CONFLICT OF INTEREST POLICY
Name of Employer: ________
Effective Date: ________
It is the policy of ________ (the “Employer”) to ensure that all employees (collectively, “Employees,” and individually, an “Employee”) act ethically and with integrity in the course of their employment. To that end, the Employer has established this Conflict of Interest Policy (the “Policy”) to assist Employees in identifying, avoiding, and disclosing any actual, potential, or apparent conflict of interest in the performance of their duties for the Employer.
This Policy is adopted as part of the Employer’s broader code of conduct and is intended to supplement, and not to replace, any other policies of the Employer, applicable law, or the terms of any written employment agreement.
§ 1. Purpose and Background
1.1 The purpose of this Policy is to ensure that all Employees conduct themselves in accordance with the Employer’s practices and procedures, maintain the confidentiality of all information acquired as a result of employment, and refrain from using their position to benefit conflicting interests or for personal gain.
1.2 Employees should treat this Policy as a guide to assist them in avoiding actual, potential, or apparent conflicts of interest. The examples set forth herein are illustrative only and are not intended to constitute an exhaustive list.
1.3 Nothing in this Policy is intended to, and this Policy shall not be interpreted to, limit or interfere with any rights an Employee may have under the National Labor Relations Act, including the right to engage in protected concerted activity, or under any other applicable federal, state, or local law.
§ 2. Scope
2.1 This Policy applies to all Employees of the Employer, including full-time, part-time, temporary, and seasonal employees, and, where applicable and as designated by the Employer, to officers, directors, contractors, and other persons acting on behalf of the Employer.
2.2 This Policy applies to conduct occurring during and, to the extent permitted by law, outside of regular working hours where such conduct affects or relates to the Employer’s legitimate business interests.
§ 3. Statement of Policy
3.1 Employees are expected to conduct themselves ethically and honestly in the course of their employment. Specifically, each Employee shall:
- comply with all applicable federal, state, and local laws, rules, and regulations;
- conduct themselves in a manner that does not compromise the Employer’s reputation;
- act in the best interest of the Employer during the course of their employment;
- refrain from holding financial interests that conflict with those of the Employer;
- refrain from affiliating with any business that conflicts with the Employer’s business;
- avoid actual, potential, and apparent conflicts of interest;
- disclose actual, potential, or apparent conflicts of interest to the Employer as soon as reasonably practicable; and
- refrain from using, disclosing, or sharing confidential or proprietary information belonging to the Employer except as authorized.
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3.3 Where an Employee is involved in a situation in which a conflict of interest exists or appears to exist, the Employer may take appropriate action, up to and including termination of employment, as warranted by the circumstances and consistent with applicable law.
§ 4. Examples of Conflicts of Interest
4.1 The examples provided herein are illustrative and shall not be considered an exhaustive list. These examples are intended to guide Employees in making decisions that avoid conflicts of interest and to assist Employees in recognizing when a potential conflict must be disclosed.
4.2 Potential conflicts of interest include, without limitation, situations in which:
(a) the Employee, or a relative of the Employee, holds a current or potential financial interest that would impair the Employee’s ability to perform their duties in an unbiased manner;
(b) the Employee is involved in, or has the potential to be involved in, a business that directly competes with the Employer;
(c) the Employee uses the Employer’s confidential or proprietary information for personal profit;
(d) the Employee accepts significant gifts, gratuities, or monetary compensation from third parties working with the Employer, such as clients, customers, or vendors;
(e) the Employee otherwise stands to profit personally as a result of their relationship with the Employer in a capacity other than as an Employee; or
(f) the Employee hires, supervises, or directly influences the terms of employment of a relative or person with whom the Employee has a close personal relationship.
4.3 For purposes of this Policy, “relative” means a spouse, domestic partner, parent, child, sibling, grandparent, grandchild, in-law, or any other person residing in the Employee’s household.
§ 5. Disclosure
5.1 Employees who become aware of an actual, potential, or apparent conflict of interest, whether involving themselves or another Employee, are required to disclose the relevant facts to the Employer as soon as reasonably practicable.
5.2 Disclosure shall be made in writing to the Employee’s direct supervisor or to the Human Resources Department, and shall include all material details necessary for the Employer to evaluate the situation. Disclosures may be directed to: ________.
5.3 Upon receiving a disclosure, the Employer will review the matter and determine whether a conflict of interest exists and what action, if any, is appropriate. The Employer may, in its discretion, require the Employee to take certain steps to eliminate or mitigate the conflict.
5.4 All disclosures will be handled as confidentially as reasonably possible, consistent with the need to conduct an adequate review. Employees who fail to disclose a known conflict of interest may be subject to disciplinary action, up to and including termination of employment.
§ 6. Non-Retaliation
6.1 The Employer prohibits retaliation against any Employee who, in good faith, discloses an actual, potential, or apparent conflict of interest, reports a suspected violation of this Policy, or participates in any investigation under this Policy. Any Employee who believes they have been subjected to retaliation should report the matter immediately to the Human Resources Department.
§ 7. At-Will Employment
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§ 8. Administration and Amendment
8.1 This Policy will be administered by the Human Resources Department or such other person or department as the Employer may designate. The Employer reserves the right to interpret, modify, supplement, or rescind this Policy, in whole or in part, at any time, with or without notice, to the extent permitted by applicable law.
8.2 If any provision of this Policy is held to be invalid or unenforceable under applicable law, such provision shall be modified or severed to the minimum extent necessary, and the remaining provisions shall continue in full force and effect.
8.3 This Policy shall be governed by and construed in accordance with the laws of the State of ________, without regard to its conflict of laws principles.
§ 9. Questions
9.1 For questions regarding this Policy, Employees may contact their direct supervisor or the Human Resources Department.
§ 10. Acknowledgment
10.1 By signing below, the Employee acknowledges that they have received, read, and understood this Conflict of Interest Policy and agree to comply with its terms.
Employee Name: ________
Employee Signature: ________
Date: ________
For the Employer — Name: ________
Title: ________
Signature: ________
Date: ________