Title 5 › PART III — EMPLOYEES › Subpart B — Employment and Retention › CHAPTER 37 — INFORMATION TECHNOLOGY EXCHANGE PROGRAM › § 3703
An agency can send an employee to work at a private company and, while the employee is there, they are treated as still on detail to their regular job at the agency. The employee keeps their federal workers’ compensation coverage, rights, and benefits (under subchapter I of chapter 81), and the time counts as U.S. employment. If the private company or its insurance pays the employee or dependents for the same injury or death and the company paid the insurance premium, that payment is subtracted from the federal compensation that would otherwise be paid. Travel, moving, and pay can be reimbursed by the private company or not, under the same rules as other government details (see section 3375), and any reimbursements go back to the agency’s travel or pay funds. The Federal Tort Claims Act and other federal tort laws apply, and the agency and company can agree on who supervises the employee. Each agency head must try to make at least 20 percent of that year’s assignments to small businesses (as defined by the SBA under section 3(a)(2) of the Small Business Act). A “year” is the 12 months starting when this law was enacted and each following 12-month period; assignments counted are those that start in that year. If an agency misses the 20 percent goal, it must report within 90 days after year end to the House and Senate committees on Government Reform/Governmental Affairs and Small Business, listing how many assignments it made, how many (and what percent) went to small businesses, and why it missed the goal. The 20 percent rule does not apply to agencies that make fewer than 5 assignments in a year.
Full Legal Text
Government Organization and Employees, Source: USLM XML via OLRC
Legislative History
Reference
Citation
5 U.S.C. § 3703
Title 5, Government Organization and Employees
Last Updated
Sep 22, 2026
Release point: 119-110