HOLIDAY ETHICSfor

Postal Employees

HOLIDAY ETHICSfor

Postal Employees

November 2008USPS Law DepartmentEthics PracticeHeadquarters

Gift GuidelinesGift Guidelines

All year long, but especially during the holiday season, postal employees may be offered gifts from co-workers, and sometimes from people and companies outside of the Postal Service.

In many circumstances, certain types of gifts may be accepted. However, in some situations, the Federal ethics rules don’t permit acceptance, and our employees must say “No, thank you.”

Gift Guidelines (cont’d)Gift Guidelines (cont’d)

When referring to the gifts rules, it’s important to know who is giving the gift. The rules apply differently in situations where the giver is a fellow postal employee, for example, than they do when the giver is an “outside” (non-postal) person or organization, or a personal friend or relative.

The rules also take into consideration whether the gift was offered because of an employee’s postal position.

What is a gift?

The term “gift” -- which is always defined the same way, no matter who the “giver” is -- means ALMOST ANYTHING OF MONETARY VALUE. And a gift doesn’t necessarily come wrapped up in fancy paper and ribbon!

Meals, parties, gift certificates, merchandise, event tickets, apparel, transportation, lodging, and cash are all examples of gifts.

What is NOT a gift? Some items are NOT included under the

definition of “gift,” so they may almost always be accepted:• modest refreshments such as coffee,

doughnuts, cookies, or soda (“snacks” rather than “meals”);

• items with little intrinsic value, such as inexpensive pens, plaques, or mugs;

• items paid for by the Postal Service; • items for which you paid market value, • and most prizes in contests open to the public.

What if the gift is PERISHABLE?What if the gift is PERISHABLE? Because a perishable item (food, candy, fruit,

flowers, etc.) is usually difficult – if not impossible – to return to the sender, you may keep it so long as you share it with others in your office.

Yes, Virginia, believe it or not, fruitcakes ARE considered perishable….

REMINDER:

POSTAL EMPLOYEES

MAY NEVER ACCEPT CASH*

FROM OUTSIDE SOURCES*Or cash equivalents -- such as stock, money orders, or checks -- that may be exchanged for cash. HOWEVER, retail gift cards that have a face value of $20 or less, are designed for use in a retail store, and can not be converted directly to cash, MAY be accepted. Read on…

Gifts from Prohibited Outside SourcesGifts from Prohibited Outside SourcesWith certain limited exceptions, you may not accept a gift from a prohibited outside source, OR a gift given to you because of your postal position. Generally, a prohibited source is a person or organization who has business with the Postal Service, seeks to do business with the Postal Service, is regulated by the Postal Service, or is affected by performance of your duties. If a prohibited source offers you a gift, you may not accept it unless it falls under an exception to the ethics rules.

Note: You never have to accept a gift.You never have to accept a gift. In fact, if accepting a gift might

create an appearance of impropriety, it’s smart to decline it.

A gracious “No, thank you - providing good service is my job!” is a fool-proof way to avoid having any gift-related ethics conflict.

Gifts from Prohibited SourcesGifts from Prohibited SourcesThe most frequently applied exception to the gift

rule is this:

You may accept an unsolicited gift from a prohibited source as long as it is worth $20 or less per occasion, and you accept no more than a total of $50-worth of gifts from that specific source during any one calendar year.

A “specific prohibited source” includes the organization itself AND each of its individual employees.

Gifts from Prohibited SourcesGifts from Prohibited SourcesAn example of the “$20 Exception”

In CY 2005 you worked a lot with BigCo. Earlier in the year, you accepted a lunch worth $10 from BigCo Employee A, a dinner worth $18 from BigCo Employee B, and a t-shirt worth $17 from BigCo Employee C. Now you receive a glass paperweight from BigCo worth $19 (retail). May you accept it? No. A, B, and C’s gifts already total $45; the $19 gift would put you over your CY2005 limit ($50) for gifts from BigCo.

And don’t forget -- each individual gift must be worth less than $20 per occasion (that’s retail value, not the wholesale price BigCo paid for its bulk order of 10,000 glass paperweights to give to all its “special” friends and customers…).

Gifts from Relatives and Friends Gifts from Relatives and Friends You may accept gifts from relatives and friends, regardless

of value [or taste -- can’t help you with the awful neckties, gaudy jewelry, and stale fruitcakes].

