Unlocking Opportunities: Can a Government Employee Do Business?
Government employees lead busy lives with demanding jobs serving the public. But like anyone, they may be interested in exploring business opportunities outside of their day jobs. So a significant inquiry emerges – could an administration representative at any point begin and work a personal business while utilized by the public authority? The response is more nuanced than a straightforward yes or no. Guidelines change in view of variables like the kind of business, the worker’s situation, and the approaches of the particular government organization. With cautious thought of the guidelines, limitations, and dangers, an administration specialist can frequently track down a proper road for a business venture.
Rules and Regulations
There are regulations at both state and federal levels that address secondary employment for government workers. The intention behind many of these rules is to prevent conflicts of interest created when an employee has competing loyalties. Basically, employees are expected to ensure their external business doesn’t undermine or interfere with their government job. Rules typically get stricter the higher up an employee is within an agency. Frontline staff usually have more flexibility than senior management.
Federal Employees
For federal employees, regulations state they cannot:
• Use government property or resources to benefit their outside business
• Use official work time to work on outside enterprises
• Use insider information gathered through their government job to assist their business
• Accept payments that could be seen as influencing the performance of their government duties
Federal workers must disclose and seek approval for certain types of secondary employment. Policy dictates this should be evaluated on a case-by-case basis. Some agencies prohibit secondary employment altogether if determined incompatible with an employee’s official role.
State and Local Employees
Rules for state and municipal employees are set by respective government entities. Many states and cities have adopted similar conflict of interest rules as the federal government. This usually includes seeking supervisor approval and not using official capacities directly or indirectly to boost outside business. Some common prohibited situations:
• Public school teachers selling educational materials/services to their own schools
• Procurement officers consulting for companies that bid on government contracts
• Any side business that infringes on the employee’s ability to perform their regular duties
In some states, governors and other high-ranking officials are barred from earning any outside income while serving in office.
Overall, most government entities recognize that public sector pay is rarely going to compete with the private sector. So they tend to allow secondary employment, with appropriate precautions against conflicts of interest.
Types of Business Pursuits
Government employees have started all types of businesses, from multi-level marketing to real estate investment firms. Agencies are mainly concerned with avoiding direct overlap with the employee’s public duties. With that in mind, here are some typical examples of compatible secondary enterprises:
• Consulting in an unrelated field
• Selling handmade crafts or artwork
• Managing rental properties
• Operating an eCommerce store selling used or handmade goods
Higher-earning entrepreneurial pursuits like law firms, medical practices, or large retailers may raise more concerns. While not always prohibited, senior staff would need to closely evaluate risks of conflicting priorities.
Obviously, any business blatantly in conflict with an employee’s government duties would be off the table. For example, a regulator overseeing loans could likely not also run a payday lending company.
Key Factors to Consider
Government professionals looking to start a business should carefully weigh the following factors:
• Familiarize yourself with all relevant regulations and disclose to supervisors. Seek documented approval where required.
• Assess how much time/resources your business may require. Ensure your government job remains priority #1.
• Avoid any real or perceived overlaps, partnerships, or other relationships between your business and public employer.
• Be prepared to fully divest or dissolve your business if a conflict emerges or your government employer requires it.
• Consult early on with ethics officers if you have concerns about compliance or conflicts of interest.
By keeping close tabs on these considerations, public sector employees can often find ways to pursue entrepreneurial ventures without running afoul of rules or compromising their duty to taxpayers.
Common Concerns
Some frequent worries government employees have around outside business, and how to address them:
| Concern | Solution |
| Using work facilities or equipment | Never appropriate. Conduct all business using personal devices/networks after work hours. |
| Time management conflicts | Set firm boundaries on work/business time. Be disciplined leaving business matters until off the clock. |
| Accessing insider data | Carefully follow regulations around using non-public data. Consult ethics office with any questions. |
| Appearing to exploit government ties | Separate marketing completely from employer, downplaying any government connections. |
| Losing impartiality | Withdraw from any decisions even remotely involving your outside business. Be vigilant about staying objective. |
| Getting fired over conflicts | Disclose concerns early so action can be taken if dire conflicts arise. But most issues can be reconciled. |
As shown above, there are options to overcome these obstacles. With some creative thinking, diligence, and care, many enterprising government professionals can take the leap into side businesses without jeopardizing their jobs.
Additional Rules for Military Members
Military personnel have additional limitations and reporting requirements, enforced by the
Uniform Code of Military Justice:
- Outside employment must not negatively impact readiness, unit cohesion, or the member’s grade/rank
- Unit commanders must review and approve secondary sources of income
- Strict rules govern doing business with any part of the defense establishment
- Additional ethics rules may be imposed for officers and senior NCOs
Junior enlisted personnel generally have an easier time getting approval for basic side businesses. Higher ranking officers/NCOs face much closer scrutiny of any potential conflicts of interest.
Frequently Asked Questions
Here are answers to some common questions government employees have about doing business:
Q. Can I sell handmade crafts on Etsy or a similar marketplace?
Ans: Yes, typically. Small scale art/craft businesses are usually fine as long as you create and sell items on your own time without using employer resources.
Q. Can I be required to shut down my outside business?
Ans: Possibly, if serious conflicts emerge that call your impartiality into question. But agencies prefer avoidance over shutdowns.
Q. Do I have to report/file paperwork on my side income?
Ans: Usually. Read your agency’s rules to determine exact disclosure and approval requirements based on your job and business type.
Q. Can I get fired over my business if I didn’t realize it caused a conflict?
Ans: Unlikely, if you make good faith efforts at transparency and compliance. Intentionally hiding conflicts is the real issue.
Q. Do rules prohibit any specific kinds of businesses?
Ans: Some agencies blacklist certain fields like law, real estate, accounting and others prone to conflicts. But usually case determinations.
Can my business serve other government entities?
Ans: Rarely. Most policies prohibit this type of direct business-government overlap.
Q. Do I have to prove my business is not infringing on my duties?
Ans: The default assumption is typically that secondary employment won’t interfere. But be prepared to alter business if issues emerge.
Q. What happens if I leave my government job – can I continue the business?
Ans: Yes, any conflict concerns evaporate once you are entirely separated from your public employer.
Q. Do these rules seem restrictive and unfair?
Ans: The intention is not to squash entrepreneurship, but to maintain public trust in the impartiality of institutions. But following rules closely can allow compatible business ownership.
Conclusion
Operating a business while working for the government can certainly be done. But it requires carefully adhering to disclosure and conflict avoidance policies. Additionally, employees must set clear boundaries between their business and official roles. With due diligence given to rules and transparency, many government professionals can ethically achieve their dream of small business ownership or supplementary income from entrepreneurial pursuits.
The key is approaching this goal as a privilege to fit reasonably within full devotion to serving the public trust, not sacrificing those official duties for personal profit. If that commitment is kept, the potential for rewarding dual careers remains open to ambitious and enterprising civil servants.
Meta description: Government workers can often start and run side businesses by following regulations regarding conflicts of interest, disclosure, and outside employment approval processes.
