Can My Employer Fire Me for Working a Second Job? (2024)

Employers often have the ability to restrict employees from working a second job or starting a side business.

By Lisa Guerin, J.D. UC Berkeley School of Law

Updated 10/03/2023

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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 circumstances, 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.

Can My Employer Fire Me for Working a Second Job? (2024)

FAQs

Can My Employer Fire Me for Working a Second Job? ›

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.
https://en.wikipedia.org › wiki › Side_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 you have to tell your employer you are working 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.

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 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.

Is it illegal to look for another job while employed? ›

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 work two jobs without burning out? ›

How to manage two jobs
  1. Manage your time. Effective time management may be the most important component of successfully working two jobs. ...
  2. Choose the second job carefully. ...
  3. Manage your money. ...
  4. Take care of yourself and loved ones. ...
  5. Protect your first job.
Aug 2, 2023

Can I have two W2 jobs at the same time? ›

There is nothing wrong with having two or three W2 jobs. Your bosses have no reason to object unless one interferes with the other. Rather than sneak around, tell your primary boss that you need more income, that you're thinking of taking a second job, and want to make sure that they don't see any conflict.

Is it unhealthy to work 2 jobs? ›

Working two jobs, whether physically demanding or not, can lead to exhaustion. Without the time to recharge and rest, moonlighters may experience burnout.

Is it illegal to have 2 jobs in the US? ›

Yes. It is legal under federal law and the laws of every state to work more than one job, even if one of your jobs qualifies as full-time. According to the U.S. Department of Labor, between 7 and 8 million Americans, roughly 5% of the total workforce, work multiple jobs.

Is overemployment risky? ›

Since overemployed people have twice the workload of individuals with one job, they may take longer to respond to emails or other communications. Some employers require confidentiality agreements or non-compete agreements, and being overemployed could lead to violations.

Is moonlighting illegal in the US? ›

Moonlighting is generally legal but can be subject to certain restrictions or contractual agreements. Moonlighting, or working a second job in addition to your primary employment, is a topic that often sparks questions regarding its legality. Let's explore the complexities and considerations surrounding this practice.

Will my employer find out I applied for another job? ›

Keep this in mind: While most employers probably don't regularly monitor their employees' internet activity or email exchanges, they're at liberty to do so. Use of a company computer, which isn't your property, means the sites you're visiting and who you're emailing aren't private.

Can you be fired for doing side jobs? ›

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.

Can an employer fire you for seeking another job? ›

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.

Can you get fired without a written warning? ›

Because California is an “at-will” employment state, your employer can fire you at any time, for any reason, without warning. Likewise, you can quit your job at any time you wish. Even with “at-will” employment laws, your employer cannot fire you for a discriminatory reason.

Can you be fired for talking about your boss? ›

But there are many other things you may not know could cause your company to cut ties. Things that can get you fired also include gossiping about others, talking negatively about your supervisor, sharing company secrets, and more.

Do I have to disclose that I have a second job? ›

Disclosure of Secondary Employment

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.

How can I tell if my employee has a second job? ›

To determine if an employee works two jobs, you can look for signs such as decreased productivity, frequent absences, or suspicious behavior.

Will my employer know if I apply for another job? ›

Typically, job applications should be confidential. If they do plan to make you an offer, then they may ask you for references, and at that point you may say, “please don't contact my current employer.” When you apply, you may have to explicitly state: Please don't contact my current employer.

Can you work two full-time jobs remotely? ›

To legally work two jobs, you'll need, at minimum, to keep your work hours separate, limit your use of employee-provided resources to each employer, and explore any business overlap between the two companies. Start your research with your employee handbook, then expand to state laws.

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