Ethics FAQ: Serving on the Board of an Outside Organization

Yes. As a general matter, the Ethics Code does not prohibit an officer of SEIU or an affiliate from also being a member of a board of an outside organization.

However, if the outside activity poses an actual or potential conflict of interest with the officer’s duty to SEIU members, the officer must report the conflict as soon as possible. Likewise, if the outside activity poses a significant, ongoing conflict of interest with the officer’s duty to SEIU members which cannot be appropriately managed, it may be necessary to relinquish one of the positions.

Also, officers should consult any applicable policies related to outside employment or activities prior to beginning service as a board member.

All individuals covered by the Ethics Code–officers, board members, and employees of SEIU and affiliates–must report any actual, potential, or perceived conflict of interest as soon as the conflict is evident. The conflict can be reported to an affiliate ethics liaison or the SEIU Ethics Ombudsperson, who can assist you in managing the conflict. Managing the conflict may include, among other things, recusal from any involvement in the matter(s) related to the conflict.

You should take several considerations into account before accepting a stipend or other compensation for your outside activity as a board member.

In certain circumstances, federal law prohibits an employer from paying anything of value to a labor organization, including its officers and employees, and likewise prohibits a labor organization, including its officers and employees, from accepting anything of value from an employer. (See 29 U.S.C. § 186.) Violation of this law could result in criminal penalties. Hence, you should consult with counsel prior to accepting any stipend or other payment for your service as a board member.

Additionally, Section 6 of the Ethics Code prohibits a covered individual from knowingly accepting any payments of more than minimal financial value (i.e., $25.00) from an employer that engages or seeks to engage in collective bargaining with SEIU or an affiliate. However, there are several exceptions to this prohibition, including one for work and services performed on a part-time basis, through an arm’s length transaction and for normal and customary pay for such work or services.

Last, you should consider whether your service as a board member is part of your regular duties as a union representative. In that event, accepting a stipend for such service, in addition to your regular compensation from the union, could appear to be “double dipping,” i.e., receiving compensation from two sources for the same work.

The Ethics Code will apply to your service as a board member of an outside organization if (1) 25 percent or more of the members of the governing board are officers or employees of SEIU or an affiliate; or (2) 50 percent or more of its funding is provided by SEIU or an affiliate. In these circumstances, you must comply with the provisions of the Ethics Code while you are acting for or on behalf of the outside organization.