Legislature Approves “Revolving Door” Exemption for Laid Off State Employees

Earlier today, the Assembly gave final approval to legislation (S.5109/A.8111) that re-opens an existing exemption for state employees who are laid off, and who would otherwise be prohibited from appearing or practicing before their former agency for compensation for two years.

Public Officers Law § 73(8)(a) is commonly referred to as the “revolving door” prohibition. It prohibits employees who leave state service from appearing or practicing before their former agency for two years. Nor are they permitted to receive compensation for any services rendered in relation to any case, proceeding, application or other matter before their former agency during that time.

The Governor and Legislature first relaxed this prohibition in 1995 for state employees who were “terminated because of economy, consolidation or abolition of functions, curtailment of activities or other reduction in the state work force.” The exemption was extended several times in the mid-1990’s.

In 2009, another “revolving door” exemption (Chapter 306 of 2009) was enacted, which applied to state employees laid off between January 1, 2009 and April 1, 2011.

The exemption has allowed attorneys and other professionals, such as engineers, to avoid the two-year bar on practicing before their former agency.

If signed into law by the Governor, the new bill will exempt employees laid off between April 1, 2011 and April 1, 2012 from the “revolving door” prohibition.

It is important to note that the “revolving door” exemption is not automatic. The Commission on Public Integrity (CPI) has an application form on their web site that is applicable to employees who were laid off after January 1, 2009 and before April 1, 2011.

It is not clear yet whether the CPI, which isn’t expected to be functioning much longer, will update its form and accept applications for the exemption. It is very likely that anyone seeking the benefits of this will end up applying to the Joint Commission on Public Ethics, which probably won’t come into existence until the fall.