As the holiday season approaches, elected officials generally want to show their appreciation to employees by providing turkeys, hams, or bonuses. Those of us who represent cities and towns have an appreciation for the work done by employees and recognize that for some, provision of a turkey or ham can make a big difference to their families, especially this time of year. It is important, however, to educate your elected officials about the law in this regard.
The Handbook for City Employees published by the Oklahoma Municipal League does a wonderful job discussing the issue of turkeys, hams, and other types of renumeration. Specifically, this portion of the Handbook notes as follows:
"When the season of giving is upon us, it is within the human spirit to give. The holiday season is when OML receives numerous inquiries regarding giving employees a Christmas bonus, providing a turkey/ham or giving city/town council members a gift. Although the intent is good, it can cause a great deal of confusion for city employees and members of the governing body.
OK Const. Article 10, Section 14.A 'Except as otherwise provided by this section, taxes shall be levied and collected by general laws, and for public purposes only, et al.' Basically, this prohibits gifts or donations of public funds directly by the payment of money, including providing free rent, utilities or other services, or indirectly by lending public equipment or the labor of public employees when the primary benefit goes to a private corporation, association or individual.
Oklahoma State Laws have strict regulations about changing an elected official’s salary while he/she is in office. What about giving a turkey or a ham? It seems harmless, but if the turkey or ham was purchased with public funds, it would be considered an emolument (fringe benefit). Laws in Oklahoma prohibit an elected or appointed official’s salary or emolument to be changed after his or her election and/or appointment.
Municipal employees may receive a Christmas Bonus or a turkey/ham as compensation, but this is a matter of policy. A Christmas bonus or free turkey/ham is not a gift when they are used as payment in exchange for service to the public as a whole. The value of the compensation must be figured as income for reporting purposes under state and federal laws. For a non-cash item to be a true payment, it must be recorded as a real part of one's salary."
Boards, Councils, and Commissions may provide a turkey or ham to employees with public funds so long as it is considered a part of their compensation is calculated as income. Obviously, provision of a turkey or a ham to elected officials would not be recommended for the reasons set forth above.