But be careful about how you define “friend.” A person who is first and foremost a business associate, and whose primary dealings with you are on matters related to postal business, is considered a business associate under the gifts rules even if you consider that person to also be a friend.

Ethics Tip: If you have to ask “why did this person give ME a gift?” – and wonder if you are expected to reciprocate – the gift was probably not based on a personal friendship.

More about Gifts from “Friends” More about Gifts from “Friends” If a person is a personal friend from whom you may accept gifts without

limitation, you should be able to answer “yes” to the following questions: Did the friendship pre-date your postal employment, or the person’s

dealings with you at the Postal Service? Do you and your family socialize away from work, in non-business

settings, with this person and his/her family? Are you exchanging gifts of comparable value? Did the person pay for the gift with personal, rather than business,

funds? If the gift was purchased with a company credit card, or was accompanied by a greeting card bearing the imprint of the person’s employer, it implies that the motivation behind the gift was not entirely personal.

Gifts Based on Gifts Based on Outside Business or Employment Outside Business or Employment

RelationshipsRelationships

Gifts Based on Gifts Based on Outside Business or Employment Outside Business or Employment

RelationshipsRelationships

You may accept gifts given as a result of your spouse’s or your own outside (non-postal) business or employment activities, as long as the gifts were not offered or enhanced because of your postal position. [A gift is “enhanced” if it is significantly nicer than the gifts the business is offering to others.]

Gifts Based on Gifts Based on Outside Business or Employment Outside Business or Employment

Relationships Relationships (cont’d)(cont’d)

Gifts Based on Gifts Based on Outside Business or Employment Outside Business or Employment

Relationships Relationships (cont’d)(cont’d) For example: Your spouse’s company

traditionally gives all its managers (but not their spouses) a free trip to Hawaii as a holiday “bonus.” This year, the company specifically offers to pay for you to accompany your spouse, but no other spouses are invited. You need to question such “special treatment.” If the company considered your postal position in making this unique offer, you can’t accept it. On the other hand, if it turns out that ALL company

spouses are invited this year… ALOHA!

Gifts Between Employees Gifts Between Employees Generally, you may NOT accept gifts from a

subordinate or from someone who receives less pay…UNLESS you and the giver are personal friends, and are not in a superior-subordinate relationship.

The rules about gift-giving between employees restrict what you may accept from subordinate employees, and from those who earn less than you do. These rules do not restrict gift-giving done between peers (manager to manager, clerk to clerk, support staff to support staff, etc.), or restrict your ability to give gifts to those who report to you or earn less than you do.

Gifts Between EmployeesGifts Between EmployeesGifts Between EmployeesGifts Between Employees However, there are some exceptions to the rule that

says you can’t accept gifts from subordinates:

1) A supervisor may accept a gift from an individual staff member, or a group of staff members, if the gift has a market value of $10 or less, and is not cash;

2) Co-workers at all levels may share food and refreshments in the office, provided that employee participation and contributions (monetary or other) are purely voluntary, and

3) If a supervisor hosts a gathering at her residence, she may accept -- from any staff member who attends -- customary hospitality gifts (such as flowers, beverages or food items); these gifts are not subject to the $10 limit per gift.

More Gifts Between Employees More Gifts Between Employees

Under these rules, holidays are considered “regularly-occurring occasions,” as are birthdays, Bosses Day, anniversaries, etc. On or in connection with these occasions, the $10 limit applies.

More Gifts Between Employees More Gifts Between Employees But different rules apply for “special infrequent occasions” (non-recurring events such as births or adoptions, weddings, illnesses, and retirements). On these occasions, a supervisor may accept, from an employee or group of employees, a gift that is appropriate to the occasion, even if it’s valued at more than $10.

On special infrequent occasions, employees may collect voluntary contributions to purchase a group gift, or have an office celebration in honor of the non-recurring event, or both. No one may be pressured or required to participate, and the amount of an individual’s contribution must be entirely up to him or her.

Even MORE Gifts Between EmployeesEven MORE Gifts Between EmployeesEven MORE Gifts Between EmployeesEven MORE Gifts Between Employees

Holidays are considered to be regularly-occurring occasions. You may only accept a holiday gift from a subordinate, or group of subordinates, if the gift has a market value of $10 or less (market value = retail value). Regardless of the amount of each individual contribution, a holiday gift item from a group of subordinates must be worth $10 or less, or it can’t be accepted.

Example: Even if $46 is collected from 10 employees, only $10 can be spent on a gift for the boss. The remaining amount can be put toward buying refreshments for a holiday gathering for everyone in the office.

