On January 28, 2025, the Office of Personnel Management (OPM) offered the majority of Federal Executive Branch Employees the option of a “deferred resignation program,” wherein the employee will not have to return to the office, if they agree to resign by September 30, 2025. Lacking, amongst many things, in that offer and the subsequent OPM Guidance Regarding the Deferred Resignation Program, is notice that the standards of ethical conduct for executive branch employees found at 5 CFR Part 2365 or any agency-specific supplemental standards of ethical conduct will still apply to those who accept the offer until the effective date of their resignation. Specifically, if you accept that offer, you need to understand that the ethics provisions regarding outside activities, most importantly those provisions regarding outside employment, will continue to apply to you while you remain on administrative leave through September 30, 2025.
For example, the Department of Housing and Urban Development’s (HUD) supplemental standards of ethical conduct prohibit HUD employees from accepting outside employment with a business related to real estate or manufactured housing, such as real estate brokerages, property insurance, architecture, engineering, or title search companies, as well as outside employment in the operation or management of investment properties. 5 C.F.R. §7501.105(a). Likewise, the additional rules for Internal Revenue Service (IRS) employees prohibit IRS
employees from any outside employment involving tax matters including accounting, bookkeeping, or tax preparation. 5 U.S.C. § 3101.106(b)(3)-(5). Further, many agency-specific supplemental standards require that you obtain prior written approval of outside employment and activities. See e.g., 5 CFR § 5301.103 (b) (“Supplemental Standards of Ethical Conduct for Employees of the National Science Foundation”); 5 CFR § 7601.102 (“Supplemental Standards of Ethical Conduct for Employees of the National Archives and Records
Administration”). Last, all employees of the executive branch are subject to 18 U.S.C. §§203 & 205, which prohibit Federal employees from representing any other person before the Federal government. These prohibitions are broad in nature and would prevent you from contacting any Federal government agency in order to sell a private sector company’s products or services.
Running afoul of these ethical standards during your deferred resignation may result in your removal, and not your “voluntary” resignation prior to September 30, 2025.
The legal information contained in this document is of a general nature and is subject to change; it is not meant to serve as legal advice in any particular situation. The law is in a constant state of change as Congress amends or passes new statutes, Federal agencies issue new regulations and courts issue new interpretations of the law. The Jeffrey Law Group, PLLC does not guarantee the accuracy of the legal information in this document. The Jeffrey Law Group, PLLC recommends you consult a licensed attorney of the firm who is knowledgeable about the area of law in question before you take action to address a legal matter.