pay-to-play

It’s a common scenario: An employee receives a text from a friend asking them to contribute to the campaign of a candidate the friend supports. Without thinking much about it, the employee makes a $500 contribution. Though the employee has been trained on their company’s political contributions policy, it doesn’t…

Continue Reading Election Year Reminder: Pay-to-Play Risks Are Easy to Miss and Costly to Fix

An election year brings ample opportunities for corporations to participate in the political process, and the current political environment can create enormous pressures to do so. But with these opportunities and pressures come legal risks and compliance burdens. Given the differing and complex rules across jurisdictions, companies should be aware…

Continue Reading The 6 Top Compliance Mistakes by Corporations in an Election Year

Covington is pleased to announce that it has revised and updated its comprehensive 50-state survey of pay-to-play laws for 2026.

Companies doing business with the federal government or state and local governments and companies operating in regulated industries are subject to a dizzying array of “pay-to-play” rules. These rules effectively…

Continue Reading Covington Announces Pay-to-Play Survey (2026 Edition)

Covington is pleased to announce that it has revised and updated its comprehensive 50-state survey of pay-to-play laws for 2025.

Companies doing business with the federal government or state and local governments and companies operating in regulated industries are subject to a dizzying array of “pay-to-play” rules. These rules effectively…

Continue Reading Covington Announces Pay-to-Play Survey (2025 Edition)

Last year, an asset manager with offices in New York, Texas, and Vermont was publicly censured by the Securities and Exchange Commission and ordered to pay a substantial fine. Its offense?  The asset manager hired an individual who had previously made a personal political donation to the campaign of a…

Continue Reading Three Political Law Landmines for Hedge Funds, Private Equity Funds, and Investment Firms

Important changes to California’s pay-to-play law took effect January 1, 2025, and now the state’s regulations have caught up to the law.

The state’s Fair Political Practices Commission adopted the new regulations late last month, following statutory revisions to California’s complex pay-to-play law found at California Government Code § 84308…

Continue Reading California Updates Pay-to-Play Law Regulations to Reflect Recent Law Changes

The Securities and Exchange Commission (SEC) this week issued a cease-and-desist order that demonstrates the SEC pay-to-play rule’s expansiveness and the SEC’s readiness to enforce it to the letter, even when it is virtually impossible that a political contribution could have influenced a government entity’s investment decision.

In this alert…

Continue Reading SEC Enforcement Order Highlights Far Reach of Pay-to-Play Restrictions

With Election Day fast approaching, corporations face increasing pressure from both internal and external forces to make legal decisions about political activities. This can be a fraught area of law, with little understood, highly technical regulatory issues that vary significantly across jurisdictions. Corporate counsel should be mindful of common—and sometimes…

Continue Reading Avoiding Pitfalls on the Path to Election Day: Common Political Law Risks for Corporations in Election Season

California recently passed a series of new regulations affecting its “pay-to-play” laws that limit political contributions by state and local government contractors and others involved in proceedings on contracts, licenses, permits, and other “entitlements for use” in the state.  These regulations implement changes to the law that took effect this…

Continue Reading California Passes New Pay-to-Play Regulations for Contributions by Government Contractors and Others

The District of Columbia’s new pay-to-play law will take effect on November 9, 2022.  As we blogged about here, the Campaign Finance Reform Amendment Act of 2018 prohibits certain campaign contributions by contractors doing or seeking to do business with the D.C. government.  This prohibition applies to entities holding…

Continue Reading New Pay-to-Play Contribution Law for D.C. Contractors Takes Effect Next Month