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Hidden Costs and Risks of Hiring Former Government Insiders

Washington Technology

In this article, Scott Flesch and Joshua Drew explore the strategic value – and potential legal pitfalls – of recruiting current and former federal employees into the private sector. While these individuals bring invaluable experience, agency insight, and professional networks that can give companies a competitive edge in federal contracting, Drew and Flesch caution that missteps in the hiring process can lead to serious consequences. From post-employment restrictions under 18 U.S.C. § 207 to organizational conflicts of interest and compliance risks, the authors emphasize the importance of thorough vetting and cross-functional coordination among human resources (HR), legal, compliance, and business teams. The benefits of hiring former government talent must be balanced with a clear-eyed understanding of the ethical and legal boundaries that follow them into the private sector.