IV(B): Additional Compensation Arrangements
It's nice to get a little gift of recognition for a job well done. It's even nicer to get a large cash payment for performing some work on the side.
Suppose a charterholder is a part-time employee, and wants to do this extra work during spare time each week. Do you think that this employee would still be subject to this standard?
Incorrect.
Absolutely.
Suppose a client brings an employee a small gift basket during the holiday season. Another employee received a gift of USD 500 cash from a client during the holiday season. Neither received written consent from the employer to receive these gifts. Who is likely in violation of Standard IV(B)?
No, one of these is not a violation of Standard IV(B).
No, receiving the USD 500 cash gift without disclosure is a violation of Standard IV(B).
Yes.
Standard IV(B) specifies that employees must not accept compensation or other benefits that compete with or might reasonably be expected to create a conflict of interest with the employer’s interest. Accepting a small gift basket of immaterial nature would not likely be a violation, but receiving USD 500 in cash would likely require written consent from the employer.
In summary:
[[summary]]
__Standard IV(B): Additional Compensation Arrangements__ places limits on employees accepting gifts or compensation from outside parties for services, due to potential conflicts of interest. Which party do you think this standard is designed to protect?
Exactly.
The employee gets the gift or compensation, and the outside party is willing to pay; no problem there. But there is a good chance that incentives might be set up to put the employer at a disadvantage; so they deserve to know about it. Standard IV(B) requires that written permission be obtained from the employer before such outside arrangements are made.
No, the employee wants the compensation, so no problem there.
No, the outside party is willing to pay for the services, so no problem there.
The problem isn't hours in the week; it's conflict of interest. The potential conflict is still there, so any employment relationship applies. Besides, any member or candidate is always subject to the full standards, so "yes, the standard applies" is always a good default position.
If this part-time employee asks the supervisor, and the supervisor says "sure, that's fine," then is it okay to proceed with the side work?
Actually, no.
You got it!
Verbal consent isn't enough; _written_ consent is required to satisfy the standard.
No
Yes
Both employees are in violation
The employee who received the cash
The employee who received the gift basket
The employer
The employee
The outside party
No
Yes
Continue
Continue
Continue
