Federal employees who "moonlight" on the side as experts witnesses have had a rude shock as a result of the 1989 Ethics Reform Act.
This Act was passed by Congress in connection with their $35,000 pay raise. As those of you who followed this piece of legislation may remember, the pay raise was passed in exchange for a prohibition on outside fees earned by members of Congress. They had been raising ten of thousands of dollars in honorariums by speaking and writing. In phrasing the legislation to prohibit honorariums, there was a lack of agreement. The result was a prohibition of any outside income from speaking, appearing or writing by any federal employee. Although other federal employees did not share in the significant pay raises Congress granted themselves, they were recipients of the prohibitions.
The Act has been interpreted to preclude any Federal employee from receiving money in exchange for consultation or expert testimony.
This Act went into effect on January 1, 1991. Apparently, it does not effect agreements entered into before that date, so those who were already working on a case could finish it. This is open to interpretation by the agency legal officer and may vary slightly from agency to agency.
The unfair result of this Act has given rise to one law suit, and five bills in Congress. While it may be voided by the courts or rescinded by Congress, until that happens, the effect is a complete prohibition on Federal government employees acting as experts for others outside the government.
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