MAGA hat sales violate the law!

[onenote]

11. Wrong. It helps to read an entire statute or rule before commenting on it.

5 CFR 2635.102 -- Definitions

(h)Employee means any officer or employee of an agency, including a special Government employee. It includes officers but not enlisted members of the uniformed services. It includes employees of a State or local government or other organization who are serving on detail to an agency, pursuant to 5 U.S.C. 3371, et seq. For purposes other than subparts B and C of this part, it does not include the President or Vice President. Status as an employee is unaffected by pay or leave status or, in the case of a special Government employee, by the fact that the individual does not perform official duties on a given day.

The section you cite in the OP (5 CFR 2635.702) is in subpart G.