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Avoiding Incompatible Activities

State Fund’s Incompatible Activities Statement Policy prohibits Workforce members from taking part in actions contrary to their California civil service and State Fund employment. Our Policy aligns with the California Government Code and Labor Code. 

Additionally, there are special provisions of the California Insurance Code that may supersede some provisions of the Government Code for Board members.

State Fund’s Incompatible Activities Statement Policy requires you to notify Employee Relations (State Fund internal use only) before doing certain acts, including but not limited to:

Doing any type of work contrary to the business interests of State Fund…

…such as taking a job with a competitor, supplier, or contractor that may influence the decisions you make in your State Fund job or…

…that may be in conflict with your State Fund obligations or…

…from anyone except the State related to performing your State Fund job or…

…that competes with State Fund or…

…a close family member at State Fund.

Could having immediate family members working in the same department affect team morale or create perceptions of unfairness, even if there is no direct reporting relationship?

Generally, having family members in the same department is not a conflict as long as no one is involved in reviewing, approving, or appraising a relative’s work. However, it’s important to be mindful of how the working relationship may be perceived by others. To support a positive team environment, maintain clear professional boundaries. If concerns about morale or perceptions arise, contact Employee Relations for guidance.

My nephew applied for and was chosen for a vacant position in my unit. My nephew will be reporting to one of my subordinate supervisors. Is this a problem for me?

Yes. This is a conflict. Notify your management and Employee Relations (State Fund internal use only).

Close Personal Relationships

State Fund strives to foster a workplace that is free from conflicts of interest. Working with, promoting, hiring, or doing business with someone with whom you have a close personal relationship can pose risks to you and the organization. 

To avoid these risks, you are expected to disclose to Human Resources any close personal relationships that you have with employees of State Fund. A close personal relationship includes, but is not limited to, an association with someone by blood, current or former marriage, adoption, and/or cohabitation. 

If you think you have a close personal relationship with a State Fund employee, regardless of the department they work in or if you are in their hierarchy, please notify your supervisor and Human Resources immediately.

Outside (non-State Fund) Work by Workforce Members

You may wish to take on outside work with companies that are not our competitors, customers, or suppliers. You may wish to accept a voluntary, elected, or appointed position with a political entity. 

If you do, note the following:

  • Outside work in itself is not an incompatible activity. However, you must keep your second job strictly separate from your State Fund job. 
  • If you are considering working at a job in addition to State Fund, you must contact Employee Relations (State Fund internal use only) in writing and get approval before you start the outside work.
  • You may not do outside work on State Fund time, on State Fund premises, or with State Fund resources.
  • You must not market or sell products or services to State Fund from the business entity related to your outside job.
  • Your outside work must not interfere with or keep you from giving the time and effort needed to fulfill your duties as a State Fund Workforce member.

I am thinking of working as a part-time sales representative for a life insurance company. Can I accept the job and still work for State Fund?

You cannot take the outside work if:

  • You cannot devote your full time and attention to your job with State Fund or
  • The life insurance company also sells workers’ compensation insurance.

I’ve been offered part-time work in a collection agency. Can I accept the job and still work for State Fund?

You cannot take the outside work if:

  • You cannot devote your full time and attention to your job with State Fund or
  • The collection agency collects debts related to workers’ compensation insurance or services.

I’d like to use my law license to perform part-time legal services. Can I do this?

You cannot take the outside work if:

  • You cannot devote your full time and attention to your job with State Fund or the clients you serve are in any way associated with State Fund business or related to workers’ compensation insurance or services.

Personal Interest Disqualification

At times, to avoid a conflict of interest or the appearance of it, you must remove yourself from making a decision or a contract process based on personal interest.

You must disqualify yourself from making, taking part in, or trying to use your position to influence a State Fund decision when you know or should know you have a personal interest in the outcome that differs from State Fund’s interest.

State Fund strives to be fair, efficient, and neutral when making contracts. You must never give friends or family members an unfair or seemingly unfair advantage in the contracting process. This means you should:

  • Remove yourself from considering or evaluating a business proposal made to State Fund by friends or family members.
  • Never try to divert State Fund business opportunities to friends or family.
  • Never provide friends or family members insider information that the public does not have to assist them in obtaining work from State Fund.
  • Avoid even the appearance of impropriety or favoritism in contracting matters.
  • Seek guidance of management or Employee Relations (State Fund internal use only) if you have any questions about business-related conduct.

When to Disqualify Yourself from Decision-Making or Contracting

State Fund Workforce members must disqualify themselves from making decisions or contracts when taking part in that process would violate the law, our Corporate Policies, or our Code of Conduct.

