This document provides detailed guidance on the application of 18 U.S.C. §209, which prohibits federal employees from receiving salary or supplemental compensation from non-federal entities for work performed as part of their governmental duties, with specific attention to Department of Veterans Affairs (VA) research personnel. It outlines the two primary exceptions to this prohibition: the Without Compensation (WOC) exception, permitting compensation from a non-federal source when a VA employee's only VA appointment is WOC; and the State Treasury exception, which allows compensation when payments come directly from the treasury of a state, county, or municipality and is subject to OGC Ethics determination. The document clarifies the complex situations in which VA researchers—often holding dual appointments with universities—may or may not legally accept external grant salary support, particularly when their research is conducted using VA time or resources. It also provides the VA's interpretation of various application scenarios and suggests remedies to mitigate the restrictions posed by 18 U.S.C. §209, such as modifying employment effort allocations, site of research performance, or legislative solutions like pending provisions in the VIPER Act.
The guidance stresses the importance of proactive collaboration between VA research offices and ethics teams to ensure compliance while allowing continued access to research funding, emphasizing that grants need not be forfeited if managed according to the legal framework. It encourages systematic project reviews to identify potential conflicts and determine eligibility for exceptions, particularly when interacting with state versus private affiliates. The document also provides practical pathways for compliance, including the use of Memoranda of Understanding for salary reimbursements and stepwise instructions for local leadership. For additional clarity and support, contact points and resources, including FAQs and webinar archives, are provided to assist VA personnel in navigating the complex intersection of federal ethics law and research funding.
