Employee moonlighting, a practice where an individual holds a second job in addition to their primary employment, has become an increasingly prevalent topic in the modern workforce.
More than half of the U.S. workers who were asked in an April survey said they’re likely to get a second job or start a side hustle in the next year to prop up their income, according to a June 12 report from the American Staffing Association and The Harris Poll. While moonlighting offers potential benefits for employees, it also presents a complex set of challenges and considerations for employers.
For employees, moonlighting can be a financial lifeline, providing supplementary income to meet rising living costs, pay down debt, or save for future goals. It can also be a pathway for professional development, allowing individuals to explore new skills, gain experience in different industries, or pursue a passion project that their primary role doesn't accommodate. In some cases, moonlighting can even be a strategic move, building a portfolio or network for a future career transition or entrepreneurial venture.
However, the perceived benefits for employees often come with significant risks for employers. The most immediate concern is the potential impact on an employee's performance in their primary role. Fatigue from long hours, divided attention, and a lack of commitment can lead to decreased productivity, missed deadlines, and a decline in the quality of work. This is particularly true if the second job demands substantial physical or mental energy.
Another critical issue is the potential for conflicts of interest. If an employee's moonlighting activities involve working for a competitor, or if their secondary work directly overlaps with their primary job's responsibilities, it can create a breach of trust and even pose a threat to proprietary information or trade secrets. Even seemingly innocuous moonlighting could create conflicts if the employee leverages company resources, client relationships, or confidential knowledge for their secondary pursuit.
Furthermore, moonlighting can raise concerns about intellectual property. If an employee develops new ideas, inventions, or creative works while moonlighting, questions can arise about who owns the intellectual property, especially if the secondary work is related to the primary employer's industry or if company resources were used, however inadvertently.
Employers also face potential liability issues. If an employee is injured while moonlighting, or if their secondary activities lead to legal action, there could be indirect implications for the primary employer, particularly if there's a perceived connection between the two roles.
To navigate these complexities and mitigate risks, clear communication and well-defined company policies are paramount. Employers can establish guidelines regarding moonlighting, outlining what is permissible and what is not. These policies should address issues such as conflicts of interest, use of company resources, confidentiality, and the expectation of maintaining primary job performance. Some companies may require employees to disclose any outside employment, allowing for a proactive assessment of potential risks.
However, there are some jurisdictions that effectively prohibit no moonlighting policies in certain contexts by making it unlawful for an employer to inhibit an employee's lawful off-duty conduct. Reach out to your FrankAdvice HR Consultant to consult on any employee moonlighting questions you may have.