§10.02
Outside Business and Professional Activities
Rev. 11/11
A. GENERAL POLICY
Employees may engage in outside business and professional activities outside Laboratory hours and away from the Laboratory as long as such activities do not interfere with performance of their Laboratory duties, create a real or apparent conflict of interest, or subject DOE or the Laboratory to public criticism or embarrassment. As set forth below, Laboratory management review and approval are required for any of the following outside professional activities:
- Work with the potential to interfere with Laboratory employment obligations
- Work of any kind for a scientific or technical organization
- Work paid by federal funds or by a unit of the University of California
- Consulting in a subject area related to the employee’s Laboratory work
If the outside activity is not in one of the categories listed above and is obviously unrelated to the Laboratory’s interests, it does not normally need to be reported or approved. Examples include an outside job or business interest in ranching; retail sales; and music, art, or residential real estate sales. Employees who are undecided as to whether their outside activity must be disclosed in accordance with this policy shall refer the question to the Research and Institutional Integrity Office.
All outside business and outside professional activities must be conducted without the use of Laboratory supplies, equipment, or facilities. See also RPM §§2.05(I) (Integrity in Research), 10.14 (Privileged Information), and 11.39(A)(2) (Use of Laboratory Property and Supplies / General). 
In general, employees are prohibited from engaging in compensated outside employment, activity, or consulting if that activity is sponsored or funded by any Berkeley Lab or University of California entity or through any Berkeley Lab or University of California contract.
In addition, no amount of time due to the Laboratory may be devoted to private purposes, and no outside business or professional activity may interfere with the performance of Laboratory duties. The policy in this section is based on federal and State laws and regulations, the DOE/UC Contract for management of LBNL, and University policy.
Policy concerning ownership or management interest in commercial entities with potential economic or technology connections to the Laboratory is covered in Paragraph (H), below.
B. REVIEW-AND-APPROVAL PRINCIPLES AND TIME LIMITS
1. Principles
The following considerations are made in determining whether a real or apparent conflict of interest exists.
- Incompatibility between regular duties and private interests.
- Employee outside business or professional activities shall not be in competition with current or proposed Laboratory projects.
- Employee outside business or professional activities shall not result in unfair competitive advantage to the outside business.
- Employee outside business or professional activities shall not materially affect the Laboratory’s dealings with the outside business or substantially affect the environment of the economic/technological business sector in which the employee or a near relative has a financial interest as defined by the University of California Conflict of Interest Code.
- Employee outside business or professional activities shall not limit the employee’s responsibility to fully and promptly report significant Laboratory research and development information to DOE.
- Protection of privileged and proprietary information. An employee engaged in outside professional activities shall protect information, skills, or knowledge that is material to current or proposed Laboratory research or development work, and that is proprietary to the Laboratory and not yet in the public domain.
2. Time Limits
There is no specific time limit for an employee’s outside business or professional activities; however, approval is required on an annual basis and whenever there is a change in the scope or terms of work.
C. REVIEW AND APPROVAL OF OUTSIDE BUSINESS AND PROFESSIONAL ACTIVITIES
Outside business or professional activities, including but not limited to consulting, and serving on boards of directors and advisory boards, are normally permitted with most outside organizations. However, Laboratory employees may not engage in outside activities that in any manner interfere with the proper and effective performance of their Laboratory duties or appear to subject DOE or the Laboratory to public criticism or embarrassment (see RPM §2.01 (Employment)). In addition to the general requirements in Paragraph (A), above, prior approval is required for outside business or professional activities that involve the use of information from the subject area of the employee’s Laboratory work, or that involve an entity with whom the Laboratory does business or has the potential to do business, e.g., licensing, sponsored research, subcontracts.
1. Uncompensated Outside Business and Professional Activities
Review and approval of uncompensated outside business and professional activities is at the discretion of the home Division.
2. Compensated Outside Business and Professional Activities
Compensated outside business or professional activities described in this section and in Paragraph (A) (above) require prior review and approval by Laboratory management and institutional officials. The “Request for Approval of Compensated Outside Professional Activity” form is used to obtain most required approvals. In accordance with Contract provisions, the Laboratory provides the DOE Berkeley Site Office (BSO) with information and/or copies of documents pertaining to compensated outside business or professional activities.
D. OTHER PAYMENTS FROM OUTSIDE ORGANIZATIONS
Generally, employees are permitted to accept honoraria from sources other than the Department of Energy (including flow-through funds) for lectures or presentations. However, the California Political Reform Act imposes prohibitions and/or limits on honoraria for employees in positions designated by the University of California Conflict of Interest Code. See Section G below, and RPM §10.03 (Self-Disqualification and Conflict of Interest for Designated Officials). Honorarium payments for one-time lectures do not require Laboratory approval; however, such income may trigger disqualification requirements.
E. TEACHING FOR THE UNIVERSITY OF CALIFORNIA
University policy does not normally allow full-time employees to be paid by the University for dual employment in any additional position. Exceptions for teaching at University of California institutions may be allowed, however, as noted in Appendix I: Table 10.02 (E) (Policy on Teaching for the University of California), which describes the various requirements concerning teaching at the University of California.
