Billionaire Elon Musk is classified as a “particular govt worker” thru his paintings with the Division of Executive Potency, or DOGE, a cost-cutting initiative created by way of President Trump to seek out techniques to trim federal spending.
Musk’s worker standing used to be showed by way of White Space spokeswoman Karoline Leavitt on Monday, even supposing she added that she wasn’t certain whether or not the Tesla CEO has won safety clearance.
DOGE, which is not a federal division, has drawn complaint from Democratic lawmakers and sparked a number of proceedings since Mr. Trump’s inauguration on Jan. 20, with some claiming Musk’s DOGE is violating more than a few rules. For example, two unions and the Alliance for Retired American citizens, an advocacy team for older other folks and retirees, sued on Feb. 3 over DOGE’s get entry to to the Treasury Division’s fee programs — which care for the whole lot from tax refunds to Social Safety bills — alleging that the transfer breaches privateness laws.
That lawsuit identified that, on the time of its submitting, Musk’s standing with the government used to be unclear.
“The Trump management has no longer publicly published whether or not Mr. Musk has been made an officer or worker of the U.S. govt or stays a non-public citizen,” the lawsuit states. “The Trump management additionally has no longer publicly published the employment standing of alternative people who are a part of DOGE.”
In an emailed commentary to CBS MoneyWatch, Leavitt stated, “Elon Musk is a different govt worker and has abided by way of all appropriate federal rules.”
Here is what to grasp concerning the “particular govt worker” designation.
What’s a different govt worker?
A unique govt worker, or SGE, is anyone who”who works, or is predicted to paintings, for the federal government for 130 days or much less in a 365-day length,” in accordance to the Division of Justice.
The function used to be created in 1962 so that you could allow the federal government to faucet out of doors experience, in accordance to the newsletter Executive Government. A unique govt worker will also be paid or unpaid, the Justice Division notes.
Which laws will have to SGEs adhere to?
SGEs “are topic to maximum laws, even supposing occasionally in a much less restrictive approach,” together with ethics and battle of passion laws, the Justice Division states.
However SGEs are also prohibited from running on problems that have an effect on their monetary pursuits, in addition to their spouses, kids or organizations during which they paintings or function a director or trustee. A few of Musk’s companies depend at the federal govt’s contracts, together with SpaceX, which used to be awarded 100 contracts in 2023 value $3 billion, in keeping with the New York Instances.
Musk’s attainable battle of pursuits had been highlighted by way of Senator Ron Wyden, the highest Democrat at the Senate Finance Committee, in a Jan. 31 letter to Treasury Secretary Scott Bessent concerning the Tesla CEO’s get entry to to the dep.’s fee gadget.
“I’m involved Musk’s monumental industry operations in China — a rustic whose intelligence businesses have stolen huge quantities of delicate knowledge about American citizens, together with U.S. govt worker knowledge by way of hacking U.S. govt programs — endangers U.S. cybersecurity and creates conflicts of passion that make his get entry to to those programs a countrywide safety chance,” Wyden wrote.
Then again, an SGE can get a waiver “in case your passion isn’t huge,” the Justice Division notes. “If you don’t qualify for a waiver, you’ll have to disqualify your self from collaborating in any subject that is affecting your monetary pursuits.”
Musk’s $418 billion fortune is in large part tied up in his stakes in SpaceX, value $136 billion, and Tesla, valued at $158 billion, in keeping with the Bloomberg Billionaires Index.
Does Musk wish to make disclosures as an SGE?
Particular govt workers are most effective required to make a public monetary disclosure record in the event that they earn above the GS-15 govt pay charge, or about $123,000. In the event that they make beneath that, they are able to record on a confidential foundation.
It isn’t transparent whether or not Musk is being paid for his paintings or if he is collaborating on a volunteer foundation, even supposing DOGE has recruited full-time salaried workers.
