Hiring of Relatives/Nepotism Policy

The employment of relatives in the same organization may cause serious conflicts and problems with favoritism and employee morale.  In addition to claims of favoritism, personal conflicts from outside work can be carried into the workplace and disrupt day-to-day working relationships.  The purpose of this hiring of relatives policy is to address these issues and protect the interests of the Fund for the City of New York (the “Fund).

For the purposes of this policy, a “Relative” is defined as an employee’s parent, child, spouse, domestic partner, brother, sister, grandparent, grandchild, aunt, uncle, first cousin, any step or half relationships within the preceding categories, and any member of the employee’s household.

1. Pre-existing Relationships.  Relatives of persons currently employed by the Fund may not be hired by the Fund.

2. New Relationships.  If the Relative relationship is established after employment, the individuals concerned must disclose the relationship to the Fund’s President and Chief Operating Officer so that an appropriate plan can be made.  The plan must meet the terms of this policy, the needs of the Fund, and the skills and talents of the employees.  It may include transfer or termination of one of the parties.  

3. Grandfathered Relationship:  Employees with a Relative relationship where both individuals were employed by the Fund on or before the effective date of this policy (July 30, 2010) may both continue to be employed by the Fund, subject to the terms of this policy stated below.

4. The policy also prohibits the hiring of any Relatives of members of the Fund’s Board of Directors or of members of Boards of Directors or Advisory Boards of Incubator/Partner Projects (“Board member”).

5. Interns:  This policy does not prohibit the hiring of a short-term intern (i.e., 12 weeks or less) who has a Relative relationship with a Fund employee or Board member, as long as the requirements set forth below are met.

In the rare circumstance where two employees with a Relative relationship are employed by the Fund, an employee with a Relative relationship may not work directly for or supervise a Relative, and may not occupy a position in the same line of authority within the Fund.  This policy applies to any Relative, higher or lower in the organization, with the authority to review employment decisions.  Transfers or reassignments will not be made if they should result in such a reporting relationship.  In cases where a conflict or the potential for conflict arises, even if there is no supervisory relationship involved, the parties may be separated by reassignment or terminated from employment.

Any hiring manager who intends to hire an intern who has a Relative relationship with an employee of the Fund or a Board member must notify the Fund’s President and Chief Operating Officer prior to making any offer of employment.  In no case may an intern work directly for Relative or otherwise be supervised by a Relative.  The Fund reserves the right to terminate or reassign an intern in cases where a conflict or potential for conflict arises.

Issue Date: July 2010

Updated: June 2024