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.
We explain the rules below.
Are You an At-Will Employee?
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.
FAQs
The short answer is yes, you can be fired for having a second job. 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.
Do employers care if you have a second job? ›
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.
Do I have to tell my employer I am working two jobs? ›
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.
Can an employer ask you to quit your second job? ›
Asking an employee to do something, such as quitting a second job, is likely not illegal. This does not mean that you have to quit your other job if asked to, but your employer does have the right to ask.
Can you prevent an employee from getting a second job? ›
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.
What happens if you get caught working two jobs? ›
Having a second job doesn't violate any laws, but it might be a breach of contract with your current employer. Ensure that the company you're currently working for allows moonlighting and check the company policy and employment contract for guidance.
Can you be on two payrolls at the same time? ›
There are no laws against it, nor requirement to inform any of the employers. There may be contractual constraints you will be required to agree to with either employer. Those then fall under contract law and remedies for breach of contract. Conflict of interest, non-disclosure, non-compete, security, etc…
Is overemployed illegal? ›
If you're asking overemployed.com, yes, it is legal to work multiple jobs. In the US, at-will employment is the law, meaning thanks to the free market, it's fair game for employees to cash in two full-time paychecks at once. They should, however, keep an eye on taxes as rates can escalate very fast.
Can an employer find out moonlighting? ›
At times, social media platforms can help you ascertain the possibility of employees engaged in moonlighting. You can check their employment status posted on social media and professional networking sites or see if they advertise their work activities openly.
Is working two remote jobs illegal? ›
While there is no law against working two full-time remote jobs, it becomes more of an ethical question and is also up to an employer as to what they may do if they found out. Most employers don't mind if you have a side hustle or other part-time job, it's actually pretty common today.
Hire With Jarvis
- Uncover the Indicators that Your Employee May Be Juggling Multiple Positions. ...
- Sign 1: Inconsistent Availability. ...
- Sign 2: Decreased Productivity. ...
- Sign 3: Overuse of Personal Devices. ...
- Sign 4: Exhaustion and Stress. ...
- Sign 5: Vague or Evasive Responses. ...
- Sign 6: Confidentiality Concerns.
While it isn't expressly prohibited by law, we wouldn't recommend it. You might be surprised by how many of your employees are looking for other opportunities—either actively or passively—while still doing good work for your organization.
How to get overemployed? ›
How to be overemployed?
- Having one full-time job and one or more part-time freelance roles. Combined, you should be making the equivalent of two full-time salaries.
- Having a full-time job and a side business. ...
- Having a full-time job with a company in the USA and full-time contract role with a company in Europe.
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.
Can my employer tell another employer not to hire me? ›
Even someone you worked for a few years back could prevent you from getting a job if they give a company reason to be concerned about hiring you. Some companies have a policy of not providing anything beyond basic verification information like start and end dates and position(s) held.
Which states have off-duty conduct laws? ›
Currently, the following states have specific laws providing for off-duty conduct protections that expressly include lawful marijuana use: California, Minnesota, Montana, New York, and Washington.
Do I have to disclose my second job to my first job? ›
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.
Should I mention my second job in an interview? ›
If your side hustle directly relates to the job you're applying for, that's extra experience and skills you can talk about, says Jay. Talk about what you've gained from the side hustle in a way that shows how it will benefit the employer if they hire you.
Do employers care if you already have a job? ›
Looking for a job when you already have one carries its own risks. Your current employer might hear about your job search and look upon it as disloyal, or even a firing offense.
Is working a second job worth it? ›
Two jobs offer the potential for higher income, skill diversification, and accelerated career advancement. However, the trade-offs include increased exhaustion, limited personal time, and a heightened risk of burnout. On the contrary, a single full-time job often provides: Better work-life balance.
