Can a company fire you for moonlighting?

Yes, in most cases, a company can fire you for moonlighting, especially if it violates company policy or negatively impacts your primary job performance.

Understanding At-Will Employment and Moonlighting

In the United States, the concept of at-will employment is predominant. This means that, generally, an employer can terminate an employee at any time, for any reason—or no reason at all—as long as the reason is not illegal (e.g., discrimination based on protected characteristics). This broad legal framework typically gives employers the right to fire or discipline their employees for moonlighting.

Nearly every state in the U.S., with the notable exception of Montana, operates under the principle of at-will employment. While most states do have at least one form of exemption to these at-will employment laws, the general rule regarding secondary employment holds unless a specific exception applies.

Common Reasons Employers Restrict Moonlighting

Employers often have legitimate business reasons for restricting or prohibiting employees from working a second job. These can include:

• Conflict of Interest: This is a primary concern. Working for a direct competitor or engaging in a business that competes with your primary employer's interests can lead to termination.
• Performance Decline: If your moonlighting leads to fatigue, missed deadlines, decreased productivity, or reduced availability for your primary role, your employer can take disciplinary action, up to and including termination.
• Policy Violation: Many companies have explicit policies in their employee handbooks regarding outside employment. These policies often require employees to disclose any secondary jobs or seek prior approval. Violation of such a policy can be grounds for dismissal.
• Confidentiality and Proprietary Information: There's a risk that sensitive company data, trade secrets, or client information could be unintentionally or intentionally exposed or used in a second job.
• Brand and Reputation: If your second job involves activities that could reflect negatively on your primary employer's brand or reputation, they may have grounds to intervene.

Navigating Moonlighting: Employee Best Practices

To avoid potential issues with your employer regarding moonlighting, consider these practical steps:

• Review Your Company's Policy: Thoroughly read your employee handbook or employment contract for any clauses related to outside employment, conflicts of interest, or disclosure requirements.
• Disclose and Seek Approval: If your company's policy requires it, or if you have any doubt, proactively inform your employer about your plans for a second job and seek written approval. This transparency can prevent misunderstandings later.
• Ensure No Performance Impact: Your primary job should always take precedence. Make sure your moonlighting does not interfere with your ability to perform your main duties, maintain regular attendance, or meet expectations.
• Avoid Direct Competition: Never work for a direct competitor or start a business that directly competes with your primary employer. This is a common and clear reason for termination.
• Maintain Confidentiality: Be scrupulous in keeping your primary employer's confidential information and intellectual property separate and protected from your second job.

While the general rule is that employers can fire for moonlighting, transparency and adherence to company policies can significantly reduce risks.

For more information on employment laws, you can consult resources from the U.S. Department of Labor or state labor boards.