Supplemental Standards of Ethical Conduct for Employees of the Equal Employment Opportunity Commission

SUMMARY: The Equal Employment Opportunity Commission, with the

concurrence of the Office of Government Ethics (OGE), is issuing a

regulation for employees of EEOC that supplements the Standards of

Ethical Conduct for Employees of the Executive Branch issued by OGE.

The EEOC is also repealing its existing agency standards of conduct

regulations that have been superseded by OGE's Standards of Ethical

Conduct, OGE's financial disclosure regulation and this interim rule.

DATES: This rule is effective on February 26, 1996. Written comments on

the interim rule must be received on or before April 26, 1996.

ADDRESSES: Comments should be submitted to the Office of the Executive

Secretariat, Equal Employment Opportunity Commission, 1801 L Street,

NW., Washington, DC 20507. Copies of comments submitted by the public

will be available for review at the Commission's Library, room 6502,

1801 L Street, NW., Washington, DC between the hours of 9:30 a.m. and

5:00 p.m.

FOR FURTHER INFORMATION CONTACT:

Nicholas M. Inzeo, Associate Legal Counsel, Thomas J. Schlageter,

Assistant Legal Counsel, or Kathleen Oram, Senior Attorney, at (202)

663-4669 or TDD (202) 663-7026. This notice is also available in the

following formats: large print, braille, audio tape and electronic file

on computer disk. Requests for this notice in an alternative format

should be made to EEOC's Publications Center at 1-800-669-3362.

SUPPLEMENTARY INFORMATION:

I. Background

On August 7, 1992, the Office of Government Ethics published the

Standards of Ethical Conduct for Employees of the Executive Branch

(Standards) for codification at 5 CFR part 2635. See 57 FR 35006-35067,

as corrected at 57 FR 48557 and 57 FR 52583 with an additional grace

period extension at 59 FR 4779-4780. The Standards, effective February

3, 1993, set uniform ethical conduct standards applicable to all

executive branch personnel.

Section 2635.105 of the uniform Standards authorizes agencies, with

the concurrence of OGE, to publish agency-specific supplemental

regulations that are necessary to properly implement their respective

ethics programs. The Commission, with OGE's concurrence, has determined

that the following interim supplemental rule is necessary for

successful implementation of its ethics program.

II. Analysis of the Regulations

Section 7201.101 General

Section 7201.101 explains that the regulations apply to all

employees of the EEOC, including members of the Commission and the

General Counsel, and that they supplement the OGE Standards.

Section 7201.102 Prohibited Outside Employment

5 CFR 2635.802 provides that an employee shall not engage in

outside employment if it is prohibited by agency supplemental

regulation. The Commission is issuing Sec. 7201.102 as a supplemental

regulation. This section details three categories of prohibited outside

employment for EEOC employees. First, the section prohibits EEOC

employees from engaging in any outside employment with persons

currently and substantially affected by the employee's performance of

his or her official duties because the person is a party or

representative of a party to a particular matter involving specific

parties. This provision prohibits employees from working for a charging

party, respondent, or attorney representing either. Second, the section

prohibits EEOC employees from receiving any compensation for

representational services or the rendering of advice or analysis

regarding any equal employment law or its application. Finally, the

section prohibits EEOC employees from engaging in outside employment

involving any particular matter pending at EEOC or any equal employment

opportunity case in which EEOC or the Federal government is a party.

This final prohibition is not intended to prevent EEOC employees from

providing behind-the-scenes assistance (e.g., conducting legal

research, drafting documents, giving advice or other non-advocacy work)

to immediate family members in matters pending at EEOC or any equal

employment opportunity case in which EEOC or the Federal government is

a party. The Commission has determined that these three prohibitions,

which are similar to prohibitions that have applied to EEOC employees

under superseded 29 CFR 1600.735-204, will help to ensure that

reasonable persons will not questions the impartiality and objectivity

of EEOC's employees.

While the second and third prohibitions of this section do no apply

to special Government employees, the prior approval section discussed

below does apply to them. This acknowledges the transitory or part-time

nature of the service special Government employees provide EEOC, but

also enables EEOC to carefully review all outside employment interests

of special Government employees on a case-by-case basis to ensure that

violations of applicable statutes and regulations do not occur.

Section 7201.103 Prior Approval for Outside Employment

Under 5 CFR 2635.803, agencies may, by supplemental regulation,

require employees to obtain prior approval before engaging in outside

employment or activities. Under superseded 29 CFR 1600.735-204, the

Commission has had a requirement for prior approval of compensated and

other outside employment activities. Because this requirement has

helped to ensure that employees' outside activities conform to

[[Page 7066]]

applicable statutes and regulations, the Commission will continue to

require prior approval. Section 7201.103 provides that an EEOC

employee, including a special Government employee, must obtain advance

written approval from his or her Deputy Ethics Counselor or designee

before engaging in any outside employment. In addition to that

approval, employees must also obtain prior written approval from the

Designated Agency Ethics Official or designee to engage in compensated

outside employment, the uncompensated practice of law or uncompensated

outside employment that involves representational services or the

rendering of advice or analysis regarding any equal employment law, or

to serve as an officer or director of an organization whose activities

are devoted substantially to equal employment opportunity matters.