Potentially disqualifying situations include:

  • Decisions in which you know or should know you have a personal financial interest, or
  • Decisions related to a State Fund contract in which you have any type of personal direct or indirect financial interest, or
  • Decisions related to a State Fund contract where you or an immediate family member also has an outside business relationship with a party to that contract that:
    • Provides better terms than members of the public get,
    • Is worth $1,000 or more, and
    • Your decision is made within the 12 months prior to State Fund’s decision or
  • Decisions made for State Fund where the decision relates to or affects a person or entity with whom you:
    • Are negotiating for a job or
    • Will be employed in the future

California law defines the above situations. If a conflict exists between our Code of Conduct and California law, California law controls.

Reporting Failures to Disqualify

If you believe a Workforce member failed to disqualify himself or herself when needed, you can report: 

  • Anonymously to the Ethics and Privacy Hotline at (888) 254-4301 or online. 
  • Confidentially and anonymously to the California State Auditor. 
  • Internally to the Employee Relations Department through the AskAdmin portal (State Fund internal use only).

Financial Disclosures and the Statement of Economic Interests – Form 700 (SEI)

The California Political Reform Act and State Fund’s Conflict of Interest Code require certain members of State Fund’s Workforce to file yearly financial disclosures. Statements of Economic Interests, Schedules, and ethics course certificates can be disclosed to the public.

For more information about annual disclosure requirements, contact the Fair Political Practices Commission (FPPC) Information line at (866) 275-3772, visit the FPPC website, or visit the California Department of Justice, Office of the Attorney General website.

If I am a designated filer, how often do I need to file the Statement of Economic Interests, Form 700?

You need to file:

  • Once a year if you stay in the same position,
  • Within 30 days of being appointed to a new position, or
  • Within 30 days from the last day you performed the duties of your job if you retire or separate.

Real or apparent conflicts can reduce the trust our customers and the public have in State Fund. Increase our legal risks and hurt our reputation. You must follow federal and California laws that affect your work-related activities.

You must avoid situations that create, or appear to create, a conflict between your personal interests and State Fund interests. When a potential conflict arises, you must disclose it to your manager and to Employee Relations (State Fund internal use only) right away.

Failure to follow the rules and regulations regarding Form 700 can be grounds for employee discipline, including loss of year-end bonus eligibility.

Gifts

State Fund follows:

  • The California statutory law and the Fair Political Practices Commission’s (FPPC) regulations Labor Code Section 3219 (Claims Adjusters, only) and
  • Our Incompatible Activities policy related to gifts
Individual departments at State Fund…

…may adopt more restrictive rules for acceptance of gifts based on their role. Check with your supervisor or manager when you have questions about gifts.

…any payment or other benefit provided to you that confers a personal benefit for which you do not provide payment or services of equal or greater value. Gifts include a rebate or discount in the price of anything of value unless the rebate or discount is made in the regular course of business to members of the public.

  • You must report gifts over $50 from one source. 
  • You may not accept more than $630 in gifts during one calendar year from one source. 
  • You may take no more than $10 a month from lobbyists or legislative employees.

Contact Employee Relations (State Fund internal use only) with your questions. You may also report internally to the Employee Relations Department through the AskAdmin portal (State Fund internal use only). You can also find more information at the Fair Political Practices Commission’s website.

Claims adjusters must follow special rules contained in Labor Code Section 3219. The Labor Code prohibits you from taking a benefit that may look like a reward for referring or settling a claim. Therefore, you may not take any gift from injured workers, doctors, applicant attorneys, or other vendors of services for injured workers.

Can I accept a gift basket from one of State Fund’s computer services vendors I work with as a token of thanks for using their services?

No. You should not take a gift from a vendor doing business with State Fund if it reasonably may influence your decision to use the vendor.

Government Code Section 19990 (f) prohibits you from taking gifts from someone who does or seeks to do business with State Fund if circumstances reasonably show the person wanted to influence your official decisions or to reward you for any official acts.

Gambling

You may not gamble on State Fund premises. Gambling is any game of chance, contest, sweepstakes, or other form of gaming that is prohibited by the California Penal Code or the California Business and Professions Code. 

Gambling activities include, but are not limited to: 

  • Gaming, 
  • Lotteries, 
  • Raffles, 
  • Office pools, 
  • Online betting, or 
  • Where money is exchanged for a chance to win
    a prize.

Monetary Loans

It is an inappropriate use of your State Fund position as a supervisor, manager, or senior leader to request or accept loans from subordinates or other members of the Workforce under your influence or control.

Monetary loans between co-workers are personal, private matters and not the responsibility of State Fund. Employees are under no obligation to lend money to co-workers. If you do enter into this type of transaction, you do so at your own risk.

As a leader, if traveling on State Fund business, you are expected to…

…set the tone for other Workforce members. Your desire to be a good representative of public service, both at the office and outside of work, is a positive reflection on State Fund as an organization.

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Using State Fund Resources

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