (a) The law provides criminal penalties for whoever, directly or 

indirectly:

    (1) Receives or accepts anything of value for or because of any 

official act the employee has performed or will perform; or



[[Page 174]]



    (2) Gives, offers or promises anything of value for the performance 

of an official act or to influence the performance of an official act. 

18 USC 201.

    (b) The law prohibits an employee from receiving any salary or any 

contribution to, or supplementation of, his or her salary as 

compensation for services as an officer or employee of the Government 

from any source other than the United States or any State, county or 

municipality. This law does not prohibit an employee from continuing to 

participate in a bona fide pension, retirement, group life, health or 

accident insurance, profit-sharing, stock bonus or other employee 

welfare or benefit plan maintained by a former employer. 18 U.S.C. 209.



    Example 1: A corporate executive is asked to accept a position in 

the Department. The corporation offers to continue to pay the executive 

the difference between his or her salary as a Government employee and 

that received by an employee of the corporation. Such payment would be 

considered to be ``compensation for'' the employee's Government service 

and is prohibited.

    Example 2: A corporate executive is asked to accept a position in 

the Department. The corporation proposes to pay him or her a special 

severance payment in anticipation of this or her serving in the 

Government. This proposal would be prohibited because there is no 

distinction between the proposed lump-sum payment and the prohibited 

continuation of salary payments described in the example above.

    Example 3: A corporate executive is asked to accept a position in 

the Department. The corporation has an established policy which provides 

for an amount of severance pay to be paid any departing executive and 

proposes to make payment based on that policy when the executive leaves. 

The executive may accept the payment. Under these circumstances it is 

clear that the severance pay is in payment for past services not in 

anticipation of the future services for the Government.