§10.02
Outside Employment and Employee Business Activities

Responsible Manager


Rev. 09/07

  1. General Policy
  2. Review-and-Approval Principles and Time Limits
    1. Principles
    2. Time Limits
  3. Consulting and Other Short-term Employment
  4. Payments from Outside Organizations
  5. Teaching for the University of California
  6. Policy on Outside Professional Activities for University Officers and Designated Staff
  7. Ownership or Management Interest in Commercial Entities with Potential Economic or Technology Connections to the Laboratory
  8. Patent Agreements
  9. Disclosure and Reporting Requirements

Appendix I:  Table 10.02 (C) (Outside Employment, Consulting, and Scientific Advisory Board/Honorarium Matrix
Appendix II:  Table 10.02 (E) (Policy on Teaching for the University of California)

A. GENERAL POLICY

Employees may engage in consulting or other employment and business activities outside Laboratory hours and away from the Laboratory as long as such activities do not interfere with performance of their Laboratory duties or create a real or apparent conflict of interest. As set forth in Paragraphs (C) and (E) below, Laboratory management review and approval are required for:

If the employment is not in one of the categories listed above and is obviously unrelated to the Laboratory’s interests, it does not normally need to be reported or approved.  Examples include an outside job or business interest in ranching; retail sales; and music, art, or real estate sales.

All outside employment activities must be conducted without the use of Laboratory supplies, equipment, or facilities.  See also RPM §§2.05(I) (Integrity in Research), 2.23(I) (Privileged Information), and 11.39(A)(2) (Use of Property and Supplies). In addition, as stated above, no amount of time due to the Laboratory may be devoted to private purposes, and no outside employment may interfere with the performance of Laboratory duties. The policy in this section is based on federal and State laws and regulations, the DOE/UC Contract for management of LBNL, and University policy.

Policy concerning ownership or management interest in commercial entities with potential economic or technology connections to the Laboratory is covered in Paragraph (G), below.

B.  REVIEW-AND-APPROVAL PRINCIPLES AND TIME LIMITS

The following considerations are made in determining whether a real or apparent conflict of interest exists.

1.   Principles

  1. Avoidance of Unfair Competitive Advantage.  Does an employee’s consulting or other business activity outside the Laboratory influence decisions made at the Laboratory in such a way as to give unfair competitive advantage to the outside business organizations.  See RPM §2.23(I) (Privileged Information).

  2. Separation of Laboratory and Private Interests. Does an employee’s consulting or other outside business activity materially affect the Laboratory’s dealings with the outside business organization, or does the employee’s consulting or other activity substantially affect the environment of the economic/technological business sector in which the employee or a near relative has a financial interest as defined by the University of California Conflict of Interest Code. See RPM §2.23(F)(1) (Self-Disqualification) and §10.01 (Conflict of Interest — General).

  3. Protection of Information Not Yet in Public Domain.  Does an employee, acting as an independent consultant or as an employee of another organization, use information, skills, or knowledge that is material to current or proposed Laboratory research or development work and that is proprietary to the Laboratory and not yet in the public domain. See RPM §2.23(I) (Privileged Information).

  4. Noncompetition with Laboratory Projects.  Is an employee’s consulting or outside employment activity in competition with current or proposed Laboratory projects?

    Questions concerning potential conflicts of interest should be referred to the Laboratory Conflict of Interest (COI) Coordinator, the employee’s supervisor, or the Laboratory Counsel. 

2.  Time Limits

There is no specific time limit for an employee’s outside consulting or employment with an outside organization.  However, should the scope of work or the employment terms change, the employee must obtain a new approval from the cognizant immediate supervisor and division director or designee to continue in the outside business activity.

C.  CONSULTING AND OTHER SHORT-TERM EMPLOYMENT

Consulting and other short-term employment are normally permitted with the most organizations, including those doing business in a field in which the Laboratory does or has done research and the results have been reported and made public.  Work for another DOE contractor must be handled through a work-for-others agreement.  Also, consulting and nonteaching employment with a University of California branch is usually arranged through an intercampus work-for-others contract.

