As the federal government moves forward with major workforce reductions, thousands of former federal employees are likely to enter the job market. Many of these professionals bring invaluable experience, agency knowledge, and industry expertise, making them attractive hires for private sector companies, particularly government contractors.
5 Things to Consider When Hiring Former Federal Employees
But hiring former federal employees isn’t always as simple as posting a job listing and conducting interviews. Strict regulations and ethics rules govern post-government employment, and missteps can lead to serious legal and competitive consequences. Here are five key things to keep in mind when bringing former federal employees into your organization.
1. Know the Post-Employment Rules
Former federal employees don’t always have a clean break from their previous roles. In fact, certain ex-officials face “cooling-off periods”, meaning they can’t interact with their former agency in an official capacity for a set time—sometimes one to two years. In some cases, particularly for senior officials, the restrictions are even tighter. Violating these rules can result in fines, lost contracts, or even criminal charges.
2. Avoid Conflicts of Interest
Government procurement is highly competitive, and hiring someone with inside knowledge of contracts, budgets, or upcoming procurements can raise red flags. If a former federal employee had access to non-public, competitively sensitive information, hiring them could trigger an unfair advantage claim—which can lead to bid protests or contract disputes. It’s important to assess what type of information the candidate had access to and implement firewalls when necessary.
3. Be Aware of Payment Restrictions
Certain agencies, especially the Department of Defense (DoD), have additional restrictions on post-government employment. For example, under Defense Federal Acquisition Regulation Supplement (DFARS) §252.203-7000, contractors cannot pay certain former DoD officials for two years unless they first obtain ethics clearance. If you’re hiring someone from a defense agency, make sure they’ve received proper guidance from their agency’s ethics office.
4. Build an Internal Compliance Process
With so many regulations, it’s critical to have a structured process for hiring former federal employees. Companies should:
- Ask candidates upfront about any post-employment restrictions.
- Document any ethics guidance they’ve received from their former agency.
- Train hiring managers on federal post-employment laws.
- Establish firewalls for employees who may have had access to sensitive government information.
Being proactive can prevent potential compliance issues and protect your company’s reputation.
5. When in Doubt, Get Legal Advice
If you’re unsure about how post-employment restrictions apply, it’s always a good idea to consult legal counsel. Government contracts law is highly nuanced, and the last thing a company wants is to lose out on business—or worse, face legal trouble—because of an unintentional violation. A quick legal review can save a lot of headaches down the road.
Tap into Government Expertise
Hiring former federal employees can add significant value to your company, but it’s not as simple as making an offer and onboarding them. Understanding the rules, avoiding conflicts of interest, and ensuring compliance with post-employment restrictions are key to making the process smooth and risk-free. By taking a thoughtful, strategic approach, businesses can tap into government expertise while staying on the right side of the law.
