Employers often have the ability to restrict employees from working a second job or starting a side business.
There's a good chance your employer can legally fire you for working a second job or even an occasional side hustle.
Plenty of employees work second or even third jobs to make ends meet or explore other career options. Even if you don't work for another employer, you might have your own side business, such as freelance writing or consulting work.
Working as much as you can to earn as much money as possible might seem like the epitome of American capitalism. But, believe it or not, working a second job can sometimes put your other job at risk.
Unless you have an employment contract that limits your employer's right to fire you, you are most likely an at-will employee. (Montana employees are the exception, as it's the only state that protects employees from being fired without cause.)
An at-will employee can be fired at any time, as long as the reason isn't illegal. Your employer can't fire you because of your race or in retaliation for reporting unsafe working conditions, for example.
Off-Duty Conduct Laws
Some states have laws that prohibit employers from taking action against employees based on their legal off-duty conduct. The language and protections offered by these laws vary from state to state. Some apply only to an employee's use of legal products, such as tobacco. Others apply more broadly to any legal activities.
Depending on the circ*mstances, an off-duty conduct law might limit your employer's right to fire you for working a second job, unless it conflicts with or affects your work.
However, many states do not have broad off-duty conduct laws. If you work in one of these states, then your employer is probably free to fire you for working a second job.
Why Employers Care About Second Jobs
Of course, most employers don't fire employees on a whim. It makes no sense to get rid of workers who are doing a good job, and it costs time and money to hire and train replacements. So why would an employer want to fire you for moonlighting?
Employer concerns about moonlighting generally fall into these categories:
Conflict of interest. If you have another job in the same field, your employer might be concerned that you are sharing trade secrets with a competitor or competing with the employer for business. If, for example, you work for a test preparation company during the day and run your own side business providing individual test coaching, your employer might think that you're taking customers away from the company—and using your job with the company to build a client list.
Performance and productivity. There are only so many hours in the day, and some employers worry that an employee who is working 60 or 70 hours a week simply won't have the energy and focus the job requires. If you are showing up for work tired, late, or unprepared, then your second job might be affecting your first.
Use of company resources. Employers won't want you using your work computer, phone, company car, or other company property for your second job, or spending work hours on other projects.
Company Policies on Working Second Jobs
For these reasons, some companies have adopted policies about moonlighting. For example, a company might prohibit working second jobs altogether. Or, a company might require employees to report any outside work to their manager or the human resources department, so the company can decide whether to allow the second job.
Some companies take a more limited approach by prohibiting only outside work that poses a conflict of interest or competes with the company.
If you have signed a noncompete contract with your employer, that might also limit your right to moonlight, especially for competing companies. A few states (including California) don't allow noncompete contracts. In most states, however, a court will hold you to the terms of a reasonable noncompete, including a promise not to start or work for a competing company.
Contact an Employment Lawyer
If you believe you were unfairly fired for working a second job, you should talk to an experienced employment attorney. If your second job competes with your first job or creates a conflict of interest, you likely don't have a good claim.
Otherwise, however, you might have legal grounds for a lawsuit, especially if your state has an off-duty conduct law or if you were treated differently from other employees. If, for example, men were routinely allowed to work second jobs but women were fired for it, you might have a gender discrimination claim.
A lawyer can help you sift through the facts and figure out your legal options.
The short answer is yes, you can be fired for having a second job
second job
A side job, also informally called a side hustle or side gig, is an additional job that a person takes in addition to their primary job in order to supplement their income.
. Most states are at-will employment, so technically, someone can be fired for any reason at any time. Sometimes, employers even have legal grounds to sue or otherwise penalize you for having a second job.
Because it doesn't directly affect things, it's OK to not discuss it at work. If you do decide to let your employer know, you probably don't want to make a big deal out of it. This could make for an awkward exchange. Instead, you can casually mention it in passing or work it into a conversation.
Is it legal to prohibit my employees from working a second job, or fire them for doing so? Yes. Employers may legally limit the rights of their employees to work a second job (often called moonlighting), especially if that work substantially interferes or competes with the duties of their primary job.
A conflict of interest might be perceived as leaking trade secrets or customer data that can end as a legal or financial disturbance for your employer. Even a whiff of a conflict of interest would give your employers a sufficient reason to terminate your employment or even sue you.
Some contracts will stop you from doing any additional work that would limit your ability to do your main job. The most strict contracts might even forbid you from doing any other work at all while you're with your current employer.
Use a Time Tracking and Productivity Analysis Tool
With this insight into the work-time data, employers can better assess individual productivity levels, which could allow them to detect moonlighting to a certain extent. Though there can be umpteen reasons behind low productivity trends, moonlighting can also be one.
Employers often have the ability to restrict employees from working a second job or starting a side business. There's a good chance your employer can legally fire you for working a second job or even an occasional side hustle.
Having two jobs can be difficult to juggle and your performance at your main place of work may suffer. If you are having trouble managing the hours or the effort it takes to have two jobs, consider quitting the second job. It is not worth putting your main source of income at risk.
During my employment with Company, I agree not to accept or continue in any job, consulting work, directorship, or employment other than with Company, without the written approval of senior management of Company.
Working two jobs, whether physically demanding or not, can lead to exhaustion. Without the time to recharge and rest, moonlighters may experience burnout.
Overemployment is a workplace trend that involves people getting multiple jobs. While people have always occasionally worked two part-time jobs or a part-time job and a full-time job, overemployment is more extreme. It involves two or more full-time jobs.
Justifications for Firing Someone with Multiple Jobs
One common reason is a conflict of interest. If one of your jobs involves competing with your employer or engaging in activities that could harm their business, your employer may have grounds to do more than terminate you. They may be able to accuse you of sabotage.
In general, employers can request that you disclose if you have another job. They may do this to ensure there's no conflict of interest or if they are concerned about how the second job might affect your performance in your current role.
With social media, Google searches, and just knowing people in the same industry, someone from your company is more than likely to stumble across what you're doing outside of work. And even if freelancing is technically allowed by your company, in most cases it's still a good idea to give your boss a heads up.
Legally, no requirement mandates an employee to reveal their secondary job to their primary employer. The reason you would have to is if you signed an employment clause that mentioned it. Being transparent can help avoid potential conflicts of interest or work-overlap issues that might arise.
“You aren't legally obligated to tell your employer where you're going next,” said Cole. “But, you should consider your relationship with your manager when deciding whether or not to share that information.”
Because employees in California are employed on an “at-will” basis (meaning either party can terminate the working relationship at any time for any reason), firing an employee for looking for another job is legal under California Labor Code § 2922 — though there may be exceptions.
As a general rule, unless you've signed a valid employment contract that prohibits you from taking a second job, there's no law against working for more than one company. That doesn't mean, though, that your employer can't terminate you for moonlighting or participating in a side hustle.
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