Can Employees Legally Work a Second Job?
As remote and hybrid work arrangements have become more common, many employers are asking a question they may not have considered a few years ago: Can my employees work for someone else at the same time?
The short answer is yes, sometimes.
Having a second job, freelance business, or side hustle is not automatically a problem. In fact, many employees take on additional work to pursue personal interests, supplement their income, or build new skills. The challenge for employers is understanding when outside employment crosses the line from harmless to harmful.
Most business owners are not looking to police what employees do outside of work. They simply want to know that the work they are paying for is being completed, company information is protected, and employees remain focused and productive during working hours.
That is where clear expectations matter.
What Is Overemployment?
Overemployment refers to situations in which an employee works multiple jobs simultaneously, often without informing their employer. In some cases, this may involve an employee working two full-time remote positions during the same business hours.
However, not every situation involving outside employment looks the same.
For example, an employee who works part-time at a retail store on weekends may present little concern. On the other hand, an employee who uses company equipment to support another business venture, works for a direct competitor, or allows outside commitments to interfere with their responsibilities may create significant risk for the organization.
The goal is not to assume bad intentions. It is to recognize that some forms of outside employment can affect business operations, confidentiality, and employee performance.
Should Employers Prohibit Outside Employment?
There is no one-size-fits-all answer.
Some employers choose to prohibit certain types of outside employment altogether. Others permit it but establish clear guidelines around what is and is not acceptable.
Different standards may make sense depending on the employee's role. For example, organizations may choose to apply stricter expectations to executives, employees with access to proprietary information, or team members in sensitive or client-facing positions.
Employers should also remember that state and local laws may affect their ability to restrict lawful off-duty employment activities. What works in one location may not be permissible in another.
Why Policies Matter
The good news is that employers do not have to choose between banning outside employment entirely and ignoring it altogether, but you do need to have a policy addressing it.
Outside employment policies should address questions such as:
Are employees expected to disclose outside employment?
Are there circumstances that require advance approval?
What types of outside work create conflicts of interest?
Can employees use company equipment, software, subscriptions, or other resources for another employer's benefit?
What happens if outside employment begins affecting attendance, availability, responsiveness, or overall job performance?
Employers should also review confidentiality and conflict-of-interest policies to make sure they cover the reality of the current working environment.
Consistency Is Just as Important
Even the strongest policy loses its effectiveness if it is enforced inconsistently.
If outside employment violates company policy or begins interfering with performance expectations, employers should address the situation quickly and consistently. If you’re uneven in how you enforce the policy, you run the risk of accusations of favoritism, discrimination, or retaliation.
What To Do Now
Most employees with second jobs are not trying to deceive their employers, and are not necessarily a problem. At the same time, overemployment is a reminder that assumptions can create unnecessary risk.
Business owners do not need to overreact, but they do need to be proactive. Clear policies, well-defined expectations, and regularly updated employee handbooks can help prevent misunderstandings before they become larger issues.
For trusted advisors working with clients, conversations about outside employment often lead to broader questions about whether workplace policies still reflect the way people currently work. Sometimes, a simple handbook review can provide peace of mind and ensure businesses are protected.