Proposed outside consulting or other temporary employment of a type described in Paragraph (A) (above) to be performed by Laboratory employees must be documented, reviewed, and approved by Laboratory management.  The information is summarized and transmitted to DOE by the Laboratory COI Coordinator.  The Laboratory must obtain concurrence from DOE in cases involving another DOE cost-type contractor or any other organization in the same or related energy field where the proposed work is to be performed by a Laboratory employee and involves, or may involve, any of the following:

When University of California faculty are associated with the Laboratory, they should provide Laboratory management with a copy of the annual report they prepare for their campus department, in accordance with the University’s Policy on Outside Professional Activities of Faculty Members. This report should be sent to a faculty member’s Berkeley Lab division director.

Appendix I: Table 10.02 (C) (Outside Employment, Consulting, and Scientific Advisory Board/Honorarium Matrix) describes the requirements for a variety of work categories and situations.  The Request to Engage in Outside Employment form is used to obtain most required approvals.  Instructions for completing this form are also available.  Approvals are obtained from the cognizant immediate supervisor and division director or designee.

D.  PAYMENTS FROM OUTSIDE ORGANIZATIONS

Employees are permitted to accept fees, gratuities, stipends, or honoraria from outside organizations if advance approval has been obtained as outlined in Paragraph (C), above.  Employees in positions designated by the University of California Conflict of Interest Code are termed “designated officials/designated employees” and may not accept an honorarium from any source if he or she would be required to report receipt of income or gifts from that source on a statement of economic interests.  See RPM §10.03 (Self-Disqualification and Conflict of Interest for Designated Officials).  Honorarium payments for one-time lectures do not require Laboratory approval.

E.  TEACHING FOR THE UNIVERSITY OF CALIFORNIA

University policy does not normally allow full-time employees to be paid by the University for dual employment in any additional position.  Exceptions for teaching at University of California institutions may be allowed, however, as noted in the following table.  For cases in which the teaching activity is part of a work-for-others (non-DOE) sponsored project administered by the Laboratory, no separate University paycheck is required.

Appendix II: Table 10.02 (E) (Policy on Teaching for the University of California) describes the various requirements concerning teaching at the University of California.

To obtain the required approvals, use the Request to Teach at University of California form available at the Human Resources Forms Web site.  Approval of the division director is required. The division sends a copy of the form to the Human Resources Center, which maintains the appropriate record.

F.   POLICY ON OUTSIDE PROFESSIONAL ACTIVITIES FOR UNIVERSITY OFFICERS AND DESIGNATED STAFF

Outside professional activities of staff members at the Laboratory Management level (see RPM §2.01(K)(3)) are subject to certain additional special provisions.

Permissible outside professional activities include, but are not limited to, service on state or national commissions, government agencies and boards, committees or advisory groups to other universities, organizations established to further the interests of higher education, not-for-profit organizations, and service on corporate boards of directors.

When it is consistent with DOE and Laboratory objectives and missions, service on behalf of national commissions, government agencies and boards, advisory groups to other universities, and other nonprofit organizations is encouraged. Subject to conditions established in University policy concerning receipt of honoraria and reimbursement for related travel expenses, such service may be undertaken during regular work time. It is particularly important to note that a person who is a “designated employee” under the University of California Conflict of Interest Code may have additional criteria to consider.

In the case of outside professional activities for which compensation is received, a Laboratory employee must use accrued vacation leave when participating during the regular work week, which is consistent with other personnel policy requirements.  For Laboratory members of the University Senior Management Group who hold an Academic Senate or other faculty title, outside professional activities are also subject to the time limits established in the University President’s Policy on Outside Employment of Faculty. Questions concerning the latter policy should be directed to the campus Academic Personnel Office.

When Berkeley Lab members of the University Senior Management Group are called on to serve in their official capacity on scientific advisory boards for DOE and DOE cost-type contractors, this service is considered to be part of the employee‘s regular assignment.  Although no honorarium may be received by employees for such service, the Laboratory may be reimbursed for such costs as travel and per diem.  If the service involves more than a few days per year, the Chief Financial Officer must be consulted.

