February 8, 2006

 

MEMORANDUM FOR ALL MEMBERS, OFFICERS AND EMPLOYEES

 

FROM:           Committee on Standards of Official Conduct

                           s/ Doc Hastings, Chairman

                           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 February 23, 1998, both of which are available on the Standards Committee Web site (www.house.gov/ethics).  The Committee’s Office of Advice and Education (extension 5-7103) can provide further explanation.

 

  OVER  

 

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 Monday, May 15, 2006 for those individuals who continue to be officers or employees of the House on that date.

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 November 18, 2004, copies of which are available on the Committee Web site.

 

 

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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