Citywide Anti-Nepotism Policy & Procedure Frequently Asked Questions (FAQ)

The NYC Anti-Nepotism Policy and Guidance for Not-for-Profit Contractors of Human Services provides guidance for the human services standard contract provisions (sections 6.05 and 6.06) prohibiting Nepotism within a Contractor's organization and specifying Contractor requirements and penalties for non-compliance.

The definition of Nepotism can be found in the NYC Anti-Nepotism Policy and Guidance for Not-for-Profit Contractors of Human Services. According to this policy, Nepotism is “a demonstration of partiality towards a family member or close relative in both economic and employment practices. Nepotism includes the practice of granting favors, jobs, and contracts to family and close relatives (by blood, adoption, marriage, domestic partnership, or cohabitation) to work or do work in the same organization and/or the potential of such practice.”

You can find the policy on the Mayor’s Office of Contract Services (MOCS) Contract Compliance Support webpage.

Not-for-profit organizations that hold human services contracts with NYC agencies must adhere to this policy.

No. For-profit organizations are not subject to the human services contract provisions and are therefore not subject to this policy.

The definition of Immediate Family can be found in the NYC Anti-Nepotism Policy and Guidance for Not-for-Profit Contractors of Human Services. According to this policy, Immediate Family “includes, but is not limited to, spouse, domestic partner, father, father-in-law, mother, mother-in-law, brother, brother-in-law, sister, sister-in-law, son, son-in-law, daughter, daughter-in-law, niece, nephew, aunt, uncle, cousin, and separated spouse. Where a member of an Immediate Family has that status because of that person’s relationships to a spouse (e.g., father-in-law), that status shall also apply to a relative of a domestic partner. As a result, this provision also applies to stepchildren where applicable.”

No. Grandparents and grandchildren are not considered Immediate Family members under the definition of Immediate Family in the NYC Anti-Nepotism Policy and Guidance for Not-for-Profit Contractors of Human Services.

For any questions regarding the Anti-Nepotism Policy, you may contact the Mayor’s Office of Contract Services Vendor Integrity Unit (MOCS VIU) at antinepotismrequest@mocs.nyc.gov.

Yes. As board members oversee the entire organization, the board member and the case manager, who is an organization Employee, are in the same line of supervision, requiring written consent.

No.

The Procedure to Request Written Consent Under NYC Anti-Nepotism Policy describes the detailed steps human services Contractors should follow to request written consent from your contracting agency commissioner if there are Immediate Family members in the same line of supervision, or the provider is contemplating such an arrangement. The purpose of the procedure is to streamline the approval process for providers that work with multiple NYC agencies, and provide a standard process to request written consent from the contracting agency commissioner for any Immediate Family relationship between Employees or between Employees and members of the Board of Directors that would otherwise violate the NYC Anti-Nepotism Policy and Anti-Nepotism provision found in section 6.05 of the New York City Human Services Standard Contract.

Section 6.05(C) of New York City’s Human Services Standard Contract prohibits anyone from “hold[ing] a job or position with [the] Contractor over which a member of his or her Immediate Family exercises any supervisory, managerial, or other authority whatsoever…” unless they have the “prior written consent of the Commissioner…”

Not-for-profit human services Contractors must follow the Procedure to Request Written Consent if their organization has or will have Immediate Family members that are in the same line of supervision.

No.

According to the Procedure to Request Written Consent, the Request for Written Consent online form must be completed by an Authorized Person. According to the Anti-Nepotism Policy, an Authorized Person, whether or not a member, officer, or Director, is authorized to act on behalf of the provider as a corporate entity, which is usually specified in the organization’s by-laws.

After submitting a Request for Written Consent, via the online form, unless otherwise indicated by your contracting agency, those two Immediate Family members can continue to work at the organization until a decision is made by the contracting agency commissioner. The Authorized Person who submitted the Request for Written Consent should be available to respond to any requests for additional information.

You will receive a letter from the contracting agency commissioner outlining their determination(s) on the Request for Written Consent for the two Immediate Family members. Retain this letter for your records as proof of compliance with the policy while contracting with this agency.

Yes. If the commissioner approves your Request for Written Consent, you should retain the commissioner’s determination letter as proof of compliance with the Citywide Anti-Nepotism Policy while contracting with the agency.