The Human Resources Department has complete information concerning the necessary approval and reporting requirements pertaining to this policy.

G.  OWNERSHIP OR MANAGEMENT INTEREST IN COMMERCIAL ENTITIES WITH POTENTIAL ECONOMIC OR TECHNOLOGY CONNECTIONS TO THE LABORATORY

Employees who own or have an ownership interest of at least 10% in a commercial entity that has economic or technology connections with or seeks to have such connections with the Laboratory, or who have a management interest such as being a member of the Board of Directors in such a commercial entity, must report the interest to their division director. This requirement also extends to an employee’s near relatives and domestic partner.  The terms “near relative” and “domestic partner” are defined in University policy as parents, children, spouses, same or opposite sex domestic partners, brothers, or sisters, including in-laws and step-relatives in these relationships.

As a general rule, goods or services are not purchased from any Laboratory/University employee, near relative, or domestic partner because of the basic principles of separation of an employee’s Laboratory/University duties and his or her private interests. A second concern is the protection of the Laboratory/University and its employees from charges of favoritism in the acquisition of goods and services. If an employee’s Laboratory assignment is such that he or she might influence or take part in negotiations or transactions with an outside business, the employee must disqualify himself or herself from participating in those negotiations or transactions. See RPM §10.03 (Self-Disqualification and Conflict of Interest for Designated Officials)

Exceptions to the general prohibition against economic or technology connections with employee-connected firms may be made if the company is the sole source that can provide the goods or services.  Such cases must be approved by the Chief Financial Officer.  Additional information regarding the appropriate procedure is available from the Chief Financial Officer.

Business ownership or management interest as defined above must be reported on the Notification of Outside Business Ownership or Management Interest form.  Instructions for completing this form are also available.  The Office of Institution Programs receives copies of the form from the division and uses them to create an “Employee-Connected Commercial Entity” list, which is used by Procurement to implement the prohibition against doing business with employee-connected firms.

H.  PATENT AGREEMENTS

When a consulting or employment agreement containing a claim for invention and patent rights is offered to an employee, the outside organization must be advised, under the terms of the DOE/UC Contract for management of LBNL, that the agreement must include the following or equivalent language to obtain Laboratory approval:

“It is recognized that (1) Consultant is an employee of the University of California engaged in certain work conducted by the University at the Lawrence Berkeley National Laboratory under Contract ________________________ with the United States Department of Energy (DOE) and (2) the University has rights to patents and other intellectual property arising from Consultant’s services for that work.  This consulting agreement is subject to those rights notwithstanding any intellectual property obligations to contrary in this agreement.  Whenever any invention or discovery is solely or jointly made, conceived, or developed by Consultant under the Consulting Agreement, the Company must promptly furnish the University and DOE with sufficient information to timely determine whether the invention or discovery is within the purview of the patent agreement executed by Consultant with the University.”

The text of any proposed consulting or employment agreement must be reviewed and approved by Technology Transfer and Intellectual Property Management before execution of the agreement by the employee. Questions regarding inventions and patent articles in a proposed consulting agreement should also be referred to Technology Transfer and Intellectual Property Management. See also RPM §5.03 (Patents).

I.  DISCLOSURE AND REPORTING REQUIREMENTS

Employees engaged in outside business activity as defined in this chapter are required to disclose certain information to the Laboratory at the time of their request to engage in outside business activity and throughout their outside business association as changes occur.  These disclosures are necessary so the outside business activity can be reviewed for continued appropriateness and to satisfy certain contractual requirements.  The following information must be disclosed:

In addition, Laboratory employees are required to notify their division director and the Laboratory Conflict of Interest Coordinator whenever they are notified that they are the target of an investigation by a federal or state agency that has as its subject the improper use of information obtained or actions taken for personal gain by the employee in the course of his or her employment.

 

 


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