Moonlighting Policies

In light of the economy and U.S. unemployment situations, moonlighting has a new appeal for employees.   Employees are working second jobs to make ends meet or just to pay down debt.  And with the holiday season upon us, more people are becoming multiple jobholders.

 

According to the Monthly Labor Review, May 2012,  from 2010 - 2011, the multiple job-holding rates in Texas increased from 3.8 to 3.9%.  In 2011, a Elance survey found that 36% of respondents were starting or operating a business while working full or part time traditional jobs. 

 

To protect business interests, should the employer implement a moonlighting policy?  Well, typically employers won't prohibit employees from moonlighting - unless there is a direct impact to business. One must consider that prohibiting someone from having a second job, where there is no harm to the employer, and taking action against the employee, may have unfortunate legal ramifications. If an employer fires an individual for having an outside job, where there has been no negative impact to the employees duties, performance, etc., a jury might later suspect that the employer was motivated by some form of illegal discrimination.

 

So let's talk about your policy.  At the minimum a Moonlighting Policy should contain:

• Statements addressing conflicts of interest.  Any policy should clearly state that employees are not permitted to accept or engage in any activity / employment that would conflict with the interests of the primary employer.
• Statements addressing interference with the primary job.  Interference may be experienced via impact to the employees performance.  Additionally, the employee may be unable to work overtime due to a commitment to the second job.   Is there an increase in absenteeism or tardiness?
• Your approval for outside employment.  Ultimately the employees true commitment should be to their primary job.

A carefully written policy may protect your organization without intruding too far into employees' personal lives.  And remember, many state laws protect employees' personal lives.  Be cognizant of Lifestyle Discrimination Laws of which some laws address a specific activity and others encompass a wide array of off-duty conduct.  For instance, California, Colorado and New York prohibit discrimination based on any lawful activity by an employee off the premises and during non-working hours.  At this time Texas does not have lifestyle-discrimination laws.

 

Whether or not you decide to institute a Moonlighting policy, clearly communicate your expectations to your employees.