Party ParticularsParty Particulars This time of year, postal

employees often receive invitations from vendors, associations, business partners, and others to attend -- in their official postal capacity -- parties, receptions, or similar events, at no charge.

Party ParticularsParty ParticularsYou may attend such an event, IF:

(1) it is widely-attended, meaning a large number of guests (generally, 100 or more) are expected, from a variety of businesses, agencies, and organizations; AND

(2) your attendance will advance the Postal Service’s business interests, AND

(3) you seek and obtain a determination from a postal ethics official that the Postal Service’s interest in your attendance outweighs any concern that acceptance of the “gift” of free attendance could appear to influence you in the performance of your duties.

Party ParticularsParty Particulars You must get the “determination of agency interest”

in writing, before the event, from an ethics official. If many postal employees were invited, a “blanket” determination may already have been issued to permit all invited postal employees to attend.

And, if the market value of the “gift” of free attendance that you have accepted is more than $305, you will need to report it on your next financial disclosure report.

Party ParticularsParty ParticularsA quick reference guide

for party-going postal employees

1. Office Parties: Employees and supervisors may share food and

refreshments in the office. If the office party is held at a restaurant, or the office party will be catered, the amount to be contributed by each employee who wishes to participate can be specified based upon a per-person cost. Otherwise, participation in and monetary donations for the party must be strictly voluntary.

Party ParticularsParty Particulars A quick reference guide (cont’d)

2. Parties at Someone’s Home: Hospitality extended to employees at the personal residence of a co-worker, supervisor, or subordinate is permissible. A superior may accept customary “host/hostess” gifts from his subordinates when he is hosting (no $10 limit).

3. Spouse’s Office Party: It is always okay to attend your spouse’s holiday office party in your personal capacity. Regrettably, even the Standards of Ethical Conduct cannot save you

from this annual torture (we feel your pain).

FundraisingFundraising

During the holidays, you may be asked outside the office to give or participate in various fundraising projects. You certainly may contribute or participate in your personal capacity, but postal employees may rarely, if ever, participate in fundraising in an “official” capacity.

ALL fundraising must be done outside the office, and employees may not use their titles, positions, or authority to further fundraising efforts.

You may not conduct fundraising (except CFC) in the workplace, or solicit monetary contributions from subordinates or prohibited sources.

More on FundraisingMore on FundraisingMore on FundraisingMore on FundraisingThe only means through which postal employees may be solicited for monetary donations in the workplace is the Combined Federal Campaign (CFC).

Workplace collections from employees of non-monetary donations, such as food, clothing and toys, is permitted by federal regulations. However, the collection of these items on postal premises must be officially sponsored by an authorized postal official at the facility, in accordance with Postal Operations Manual provisions and/or the Community Service and Activities Policy.

Collections from customers of food, clothing, and toys in POSTAL LOBBIES is not permitted. For more information, contact the Ethics Helpline (202-268-6346).

Requesting USPS ContributionsRequesting USPS ContributionsRequesting USPS ContributionsRequesting USPS Contributions

During the holiday season and at other times during the year, employees occasionally seek contributions of money and/or resources from the Postal Service itself for charitable and community causes.This type of request must be made by the interested employee in accordance with the Postal Service’s Community Service and Activities Policy, which can be found in Section 333.7 of the Administrative Support Manual (ASM).

For further information...For further information...For further information...For further information...about gifts and other ethics topics, please contact a headquarters ethics advisor, or your Field Law Office (contact information is on the Postal Blue intranet site: click on “General Counsel,” then “Ethics Advisors”).

Ethics Helpline:Ethics Helpline: (202) 268-6346(202) 268-6346

Postal email address: Postal email address: “Ethics Help”“Ethics Help”

Internet address: Internet address: ethics.help@usps.govBest Wishes for a Safe, Happy, Healthy Holiday Best Wishes for a Safe, Happy, Healthy Holiday

SeasonSeasonFrom All of Us in the HQ Ethics Office:From All of Us in the HQ Ethics Office:

Wendy HockingWendy Hocking, Chief, Chief Counsel, Ethics & Federal Counsel, Ethics & Federal RequirementsRequirements

Denise GillisDenise Gillis,, Janet Naughton, Janet Naughton, & & Kate RittnerKate Rittner, Ethics , Ethics AttorneysAttorneys PPeggy Hattoneggy Hatton, Administrative Assistant, Administrative Assistant