To obtain the required approvals, use the Request to Teach at University of California form. Approval of the division director is required. The division sends a copy of the form to their Human Resources Center, which maintains the appropriate record.
F. REVIEW OF EXTERNAL TECHNICAL PROPOSALS INVOLVING LABORATORY INVENTIONS
A Laboratory employee who is invited by DOE or any third party to review a technical proposal that describes (1) his/her own invention/s or (2) any other LBNL invention that the employee is aware of through, for example, previous knowledge of the invention or Background Intellectual Property, shall so inform the Technology Transfer and Intellectual Property Management Office, which will evaluate the information and notify BSO if the subject matter of the proposal involves an elected or waived subject invention in which the Laboratory holds or intends to elect title.
G. POLICY ON OUTSIDE PROFESSIONAL ACTIVITIES FOR THE UNIVERSITY SENIOR MANAGEMENT GROUP
Outside professional activities of Laboratory employees who are members of the University of California Senior Management Group are subject to certain additional special provisions.
Permissible outside professional activities include, but are not limited to, service on state or national commissions, government agencies and boards, committees or advisory groups to other universities, organizations established to further the interests of higher education, not-for-profit organizations, and service on corporate boards of directors.
When it is consistent with DOE and Laboratory objectives and missions, service on behalf of national commissions, government agencies and boards, advisory groups to other universities, and other nonprofit organizations is encouraged. Subject to conditions established in University policy concerning receipt of honoraria and reimbursement for related travel expenses, such service may be undertaken during regular work time. It is particularly important to note that a person who is a “designated employee” under the University of California Conflict of Interest Code may have additional criteria to consider.
When Berkeley Lab members of the University Senior Management Group are called on to serve in their official capacity on scientific advisory boards for DOE and DOE cost-type contractors, this service is considered to be part of the employee‘s regular assignment. Although no honorarium may be received by employees for such service, the Laboratory may be reimbursed for such costs as travel and per diem. If the service involves more than a few days per year, the Chief Financial Officer must be consulted.
The Human Resources Department has complete information concerning the necessary approval and reporting requirements pertaining to members of the University Senior Management Group.
H. OWNERSHIP OR MANAGEMENT INTEREST IN COMMERCIAL ENTITIES WITH POTENTIAL ECONOMIC OR TECHNOLOGY CONNECTIONS TO THE LABORATORY
Employees who own or have an ownership interest of at least 10% in a commercial entity that has economic or technology connections with or may seek to have such connections with the Laboratory, or who have a management interest such as being a member of the Board of Directors in such a commercial entity, must report the interest to their division director. This requirement also extends to an employee’s near relatives and domestic partner. The terms “near relative” and “domestic partner” are defined in University policy as parents, children, spouses, same or opposite sex domestic partners, brothers, or sisters, including in-laws and step-relatives in these relationships.
As a general rule, goods or services are not purchased from any Laboratory/University employee, near relative, or domestic partner because of the basic principles of separation of an employee’s Laboratory/University duties and his or her private interests. A second concern is the protection of the Laboratory/University and its employees from charges of favoritism in the acquisition of goods and services. If an employee’s Laboratory assignment is such that he or she might influence or take part in negotiations or transactions with an outside entity in which the employee has a financial interest, the employee must disqualify himself or herself from influencing or participating in those negotiations or transactions. See RPM §10.03 (Self-Disqualification and Conflict of Interest).
Exceptions to the general prohibition against economic or technology connections with employee-connected firms may be made if the company is the sole source that can provide the goods or services. Such cases must be approved by the Chief Financial Officer. Additional information regarding the appropriate procedure is available from the Procurement Department.
Business ownership or management interest as defined above must be reported on the Notification of Outside Business Ownership or Management Interest form. The Research and Institutional Integrity Office receives copies of the form from the division and uses them to create an “Employee-Connected Commercial Entity” list, which is used by Procurement to implement Laboratory policy that addresses conducting business with employee-connected firms.
I. PATENT AGREEMENTS
When a consulting or employment agreement containing a claim for invention and patent rights is offered to an employee, the outside organization must be advised, under the terms of the DOE/UC Contract for management of LBNL, that the agreement must include the following or equivalent language to obtain Laboratory approval:
“It is recognized that (1) Consultant is an employee of the University of California engaged in certain work conducted by the University at the Lawrence Berkeley National Laboratory under Contract ________________________ with the United States Department of Energy (DOE) and (2) the University has rights to patents and other intellectual property arising from Consultant’s services for that work. This consulting agreement is subject to those rights notwithstanding any intellectual property obligations to contrary in this agreement. Whenever any invention or discovery is solely or jointly made, conceived, or developed by Consultant under the Consulting Agreement, the Company must promptly furnish the University and DOE with sufficient information to timely determine whether the invention or discovery is within the purview of the patent agreement executed by Consultant with the University.”
The text of any proposed consulting or employment agreement must be reviewed and approved by Technology Transfer and Intellectual Property Management before execution of the agreement by the employee. Questions regarding inventions and patent articles in a proposed consulting agreement should also be referred to Technology Transfer and Intellectual Property Management. See also RPM §5.03 (Patents).
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