The Hatch Act was passed into law in 1939 after a Senate investigation into the alleged use of government funds in a Kentucky election campaign. The purpose of the Act is to ensure that government programs are conducted in a fair, non-partisan manner and that government employees are protected from intimidation or demotion due to personal political beliefs. It also prevents employees from being promoted based on political affiliation rather than merit.
Federal, state, and local government employees whose earnings are wholly or partially paid with Federal funds are affected by this law. Only the President, Vice-president, and a select group of high-level government officials are exempt.
The Hatch Act restrictions have always been controversial with critics arguing that they violate first amendment rights to freedom of speech. The Supreme Court has thus far disagreed with those arguments. The Act specifically states that employees have the right to speak out on political subjects and candidates, the restrictions are on where and when they are allowed to speak.
In 1993, the Act was amended to allow most Federal employees to participate in political management and campaigns. Most employees are allowed to participate in most types of political activity on their own time. They are; however, not allowed to use an official position or title to interfere with an election or while engaged in political activities. They are not allowed to solicit, collect, or receive political contributions for political organizations or candidates or political fundraisers, unless both individuals are members of certain kinds of labor or employee organizations and the one solicited is not a subordinate. They are not allowed to knowingly solicit or discourage political activity of someone who has business with the government. They are not allowed to participate in political activities while on duty (including telecommuting duty time), in the Federal work place, while wearing a uniform or official insignia, or using a government vehicle. While on duty, they are not allowed to wear campaign buttons or place political posters in the work place. They are allowed to have a political bumper sticker on a private car parked in a government parking lot or garage.
In general, the rules of the Hatch Act are so convoluted and confusing that the smart government employee stays away from any sort of politics in the work place.