``Employment'' is broadly defined in Sec. 7201.103(d) to cover any

form of non-Federal employment or business relationship involving the

provision of personal services, including writing when done under an

arrangement with another person for production or publication of the

written product. It does not, however, include participation in the

activities of nonprofit charitable, religious, professional, social,

fraternal, educational, recreational, public service or civic

organizations, unless such activities involve the provision of

professional services or advice, are for compensation other than

reimbursement of expenses, or the organization's activities are devoted

substantially to matters relating to equal employment law and the

employee will serve as officer or director of the organization.

Section 7201.103(c) provides that approval will not be granted if

the outside employment is expected to involve conduct inconsistent with

or prohibited by any statute or federal regulation, including 5 CFR

part 2635 and these supplemental regulations.

III. Repeal and Redesignation of Portions of the EEOC Conduct

Regulations and Related Modifications

The Commission is replacing its existing standards of conduct

regulations at 29 CFR part 1600 and replacing them with a cross-

reference to 5 CFR parts 2634 and 2635 and to the supplemental

regulations at 5 CFR part 7201 adopted by this interim rule. With the

exception of subpart E and the material that was preserved pending the

issuance of this interim rule by the notes following 5 CFR 2635.403(a)

and 2635.803, part 1600 was superseded by OGE's two executive branch-

wide regulations, the Standards of Ethical Conduct for Employees of the

Executive Branch, 5 CFR part 2635, and Financial Disclosure, Qualified

Trusts, and Certificates of Divestiture For Executive Branch Employees,

5 CFR part 2634. See 57 FR 11800-1130, as amended at 57 FR 21854-21855

and 57 FR 62605. EEOC is redesignating subpart E of part 1600,

Procedures for the Collection of Debts by Salary Offset, as subpart A

of 29 CFR part 1650.

IV. Matters of Regulatory Procedure

The Commission has determined that these rules relate solely to

agency organization, procedure and practice. In addition, similar rules

have been applicable to Commission employees under EEOC's superseded

standards of conduct contained at 29 CFR part 1600. Therefore, the

requirements of the Administrative Procedure Act are not applicable.

EEOC is publishing its supplemental ethics regulation as an interim

rule to effect a smooth transition from its standards of conduct to

OGE's Government-wide standards of conduct regulation.

In promulgating this interim rule, the Commission has adhered to

the regulatory philosophy and the applicable principles of regulation

set forth in section 1 of Executive Order 12866, Regulatory Planning

and Review. This regulation has not been reviewed by the Office of

Management and Budget under that Executive order as it deals with

agency organization, management, and personnel matters and is not, in

any event, deemed ``significant'' thereunder. As required by the

Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified

that this interim rule will not have a significant impact on small

business entities. In addition, the Commission has determined that this

interim rule does not impose any information collection requirements as

defined by the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.

List of Subjects

5 CFR Part 7201

Conflict of interests, Government employees.

29 CFR Part 1600

Conflict of interests, Government employees.

29 CFR Part 1650

Debt collection.

Dated at Washington, DC, this 8th day of February 1996.

For the Equal Employment Opportunity Commission.

Gilbert F. Casellas,

Chairman.

Approved: February 16, 1996.

Stephen D. Potts,

Director, Office of Government Ethics.

For the reasons set forth in the preamble, the Equal Employment

Opportunity Commission, with the concurrence of the Office of

Government Ethics, is amending title 5 of the Code of Federal

Regulations and title 29, chapter XIV, of the Code of Federal

Regulations as follows:

TITLE 5--[AMENDED]

1. A new chapter LXII, consisting of part 7201, is added to Title 5

of the Code of Federal Regulations to read as follows:

5 CFR Chapter LXII--Equal Employment Opportunity Commission

PART 7201--SUPPLEMENTAL STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES

OF THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Sec.

7201.101 General.

7201.102 Prohibited outside employment.

7201.103 Prior approval for outside employment.

Authority: 5 U.S.C. 7301; 5 U.S.C. App. (Ethics in Government

Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as

modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306; 5

CFR 2635.105, 2635.403(a), 2635.802 and 2635.803.

Sec. 7201.101 General.

