In today’s rapidly changing gig economy, the concept of moonlighting – holding down a second job while employed full-time – has become increasingly common. Many individuals are seeking extra income, diversifying their skill sets, or pursuing their passions outside of their main job. However, this raises an important question: Can my employer fire me for having a second job? This blog will explore the legal and ethical aspects of moonlighting, the potential risks involved, and the best practices for employees looking to juggle multiple jobs without jeopardizing their primary employment and being fired for working a second job.
What is Moonlighting?
When it comes to moonlighting, this concept refers to the practice of an employee working a second job or engaging in freelance work in addition to a primary full-time job. This side hustle can range from freelance writing and graphic design to driving for ride-sharing services or running an online business. The motivations for moonlighting vary widely: some employees may need extra money to make ends meet, while others might be exploring a new career path or honing new skills that could benefit their primary career.
While moonlighting can be a legitimate and practical way to earn extra income, employees must understand the boundaries and potential conflicts that could arise with their full-time employer (including be fired for working a second job).
Can an Employee be Fired for Working a Second Job?
The short answer is: “it depends.” Whether or not your employer can fire you (termination of employment) for moonlighting depends on several factors, specifically your employment contract, the nature of the second job, and the employment laws in your jurisdiction. In many cases, employers cannot simply fire employees for having a second job, but there are exceptions and specific conditions that could lead to termination.
Here are the key factors to consider:
1. Employment Contract or Company Policy
Many employers include clauses in their employment contracts that may address secondary (or simultaneous) employment. These employment contract clauses often fall under terms like “conflict of interest,” “exclusivity of employment,” or “outside employment.” If your contract includes a specific provision that prohibits an employee from engaging in secondary employment, the employer may have grounds for termination of employment.
Some companies also have employee handbooks (or internal policies sometimes called employee manuals) that explicitly state whether employees are allowed to moonlight. Therefore, it is essential to familiarize yourself with these policies before taking on a second job to avoid potential conflicts.
2. Conflict of Interest
One of the most common reasons an employer might fire an employee for moonlighting is if the second job presents a conflict of interest. If the nature of the second job competes with the employer’s business, involves working with clients or partners that the company does business with, or creates a potential for divided loyalty, your employer might have a valid reason to terminate your employment. For example, if you work as a software developer for a technology company and moonlight as a developer for a direct competitor, the employer may see this as a conflict of interest that could prohibit the employee from simultaneously moonlighting with their second job.
3. Productivity and Performance Issues
Employers expect their employees to meet specific productivity standards, and moonlighting can sometimes affect an employee’s performance at their primary job. If a second job is causing you to be devote some of your regular job’s normal workday hours, or sufficiently distracted, your employer may take action. Performance-related issues can be grounds for termination, especially if your side job is negatively impacting your work quality.
4. Non-Compete Clauses
In some cases, certain employees may be bound by a valid non-compete agreement, specifically employees who work as upper executives (such as President, Chief Executive Officers, Chief Administrative Officer, and Chief Operating Officer). A non-compete agreement is a provision in an employment contract that restricts employees from working for competing businesses or starting their own business in the same industry within a specific geographic region and time period after leaving the company. While non-compete clauses typically apply after you leave the company, they can also be relevant while you are still employed, particularly if your second job is in direct competition with your primary employer’s business.
If you are an employee who is subject to a valid non-compete agreement, an employer may argue that you have violated your contractual obligations, and use that as your employer may have grounds for firing you. This is especially if the employer believes that you are using trade secrets or confidential information from your primary job in your side hustle.
5. Confidentiality and Trade Secrets
Employers are highly protective of sensitive company information, including trade secrets, proprietary processes, and client data. If your second job involves work that might expose your employer’s confidential information, such as working for a competitor or providing consulting services in a related industry, you could face legal action, and termination might follow. A breach of confidentiality could result in serious consequences, including a employment lawsuit.
Best Practices for Moonlighting Without Risking Your Job
If you are considering taking on a second job, there are steps you can take to reduce the risk of jeopardizing your primary employment and avoid being fired for working a second job:
1. Check Your Employment Contract and Company Policies
Before you take on a side hustle, review your employment contract and any relevant company policies. Make sure there are no restrictions or clauses that prohibit outside employment or create potential conflicts of interest.
2. Be Transparent
If your second job does not violate any workplace policies, it is still a good idea to be open with your employer. While not all employers require disclosure of side jobs, being transparent can build trust and show that you are committed to your primary job. If there is a conflict of interest or a potential for performance issues, it may be better to address it upfront. However, in all situations, it is important to first obtain an employment lawyer consultation.
4. Avoid Conflicts of Interest
Ensure that your second job does not directly compete with your primary employer or use confidential information. If you work in a specialized field, take extra care not to violate any non-compete or confidentiality (or non-disclosure) agreements.
5. Set Boundaries
Establish clear boundaries between your primary job and side hustle. Designate specific hours for your second job to prevent overlap with your main work hours, and avoid allowing either job to encroach on your personal time and well-being.
Conclusion
Moonlighting can be a great way for employees to boost your income, diversify your career, and explore new opportunities, but it is always essential to approach it with caution. Whether or not you can be fired for working a second job largely depends on the specifics of your contract, the nature of the job, and whether it creates conflicts with your primary employer’s interests. Always make sure you fully understand the legalities and obligations surrounding your employment and side jobs. By being transparent, prioritizing your performance, and respecting company policies, you can successfully balance moonlighting without jeopardizing your primary job.
Call for Employment Lawyer Consultation Today
If you were terminated from your employment for working a second job and were not offered a fair severance package, call today to discuss your options. As an employment law firm in Toronto, Bune Law has reviewed many severance packages and are skilled at negotiating improvements. You will review and get guidance on your severance package before you agree to sign any termination documents, and help ensure that your severance package is fair and reasonable.