[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR2635.804]

[Page 584-585]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER XVI--OFFICE OF GOVERNMENT ETHICS
 
PART 2635_STANDARDS OF ETHICAL CONDUCT FOR EMPLOYEES OF THE EXECUTIVE 
BRANCH--Table of Contents
 
                      Subpart H_Outside Activities
 
Sec. 2635.804  Outside earned income limitations applicable to certain 
Presidential appointees and other noncareer employees.

    (a) Presidential appointees to full-time noncareer positions. A 
Presidential appointee to a full-time noncareer position shall not 
receive any outside earned income for outside employment, or for any 
other outside activity, performed during that Presidential appointment. 
This limitation does not apply to any outside earned income received for 
outside employment, or for any other outside activity, carried out

[[Page 585]]

in satisfaction of the employee's obligation under a contract entered 
into prior to April 12, 1989.
    (b) Covered noncareer employees. Covered noncareer employees, as 
defined in Sec. 2636.303(a) of this chapter, may not, in any calendar 
year, receive outside earned income attributable to that calendar year 
which exceeds 15 percent of the annual rate of basic pay for level II of 
the Executive Schedule under 5 U.S.C. 5313, as in effect on January 1 of 
such calendar year. Employees should consult the regulations 
implementing this limitation, which are contained in Sec. Sec. 2636.301 
through 2636.304 of this chapter.

    Note: In addition to the 15 percent limitation on outside earned 
income, covered noncareer employees are prohibited from receiving any 
compensation for: practicing a profession which involves a fiduciary 
relationship; affiliating with or being employed by a firm or other 
entity which provides professional services involving a fiduciary 
relationship; serving as an officer or member of the board of any 
association, corporation or other entity; or teaching without prior 
approval. Implementing regulations are contained in Sec. Sec. 2636.305 
through 2636.307 of this chapter.

    (c) Definitions. For purposes of this section:
    (1) Outside earned income has the meaning set forth in Sec. 
2636.303(b) of this chapter, except that Sec. 2636.303(b)(8) shall not 
apply.
    (2) Presidential appointee to a full-time noncareer position means 
any employee who is appointed by the President to a full-time position 
described in 5 U.S.C. 5312 through 5317 or to a position that, by 
statute or as a matter of practice, is filled by Presidential 
appointment, other than:
    (i) A position filled under the authority of 3 U.S.C. 105 or 3 
U.S.C. 107(a) for which the rate of basic pay is less than that for GS-
9, step 1 of the General Schedule;
    (ii) A position, within a White House operating unit, that is 
designated as not normally subject to change as a result of a 
Presidential transition;
    (iii) A position within the uniformed services; or
    (iv) A position in which a member of the foreign service is serving 
that does not require advice and consent of the Senate.

    Example 1: A career Department of Justice employee who is detailed 
to a policy-making position in the White House Office that is ordinarily 
filled by a noncareer employee is not a Presidential appointee to a 
full-time noncareer position.
    Example 2: A Department of Energy employee appointed under Sec. 
213.3301 of this title to a Schedule C position is appointed by the 
agency and, thus, is not a Presidential appointee to a full-time 
noncareer position.