Yes. If the contracting agency commissioner approves the Request for Written Consent with conditions, the organization must make whatever changes in the organization that are required to comply with the specified conditions and then email a statement of compliance to the contracting agency within 30 calendar days of the decision.

The statement of compliance must include certification by an Authorized Person of the actions the Contractor took to achieve compliance with the Human Services Standard Contract Section 6.05. The statement of compliance should include an explanation and documentation of how the contract violation was remediated, dates of the Contractor’s specific actions, and any other reports requested by the agency. You should also retain the commissioner’s determination letter as proof of compliance with the Citywide Anti-Nepotism Policy.

If the contracting agency commissioner denies the Request for Written Consent, the Contractor will have 30 calendar days from the date of the agency’s communication to remediate the employment relationship that has been determined to violate Section 6.05 of the New York City Human Services Standard Contract and submit a statement of compliance to the contracting agency indicating how the contract violation was remediated. You should also retain the commissioner’s determination letter for your organization’s records.

Yes. Depending on the severity, penalties for non-compliance include the following:

• Funds are withheld until requirements are successfully met.
• Disallowance of funds for related Employees during the period of noncompliance.
• Imposition of a Corrective Action Plan.
• An adverse performance evaluation in PASSPort.
• The City’s inability to find the Contractor responsible for future contracts until the Contractor is in compliance.
• Any other adverse contract action, including termination.

Yes. You must respond and meet deadlines indicated in any correspondence from MOCS or your contracting agency to ensure timely responses.

Your Request for Written Consent may have been denied based on, but not limited to, the following reasons:

• Contractor has failed to implement a written anti-nepotism policy with clear disclosure requirements after agency direction to do so.
• An Employee or Director with an Immediate Family member in their line of supervision has direct access to view, edit, change, and/or amend payroll or payroll decisions.
• An Employee or Director with an Immediate Family member in their line of supervision has access to the Contractor’s bank account(s) and/or accounting records.
• An Employee or Director with an Immediate Family member in their line of supervision approves disbursements, third party agreements, payroll processing, and/or changes in employment.
• One Immediate Family member is a Key Person, and the other Immediate Family members received a significant pay increase or received a salary that raises questions of reasonableness.
• An Immediate Family member in a Key Person’s line of supervision was not disclosed to the board or the NYC agency when known to an Authorized Person.

To determine the specific reasons that led to a denial, inquire with your contracting agency.

The Authorized Person of the organization must submit the Request for Written Consent via the online form. According to the Anti-Nepotism Policy, an Authorized Person is a person, whether or not a member, officer, or Director, who is authorized to act on behalf of the provider as a corporate entity, which is usually specified in the organization’s by-laws.

You can only disclose one relationship consisting of only two Immediate Family members in each Request for Written Consent. If you have multiple Immediate Family relationships that require the commissioner’s written consent, you must submit a Request for Written Consent for each relationship of Immediate Family members in the same line of supervision. No more than two people should be disclosed per request.

According to the Anti-Nepotism Policy, an Authorized Person is a person, whether or not a member, officer, or Director, who is authorized to act on behalf of the provider as a corporate entity, which is usually specified in the organization’s by-laws.

Please refer to the Request for Written Consent online form. It provides detailed information and instructions on how to record the first and second Immediate Family member.

Yes.

To assist with processing and review, we recommend Contractors submit any of the following below. The more information you provide, assists MOCS VIU reviewers with processing your request efficiently.

• Calendar year payroll stubs of the Immediate Family members
• A current Board of Directors list
• Relevant, approved board meeting minutes detailing the Board’s formal notification of the relationship and their approval
• A human resources manual
• Organization by-laws
• A performance review/evaluation procedure
• Employee performance reviews of Immediate Family members
• Justification/rationale for any payment increases.

After you submit your request, the Mayor’s Office of Contract Services Vendor Integrity Unit (MOCS VIU) will complete a preliminary review of your request. MOCS VIU may reach out to you to request additional information and/or clarification of the information submitted.

Once the review is complete, MOCS VIU will send the request and all supporting documentation to your contracting agency for their review. Once your request has been finalized, you can expect an email from the contracting agency commissioner with their determination. The contracting agency commissioner has complete discretion to approve or deny any Requests for Written Consent. Note: MOCS VIU does not make any final determinations on the Requests for Written Consent.