Entitlement to Retention of Compensation and Other Payments in Anti-Nepotism Case

An advance decision was requested by the Farmers Home Administration (FmHA) as to whether an individual who was separated from her position as a result of a violation of the anti-nepotism provisions of the U.S. Code was entitled to payment of unpaid compensation, as well as compensation already received. In addition, FmHA asked whether the individual concerned was entitled to payment on a travel voucher and to retain reimbursement for travel expenses already received. An investigation into the allegations of nepotism showed that the employee's father, an employee with the FmHA, violated the anti-nepotism provision by recommending the individual for an appointment. The agency pointed out that the individual showed on her application that her father was employed by the U.S. Government and that she served the agency in good faith, having had no reason to believe that her appointment was improper. GAO has held that, in view of the clear language of the provision prohibiting the receipt of pay from Government funds by an individual appointed in violation of its provision, such an individual is not entitled to retain salary already received or salary expected. In view of the provision, the individual was neither entitled to the receipt of unpaid salary, nor to payment of salary already received. However, waiver of erroneous salary payments was granted since there was no indication that the individual was at fault in the matter. In addition, the individual was entitled to retain payment of travel expenses received and to the payment of unpaid travel expenses since the prohibition provision only applies to pay or compensation.