Can government employees do business? Here is a list of the laws and regulations that govern government employees.
Can Government Employees Do Business: Government employees are often encouraged to start businesses or make passive income through side hustles or small business startups, but what about if you’re working in the government?
Can Government Employees Do Business
Is it safe and legal to make money from side jobs? Here’s everything you need to know about doing business while being employed in the government.
What are the laws around being a government employee?
Since 1968, as a federal employee, you can’t do business with an agency in which you work (this is called a criminal conflict of interest). This rule doesn’t apply to state employees, but each state has its own law and your employer may have even stricter policies. Unless you’re really well connected or particularly savvy, it probably isn’t worth it to try to start a business with government clients or customers unless they are outside your agency or department.
There are too many other potential legal issues that could arise, and no one wants their first meeting with the Ethics Officer. If you want to be entrepreneurial, go for it! Just don’t use your government position to gain access to contracts or information about potential opportunities. And remember: any time you leave government service for a job in private industry related to what you did at work, there may be questions about conflicts of interest – so think twice before quitting if there’s anything keeping you from doing so!
Even after leaving the government, there are certain activities that still need to be reported. For example, if you take a new job where you might end up lobbying your former agency on behalf of a client or company and haven’t been out long enough to avoid registering as a lobbyist under current rules, then you need to report those activities within 45 days after starting.
What does it mean when someone says I am leaving the government for greener pastures? That means they plan on making more money working somewhere else than they currently make working for the government.
Don’t be blinded by the badge
It’s not uncommon for public servants to start businesses. In fact, it’s quite common: Most government employees have a day job and freelance at night. But if you work for Uncle Sam, there are some things you need to know about doing business with your agency or other government agencies. Starting a side business can expose you to potential conflicts of interest—not just legal problems, but reputational ones as well.
Carefully avoid those issues by making sure your day job and your night gig don’t mix in any way that might cause questions or suspicions from your coworkers or others who interact with you in your professional capacity as a government employee. Here are some tips on how to keep it completely separate Never talk about your outside business with anyone at work; only talk about it with people outside of government service. Y
ou shouldn’t tell anyone inside your office what you’re working on or why; do so only after hours and only when talking to people outside of government service. That includes vendors and customers, too!
Know your role
If you are a government employee or considering going into business with an individual who is, it’s important to know what role you’ll play in your company. It may seem obvious that your role will be management-level, but many public servants don’t consider whether they should participate on a non-management level. If you’re interested in being more than just a face for government-friendly organizations and securing contracts for yourself (or even just providing services to other contractors), it’s important to know your status.
As mentioned above, government employees are prohibited from running corporations as owners and investors–you can still provide services to your company though! Just make sure you understand how to avoid conflicts of interest when doing so. For example, if you’re a city official seeking private sector work while you hold office, make sure your contract is signed before taking office. This way there won’t be any confusion about whether or not you have potential conflicts of interest.
Doing so could save you some trouble down the road. In addition, never use your position to secure a deal or gain access to information others wouldn’t have access to. Not only is it illegal, but it’s also unfair and unprofessional. Instead, put together an advisory board consisting of industry professionals who can help advise you on all things related to your business endeavors.
You’ll get expert advice without having to break any rules! For tips on maintaining integrity in your career as well as resources regarding government, and ethics contact us at (877) 456-1257 today.
Keep records
There are a lot of grey areas in business that even people who’ve been involved in it for years don’t know about. This is a challenge for anyone considering a career transition, whether or not it involves starting your own business or taking on something new within an existing organization. One of those grey areas is lobbying: do you need to register as a lobbyist if you want to talk to Congress about something you care about?
If so, how do you define lobbying, and what paperwork do you have to file with Congress or your state legislature to register as one? What if there are federal grants available related to what you care about—can government employees receive them without risking their job security? Can you start a company when you work for a non-profit or does that count as self-dealing?
The only way to find out is by asking someone who knows more than you do. You can always ask an ethics officer at your workplace (or better yet, contact the Office of Government Ethics directly), but they might not be able to give you any specific advice. They might also tell you they can’t answer because they’re bound by ethical rules themselves.
However, there’s nothing stopping them from telling you where else to look; these days most organizations have some kind of formalized process for gathering information and making decisions like these (even if it’s just asking around), so ask until someone gives up some useful information!
Are you really an Agent?
There’s no denying that some of your new business will come through existing relationships—your existing clients, your circle of friends, and maybe even a few family members. However, while you may be passionate about your work, it doesn’t necessarily mean that others are. So what should you do when someone asks if they can use your services for their own needs?
The first step is to figure out whether or not they can actually pay you for them. If you answer yes to all three questions below, then go ahead and treat them as a client: Are they in need of your services? Can they afford them? Will you get paid? If so, then yes, you can do business with government employees. But if any one of these answers is no, then unfortunately you cannot. It’s better to know now than later, right?
There’s more…As an entrepreneur working within an industry that has already been heavily saturated by big-name competitors, you must be willing to face an uphill battle on a daily basis. Even though there might already be dozens of other companies doing what you’re doing, your ability to remain successful is dependent upon how well you adapt to change and continue learning throughout your career.
In order for that to happen successfully, here are two rules every entrepreneur must follow: 1) Learn from Your Mistakes When was the last time you really sat down and thought about why something didn’t turn out exactly how you wanted it to?
The grey areas (Lobbying, grants, contracts)
When you’re a government employee, it may be tempting to take some of your knowledge and experience from your day job and apply it to starting a side business. In most cases, that’s fine. The real question is: Can you actually use any confidential information, such as insider knowledge about how your agency works or what partners it works with?
Can you share work documents or binders full of materials for business purposes? The short answer is yes — but there are many gray areas that are worth consulting an ethics officer about first. For example, if you have access to grant money, can you use it for personal reasons? If you get approval for outside work, does that mean your boss has approved everything you do in your free time?
These are questions best answered by someone who knows all of the rules. (And yes, there will always be exceptions.) But before taking advantage of those exceptions, make sure they’re allowed by law. It’s much easier to avoid problems than fix them later.
Also Read: What Business Can I Start With 50 Lakh?
Conclusion
The answer is yes, of course. But, as a government employee, you will always be under scrutiny as to how what you do can cause harm to your agency or department and could get you in trouble with your superiors.
As a good federal employee, it’s important to learn what’s right and wrong when it comes to doing business. There are many ways that you can start a business outside of work or while on vacation or even before leaving your job with Uncle Sam.
