Montclair State University

On-line Ethics Training: Post-Employment

More information can be found in the relevant section of The Plain Language Ethics Guide.

“Post-employment” refers to non-State employment engaged in after you retire or terminate all State employment. It does not apply to your leaving one State position for another.

The State requires that employees submit a signed post-employment restrictions letter before their last day of employment.

Applicable Statutory Provisions

There are two provisions in the New Jersey Conflicts of Interest Law that govern State employees’ activities after they leave State Service:

• Section 17, the general post-employment provision, which applies to all State employees; and

• Section 17.2(c), the casino post-employment restriction, which applies only to those individuals defined in section 17.2(a) of the Conflicts Law.

Section 17 prohibits a former State officer or employee or special State officer or employee from representing, appearing for, negotiating on behalf of, providing information or services not generally available to the public, or agreeing to perform any of those activities for any party other than the State in connection with those causes, proceedings, applications, or other matters in which the officer or employee:

• made any investigation,

• rendered any ruling,

• gave any opinion, or

• had been otherwise substantially and directly involved while in State employment.

There is no time limit on the Section 17 prohibition.

Application of Section 17

In post-employment cases, the Commission uses a two-pronged analysis:

1. Is the former State employee representing, appearing for, negotiating on behalf of, or providing information not generally available to members of the public to a party other than the State; and

2. Was the former State employee substantially and directly involved in the “matter” in question?

Do the restrictions contained in Section 17 apply to the partnership, firm, or corporation that employs the former State employee?

Yes, under the following circumstances:

• if the former State officer or employee or special State officer or employee is a shareholder, associate, or professional employee of a firm organized as a professional service corporation; or

• if the former State officer or employee or special State officer or employee owns or controls more than 10% of the stock of a corporation or more than 10% of the profits or assets of a firm, association, or partnership.

What if I leave State service and my former agency would like to contract with me personally to work on a project that I was “substantially and directly” involved with during my State employment?

The contract would be in connection with the same “matter” with which you were “substantially and directly” involved during your State employment. Nevertheless, you are permitted to contract personally with your former agency (or with any State agency) because you would not be representing a party other than the State.

What factors does the State Ethics Commission consider in determining whether a former State employee’s involvement was “substantial and direct”?

The Commission has typically considered such factors as whether the former State employee had supervisory responsibility, provided input, submitted reports, signed contracts on behalf of the agency, attended meetings, approved applications, had access to confidential information, or was directly involved in decision-making. Cases are fact-sensitive, however. Therefore, you should seek advice on your particular situation from your ethics liaison officer or the State Ethics Commission.

Are there any activities specifically excluded from the definition of “matter”?

Yes, the following are not considered “matters” for the purposes of the post-employment restriction:

• determinations of general applicability,

• preparation or review of legislation that is no longer pending before the Legislature or the Governor, and

• regulations no longer pending before an agency because these are analogous to legislation.

Thus, you are permitted to represent a party other than the State in connection with any of the above.

The general post-employment restriction of Section 17 does not prohibit a former State officer or employee or special State officer or employee or any firm in which he or she has an interest from representing a party other than the State:

• before any State agency, including the individual’s former agency, if the former officer or employee or special State officer or employee was not “substantially and directly” involved in the “matter” while employed by the State,

• accepting employment with entities receiving funding from the individual’s former agency or any other State agency if the State officer or employee or special State officer or employee was not “substantially and directly” involved in the “matter” in question.

• providing information generally available to the public, or

• accepting employment with a firm with which the State officer or employee or special State officer or employee had contact in his or her official capacity if the individual was not “substantially and directly” involved in the “matter” while employed by the State.

Seeking Future Employment

Employees who have direct and substantial contact with any consultants or vendors doing business with the State must refrain from circulating resumes or in any manner seeking employment with those firms while still in State service.

If an employee is solicited for potential employment by a firm with which he/she has direct and substantial contact, that solicitation must be disclosed immediately to the employee’s management and to the departmental ethics liaison officer.

Discussions, interviews, and negotiations should not take place on State time.
The solicitation or discussion of employment with regulated entities, or their representatives, that have a specific cause, proceeding, application or other matter before the employee's agency is not permitted.

Casino Post-Employment Restriction

Section 17.2(c) of the Conflicts Law prohibits a “person,” or any member of his immediate family, from holding, directly or indirectly, an interest in, or holding employment with, or representing, appearing for, or negotiating on behalf of, any holder of, or applicant for, a casino license in connection with any cause, application or matter, or any holding or intermediary company with respect to such holder of, or applicant for, a casino license in connection with any phase of casino development, permitting, licensure or any other matter whatsoever related to casino activity.

Section 17.2(a) defines “person.” Financial disclosure filers are included in the definition of "person." The casino post-employment restriction extends for a period of two years.

Section 17.2(c) was amended on December 20, 1993 to provide an exception for members of a "person's" immediate family if, in the judgment of the State Ethics Commission, such employment will not create a conflict of interest or reasonable risk of the public perception of a conflict of interest.

Application of Restriction to Partnership, Firm or Corporation

The restrictions contained in section 17.2(c) apply to “persons” and immediate family members not granted a waiver and to any partnership, firm or corporation with which such “person” or family member is associated or in which he/she has an interest. The Conflicts Law defines "interest" as the ownership or control of more than 10% of the stock of a corporation or more than 10% of the profits or assets of a firm. The restrictions also apply if the “person” is a shareholder, associate or professional employee of a professional service corporation.

Members of the Bar

Former State officers and employees who are also members of the bar must also adhere to the ethical standards adopted by the New Jersey Supreme Court.

The post-employment restrictions are complex. If you are contemplating leaving your State position, you should seek advice from the University ethics liaison officer or the State Ethics Commission.