WORK & CAREERS : SHOP TALK : Employer Could Lawfully Limit Pro Bono Activities

Q: I am a state-licensed certified public accountant currently working as an at-will employee for an international insurance company.

One of the optional components of my employer’s performance management and promotional program is community service. I have been setting aside two hours each Sunday after church to give pro bono tax and accounting advice to underprivileged parishioners on a wide range of general issues. The services are always performed on Sunday afternoons and never involve any property or technology belonging to my employer.

I have recently been informed that this service violates my employer’s prohibition of outside employment and will result in my immediate termination if I continue to provide it.

Assuming that I perform all assigned tasks at work on a timely and competent basis, can my employer limit my outside pro bono professional activities?

--R.L., Orange

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A: An employer may lawfully restrict its employees’ outside pro bono activities, especially if those activities might create the potential for a conflict of interest or a risk of liability.

If your employer sold accounting services, for example, it would be justified in prohibiting you from providing those same services for free.

In your case, however, it appears that your employer does not sell such services and that it has two conflicting policies--one encouraging community service and one restricting it. You should ask your superiors to clarify these seemingly conflicting policies.

Your employer might have a legitimate interest in protecting itself against malpractice claims based on the pro bono services you provide. You may be able to allay your employer’s fears in this regard, however, if you agree not to transact any pro bono work from your office, and not to use your employer’s stationery or business cards in performing your pro bono work.

--James J. McDonald Jr.

Attorney, Fisher & Phillips

Labor law instructor, UC Irvine

Job Applicant and Medical History Q: For the last two years, I’ve worked as a freelancer while completing graduate school.

My plans to look for a full-time position have been delayed because of two surgeries I had in the last 8 months. I’m currently recuperating from the second one.

I haven’t worked since last November, and a chief executive I know has advised me not to disclose the medical treatment as my reason for the hiatus. She says rejecting applicants because of their medical histories is the new (unprovable) form of job discrimination. Should I come clean in job interviews?

--F.P., Chicago

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A: The fact that you have been completing graduate school and doing freelance contract work before your surgeries means that you haven’t been in regular full-time employment for quite a while. I would simply inform prospective employers that you are now looking for full-time employment after completing your graduate work. It doesn’t seem necessary to disclose your recent surgeries unless you are asked.

If the issue comes up, I think you should be honest and open. It is my belief that the vast majority of employers will not discriminate based on health concerns.

--Ron Riggio

Director, Kravis Leadership Institute

Claremont McKenna College

Transferring 401(k) Distribution Q: A few months ago, I left my position with one company and began a job with another. Both have 401(k) plans. I completed all the paperwork from both companies to transfer my 401(k) distribution but still have not received it from the old company. Is there a limit to how long they can hold on to my contribution to the plan?

--L.D., Downey

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A: The law does not impose any requirement that a rollover occur within a specified time period.

Although you may be eager to get your distribution, you should realize that the amounts will continue to be invested and grow, whether those amounts remain in your previous employer’s plan or are in your current employer’s plan.

One reason transfers are not always made as quickly as employees prefer is that the assets of the plan may be valued only every month or every quarter. In those circumstances, plans often wait until the valuation date after termination of employment to measure the amount of the employee’s benefit.

--Kirk F. Maldonado

Employee benefits attorney

Riordan & McKinzie

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If you have a question about an on-the-job situation, please mail it to Shop Talk, Los Angeles Times, P.O. Box 2008, Costa Mesa, CA 92626, or e-mail it to shoptalk

@latimes.com. Include your initials and hometown. The Shop Talk column is designed to answer questions of general interest. It should not be construed as legal advice.