In accordance with 5 CFR 2635.105, the regulations in this part

apply to all employees of the Equal Employment Opportunity Commission

(EEOC), including members of the Commission and the General Counsel,

and supplement the Standards of Ethical Conduct for Employees of the

Executive Branch contained in 5 CFR part 2635.

Sec. 7201.102 Prohibited outside employment.

(a) No employee of the Equal Employment Opportunity Commission may

engage in outside employment with a person who is currently and

substantially affected by the employee's performance of his or her

official duties because the person is a party or representative of a

party to a particular matter involving specific parties.

(b) No employee of the Equal Employment Opportunity Commission,

other than a special Government employee, may receive compensation for

representational services, or the rendering of advice or analysis,

[[Page 7067]]

regarding any equal employment law or its application.

(c) No employee of the Equal Employment Opportunity Commission,

other than a special Government employee, may engage in outside

employment involving a particular matter pending at EEOC or an equal

employment opportunity matter in which EEOC or the Federal Government

is a party. An employee may, however, provide behind-the-scenes

assistance to immediate family members in matters pending at EEOC or

equal employment opportunity matters in which EEOC or the Federal

government is a party.

Sec. 7201.103 Prior approval for outside employment.

(a) Before engaging in any outside employment, with or without

compensation, an employee of the Equal Employment Opportunity

Commission must obtain written approval from his or her Deputy Ethics

Counselor or designee.

(b) In addition to approval under paragraph (a) of this section, an

employee must obtain prior written approval from the Designated Agency

Ethics Official or designee to engage in:

(1) Compensated outside employment;

(2) The uncompensated practice of law; or

(3) Uncompensated outside employment that involves representation

or the rendering of advice or analysis regarding any equal employment

law, or serving as an officer or director of an organization whose

activities are devoted substantially to equal employment opportunity

matters.

(c) Approval will not be granted if the outside employment is

expected to involve conduct inconsistent with or prohibited by a

statute or Federal regulation, including 5 CFR part 2635 and this part.

(d) For purposes of this section, ``employment'' means any form of

non-Federal employment or business relationship involving the provision

of personal services by the employee. It includes, but is not limited

to personal services as an officer, director, employee, agent,

attorney, consultant, contractor, general partner, trustee, teacher or

speaker. It includes writing when done under an arrangement with

another person for production or publication of the written product. It

does not, however, include participation in the activities of a

nonprofit charitable, religious, professional, social, fraternal,

educational, recreational, public service or civic organization unless:

(1) The employee's participation involves the provision of

professional services or advice;

(2) The employee will receive compensation other than reimbursement

of expenses; or

(3) The organization's activities are devoted substantially to

matters relating to equal employment law and the employee will serve as

officer or director of the organization.

29 CFR CHAPTER XIV--EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

PART 1600--[AMENDED]

2. The authority citation for part 1600 is revised to read as

follows:

Authority: 5 U.S.C. 7301.

3. Subparts A through D, consisting of Secs. 1600.735-101 through

1600.735-106, 1600.735-201 through 1600.735-206, 1600.735-301, and

1600.735-401 through 1600.735-406, respectively, and appendix A to part

1600 are removed.

4. A new Sec. 1600.101 is added to read as follows:

Sec. 1600.101 Cross-reference to employee ethical conduct standards

and financial disclosure regulations.

Employees of the Equal Employment Opportunity Commission (EEOC) are

subject to the executive branch-wide Standards of Ethical Conduct at 5

CFR part 2635, the EEOC regulation at 5 CFR part 7201, which

supplements the executive branch-wide standards, and the executive

branch-wide financial disclosure regulations at 5 CFR part 2634.

PART 1650--[AMENDED]

1. The authority citation for part 1650 is revised to read as

follows:

Authority: 5 U.S.C. 5514; 31 U.S.C. 3720A; 5 CFR 550.1101.

2. Subpart E of part 1600 is redesignated as new subpart A in part

1650 as indicated in the table below:

------------------------------------------------------------------------

Old section New section

------------------------------------------------------------------------

1600.735-501............................................... 1650.101

1600.735-502............................................... 1650.102

1600.735-503............................................... 1650.103

1600.735-504............................................... 1650.104

1600.735-505............................................... 1650.105

1600.735-506............................................... 1650.106

1600.735-507............................................... 1650.107

1600.735-508............................................... 1650.108

1600.735-509............................................... 1650.109

1600.735-510............................................... 1650.110

1600.735-511............................................... 1650.111

1600.735-512............................................... 1650.112

1600.735-513............................................... 1650.113

1600.735-514............................................... 1650.114

1600.735-515............................................... 1650.115

1600.735-516............................................... 1650.116

1600.735-517............................................... 1650.117

1600.735-518............................................... 1650.118

1600.735-519............................................... 1650.119

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[FR Doc. 96-4115 Filed 2-23-96; 8:45 am]

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