Your Moonlighting Policy

If you decide to have a moonlighting policy, it doesn't necessarily have to prohibit employees from having other jobs. You will want to make it clear that other jobs should not interfere with an employee's performance at your business, however.

Basic moonlighting policies generally contain the statements addressing:

  • interference with the primary job
  • conflicts of interest
  • your approval of the additional employment

Interference with primary job. The main purpose of most moonlighting policies is to set out your expectation that employees will treat their work at your business as their primary job and will not allow other jobs to interfere with the performance of the primary job.

You may want to consider this clause for your policy. You do not have to restrict an employee's other job opportunities. You're just making it clear that you expect the employee to put your job first.

An example of such a statement is:

Example

Second jobs are permissible only if the employee can continue to perform his or her normal work requirements within the scheduled workweek. Work assignments and schedules will not be changed for you to perform duties not related to ABC Company, Inc.

This clause goes a little further by asking the employee to inform you of any other jobs that the employee has.

Example

ABC Company, Inc., has no objection to your holding another job as long as you can meet the performance standards for your job. ABC Company, Inc., should be notified of your decision to work a second job. If your work performance is affected, we may ask you to drop one job.

Conflict of interest. Part of the reason for having policies is to protect your business. A conflict of interest policy can help you ensure that employees don't start working for your competitors while they're working for you.

An example of a conflict of interest clause follows:

Example

No employee shall ever be permitted to engage his or her time or talents with a firm that competes with ABC Company, Inc. No employee can be permitted to reveal what he or she learns regarding techniques, policy, programs, and so forth to any other individual or company whether a competitor or not.

This sample is more detailed and broader in covering not only the business's information, but in stating that the other job must not interfere with the employee's overall service to the business.

Example

Except as otherwise agreed, employment by ABC Company, Inc., shall be deemed to be "full time." ABC Company, Inc., recognizes the fact that an employee may be justified, under some circumstances, in accepting casual outside employment to be performed after working hours if no conflict with ABC Company, Inc.'s interest is involved.

No employee shall accept or engage in any activity, business, or employment, either during or after working hours, that would conflict with ABC Company, Inc.'s interests or diminish the ability of the employee to render to the company the full, loyal, and undivided service which is contemplated in his or her employment by the ABC Company, Inc.

Approval of employment. In formulating your moonlighting policy, you may want to include a clause that states that an employee must get approval for any outside employment. If you do include this clause, be sure that it isn't too restrictive and that you apply it consistently to all employees — don't allow one person to work another job and prohibit another employee from doing so if circumstances are similar.

Here are some sample statements to include in your policy.

Example
  1. If you wish to work part-time for another firm, please discuss the matter with your supervisor prior to accepting the job. There may be good reasons not to accept another job and thus a problem can be avoided.
  2. Permission to hold any outside employment or business interests with anybody doing business with ABC Company, Inc., its suppliers, or dealers must be secured in writing from ABC Company, Inc. Failure to secure advance permission may result in immediate termination.

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