Legal Definitions - double-dipping

Double-dipping refers to the act of seeking or accepting the same type of benefit, payment, or compensation more than once, either from the same source or from multiple different sources, when such a practice is prohibited, unethical, or results in an unfair advantage.

Here are some examples to illustrate this concept:

• Public Sector Employment and Pension

  Imagine a long-serving government employee who retires and begins collecting their full pension. Shortly after, the same government agency rehires this individual, perhaps as a "consultant" or in a similar capacity, allowing them to earn a full salary in addition to their pension.

  This is an example of double-dipping because the individual is receiving two forms of compensation (a pension and a salary) from essentially the same employer (the government agency) for what might be considered continuous or very similar service. This practice often raises concerns about fairness and the efficient use of public funds, as the individual is effectively being paid twice for their connection to the same public service role.

• Insurance Claims for the Same Loss

  Consider a homeowner whose property sustains damage from a storm. If this homeowner has two separate insurance policies covering the same property and files a claim for the *exact same damage* with *both* insurance companies, without disclosing the existence of the other policy, intending to receive two full payouts for the single loss.

  This constitutes double-dipping because the homeowner is attempting to collect compensation twice for the *same single loss* (the storm damage) from two different sources. Insurance is designed to indemnify (restore to the original state) a loss, not to allow the insured to profit from it. Collecting from both policies for the same loss is generally prohibited and can be considered insurance fraud.

• Duplicate Project Funding

  A non-profit organization develops a specific community outreach program and successfully secures a grant from Foundation A to cover all the program's expenses, including staff salaries, materials, and operational costs. Subsequently, the organization applies for and receives another grant from Foundation B to fund the *exact same program activities and expenses*, without disclosing the existing funding from Foundation A.

  This is an instance of double-dipping because the non-profit is obtaining two distinct funding awards for the *identical set of expenses and work* related to a single program. Grant-making organizations typically prohibit this practice to ensure that their funds are distributed fairly among various deserving projects and to prevent organizations from being compensated twice for the same work or expenses.