5 U.S.C. § 13143 — Outside earned income limitation

submitted 4 years ago by Pub. L. 117-286 to r/title-5-GOVERNMENT-ORGANIZATION-AND-EMPLOYEES · 414 words · no verdicts yet

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Senior Members, officers, and employees above a certain pay level cannot earn outside income above 15 percent of a set federal pay rate each year, prorated if they only hold the job part of the year. They also cannot accept honoraria at all — though an honorarium can instead be paid to a charity, up to $2,000, as long as it is not a charity that benefits the person or close family.

(a) Outside earned income limitation: (1) In general: Except as (2) allows, a Member, or a noncareer officer or employee whose position is classified above GS-15 (or, outside the General Schedule, whose pay is at least 120% of GS-15's minimum), cannot have outside earned income in a calendar year that exceeds 15 percent of the annual pay rate for level II of the Executive Schedule, as that rate stood on January 1 of that year. (2) Portion of year: If someone becomes a covered Member, officer, or employee partway through a calendar year, their limit for the rest of that year is that same 15 percent figure, multiplied by a fraction — the number of days they held the covered position that year, divided by 365. (b) Honoraria prohibition: A Member, officer, or employee cannot receive any honorarium while serving in that role. (c) Treatment of charitable contributions: An honorarium that would otherwise go to a Member, officer, or employee — but for the ban in (b) — can instead be paid to a charitable organization on their behalf, and that payment does not count as the individual receiving it. No such payment can exceed $2,000, and it cannot go to a charity that gives the individual, or their parent, sibling, spouse, child, or dependent relative, any financial benefit.

the actual law source: uscode.house.gov ↗public domain

(a)Outside Earned Income Limitation.—

(1)In general.—

Except as provided by paragraph (2), a Member or an officer or employee who is a noncareer officer or employee and who occupies a position classified above GS–15 of the General Schedule or, in the case of positions not under the General Schedule, for which the rate of basic pay is equal to or greater than 120 percent of the minimum rate of basic pay payable for GS–15 of the General Schedule, may not in any calendar year have outside earned income attributable to such calendar year which exceeds 15 percent of the annual rate of basic pay for level II of the Executive Schedule under section 5313 of this title, as of January 1 of such calendar year.

(2)Portion of year.—

In the case of any individual who during a calendar year becomes a Member or an officer or employee who is a noncareer officer or employee and who occupies a position classified above GS–15 of the General Schedule or, in the case of positions not under the General Schedule, for which the rate of basic pay is equal to or greater than 120 percent of the minimum rate of basic pay payable for GS–15 of the General Schedule, such individual may not have outside earned income attributable to the portion of that calendar year which occurs after such individual becomes a Member or such an officer or employee which exceeds 15 percent of the annual rate of basic pay for level II of the Executive Schedule under section 5313 of this title, as of January 1 of such calendar year multiplied by a fraction the numerator of which is the number of days such individual is a Member or such officer or employee during such calendar year and the denominator of which is 365.

(b)Honoraria Prohibition.—

An individual may not receive any honorarium while that individual is a Member, officer or employee.

(c)Treatment of Charitable Contributions.—

Any honorarium which, except for subsection (b), might be paid to a Member, officer or employee, but which is paid instead on behalf of such Member, officer or employee to a charitable organization, shall be deemed not to be received by such Member, officer or employee. No such payment shall exceed $2,000 or be made to a charitable organization from which such individual or a parent, sibling, spouse, child, or dependent relative of such individual derives any financial benefit.

Source credit: (Pub. L. 117–286, § 3(c), Dec. 27, 2022, 136 Stat. 4303.)

history & why it existsrecord from the source credit

2022Enacted · Pub. L. 117-286 · 136 Stat. 4303

A history note hasn’t been published yet. The record shows enactment by Pub. L. 117-286 on 2022-12-27.

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