February 8, 2006
MEMORANDUM FOR ALL MEMBERS, OFFICERS AND EMPLOYEES
FROM: Committee on Standards of Official Conduct
s/ Doc
s/ Alan B. Mollohan, Ranking Minority Member
SUBJECT: The 2006 Outside Earned Income Limit and the Salary Levels at which the Outside Earned Income and Employment Limits, the Financial Disclosure Requirement, and the Post-Employment Restrictions Apply in 2006
THE OUTSIDE EARNED INCOME LIMITATION AND
THE LIMITATIONS ON OUTSIDE EMPLOYMENT
By statute and House rule, the amount of outside earned income that Members and senior staff (as defined below) may have in any calendar year is limited. 5 U.S.C. app. 4 § 501(a)(1); House Rule 25, cl. 1(a)(1). The amount of the limit for any year is 15% of the rate of pay for Level II of the Executive Schedule in effect on January 1 of the year. The rate of pay for Executive Level II in 2006 is $165,200. Accordingly, the outside earned income limit for calendar year 2006 is $24,780.
In addition to House Members, the limit applies to House officers and employees who are paid at a rate equal to or greater than 120% of the minimum pay for GS-15 of the general schedule for more than 90 days in a calendar year. The GS-15, step 1 rate of basic pay is now $91,507 (locality pay is not considered in making this determination). Accordingly, the outside earned income limit applies to House officers and employees paid at or above the rate of $109,808 in 2006.
Under clauses 1-4 of House Rule 25 and related provisions of
statutory law, Members, as well as officers and employees paid at or above this
threshold rate, are also subject to a number of specific limitations on their
outside employment. Information on these
limitations is provided in the House
Ethics Manual (on pages 101-11) and a Committee advisory memorandum of
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FINANCIAL DISCLOSURE
In addition to Members, the requirement to file a Financial Disclosure Statement applies to House officers and employees who are paid at a rate equal to or greater than 120% of the minimum pay for GS-15 for at least 60 days at any time during a year. 5 U.S.C. app. 4 § 109(13). As noted above, 120% of GS-15 is now $109,808, and thus House officers and employees who are paid at or above that rate of pay for at least 60 days during 2006 must file a financial disclosure statement.
Please note that the requirement to file a Financial Disclosure Statement
covering calendar year 2005 applies to officers and employees who were paid at
an annual rate of $107,550 for at least 60 days in 2005. The annual Financial
Disclosure Statements for 2005 are due on
POST-EMPLOYMENT RESTRICTIONS
Members and officers of the House, as well as certain House employees, are subject to post-employment restrictions on lobbying. 18 U.S.C. § 207. A former employee of a Member, committee, or leadership office is covered if, for at least 60 days during the one-year period preceding termination of employment, he or she was paid at a rate equal to or greater than 75% of the basic rate of pay for Members at the time of termination.
The basic rate of pay for Members is now $165,200. Therefore, the post-employment threshold for
employees who depart from a job in a Member, committee, or leadership office during
2006 is $123,900. (Employees of other House or legislative
branch offices should contact the Committee for specific guidance on salary
thresholds applicable to them.) Information
on the post-employment restrictions applicable to Members and staff is available
in a pair of Standards Committee advisory memoranda dated
* * * * *
CALENDAR YEAR 2006
OUTSIDE EARNED INCOME CAP . . . . . . . . . . . . . . . $ 24,780
OUTSIDE EARNED INCOME AND
OUTSIDE EMPLOYMENT THRESHOLD . . . . . . . . . . . $109,808
FINANCIAL DISCLOSURE THRESHOLD . . . . . . . . . . $109,808
POST-EMPLOYMENT THRESHOLD . . . . . . . . . . . . . $123,900