[Code of Federal Regulations]
[Title 7, Volume 1]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1.501]

[Page 98-99]
 
                          TITLE 7--AGRICULTURE
 
PART 1_ADMINISTRATIVE REGULATIONS--Table of Contents
 
    Subpart N_Policy With Regard to Indemnification of Department of 
                          Agriculture Employees
 
Sec. 1.501  Policy on employee indemnification.

    Authority: 5 U.S.C. 301.

    Source: At 69 FR 28042, May 18, 2004, unless otherwise noted.


    (a) Indemnification, under the context of this section, shall be the 
policy whereby the Department of Agriculture compensates an employee for 
the legal consequences of conduct, taken within the scope of his or her 
employment, giving rise to a verdict, judgment, or other monetary award 
rendered against the employee.
    (b) The Department of Agriculture may indemnify a Department 
employee (which for the purposes of this regulation shall include a 
former employee) for any verdict, judgment, or other monetary award 
rendered against such employee, provided the Secretary or the 
Secretary's designee determines, in his or her discretion, that the 
conduct giving rise to such verdict, judgment, or award was taken within 
the scope of his or her employment with the Department, and such 
indemnification is in the interest of the United States.

[[Page 99]]

    (c) The Department of Agriculture may pay for the settlement or 
compromise of a personal damage claim against a Department employee by 
the payment of available funds, at any time, provided that the Secretary 
or the Secretary's designee determines, in his or her discretion, that 
the alleged conduct giving rise to the personal damage claim was taken 
within the scope of the employee's employment, and such settlement or 
compromise is in the interest of the United States.
    (d) Absent exceptional circumstances, as determined by the Secretary 
or his or her designee, the Department will not entertain a request to 
agree to indemnify or pay for a settlement of a personal damage claim 
before entry of an adverse judgment, verdict, or other monetary award.
    (e) When a Department employee becomes aware that an action has been 
filed against the employee in his or her individual capacity as a result 
of conduct taken within the scope of his or her employment, the employee 
should immediately notify his or her supervisor that such an action is 
pending. The supervisor shall promptly thereafter notify the Office of 
the General Counsel.
    (f) A Department employee may request indemnification to satisfy a 
verdict, judgment, or monetary award entered against the employee or to 
satisfy the requirements of a settlement proposal. The employee shall 
submit a written request, with appropriate documentation that includes a 
copy of the verdict, judgment, award or settlement proposal, as 
appropriate, to the head of his or her employing component, who shall 
thereupon submit it to the General Counsel, in a timely manner, a 
recommended disposition of the request. The Office of the General 
Counsel shall seek the views of the Department of Justice. The Office of 
the General Counsel shall forward the employee's request, the employing 
component's recommendation, and the General Counsel's recommendation, 
along with the time frame in which a decision is needed, to the 
Secretary or his or her designee for decision. The Secretary or his or 
her designee will decide promptly whether to indemnify or pay for a 
settlement of a personal damage claim.
    (g) Any payment under this section to indemnify a Department 
employee for a personal damage verdict, judgment, or award or to settle 
a personal damage claim shall be contingent upon the availability of 
appropriated funds of the employing component of the United States 
Department of Agriculture.