However, for rank-and-file federal employees the concept of "conflicts of interest" generally controls the restriction on or permissibility of outside, compensated activity, and would bar such "moonlighting" when (1) a statute or a specific agency regulation expressly prohibits that particular kind of outside employment activity, or (2) an outside activity, because of the particular official duties of the employee, would require that the employee "recuse" or disqualify himself or herself from official duties to such an extent as to impair the effectiveness of his or her employment for the government. Conflicting Outside Employment

The conflict of interest limitations on outside, additional private employment of federal employees, which are set out in provisions of federal law, regulation, and executive order, establish the general principle that employees may not receive compensation from certain private parties where a potential "conflict of interest" may arise, that is, where the outside private activity may conflict with one's federal, public position and duties. This standard must be observed by federal employees in the conduct of any outside business and financial activities and relationships. Statutory and Regulatory Restrictions

There are certain specific statutory restrictions which might apply in some circumstances to restrict or prohibit the receipt of outside compensation by executive branch personnel, or to limit certain types of outside activities for private parties. In addition to the general conflict of interest rules and standards discussed above, the Office of Government Ethics has issued regulations on outside lecturing and writing, limiting such compensated activity where particular ethics issues related to an employee's governmental responsibilities may arise. Numerous other agencies and departments in the executive branch have also promulgated regulations which provide specific restrictions on particular types or areas of outside, compensated private employment. High-Ranking Government Officials

There are other, broad prohibitions and restrictions for higher-ranking government officials which may not generally apply to rank-and-file government employees. 78d(a).
Most federal employees in the executive branch of government are not subject to a broad, overall prohibition on so-called "moonlighting." Rank-and-file employees of the government are generally free to take an additional, compensated job outside of their federal work, subject to certain specific "conflict of interest" limitations.
High-ranking officials of the government, on the other hand, may be prohibited from taking any outside compensated private job if they are presidential appointees, and may otherwise be limited in the type of outside employment and the amount of private compensation they may receive if they are non-career officials receiving compensation from the federal government over a particular amount.
For most employees of the federal government, other than high-level appointees and non-career officials, outside employment opportunities and activities are prohibited when they create a "conflict of interest" for the employee with respect to his or her official duties and responsibilities for the government. The Office of Government Ethics expressly provides in regulation that such a "conflict of interest" will arise in two circumstances: (1) when the activity is expressly prohibited either by statute or by a specific agency regulation concerning such conduct; and (2) when general "conflict of interest" principles and rules would require that an employee recuse or disqualify himself or herself from participating in governmental matters to such an extent as to "materially impair" the employee's ability to do his or her duty.
This report examines general statutory restrictions on certain types and categories of outside, compensated employment activities by federal employees, and surveys specific agency and departmental regulations prohibiting particular types and areas of outside, compensated employment activities for employees of that agency or department.