What You Need to Know About Working Multiple Jobs

Imagine this: You’ve just discovered that one of your star employees is juggling not one, but two full-time jobs. Is it legal? Can you do anything about it? And if so, what should you do next?

​​The modern work landscape, with its mix of remote work, gig opportunities, and financial pressures, has led many to take on more than one full-time job just to get by. In the US, over 8 million people are doing just that.

But tackling multiple jobs can set up some sticky legal and ethical snares. In this article, we’ll cover the legality of overemployment, risks for employees and employers, tips for constructive conversations with employees working multiple full-time jobs, and more.

Is It Legal to Work Two Full-Time Jobs?

In short: Yes, it’s legal to work two full-time jobs. But just because it’s legal doesn’t mean it aligns with company policies. Some employment contracts include an exclusivity clause, meaning working for another company could be grounds for termination. So employees should review their employee handbook and contract just in case.

What Is Moonlighting?

Moonlighting refers to when an employee works an additional job, usually part-time, outside of their primary working hours. Importantly, moonlighting is often a temporary gig. There are many forms of employee moonlighting, such as:

• Working a full-time job and a part-time job
• Working full-time during the week and freelancing on weekends
• Having a nine-to-five job and running a side business during weeknights

Is Moonlighting Illegal or Just Unethical?

Moonlighting itself isn’t illegal, and it’s not inherently unethical either. But there are a lot of questions to consider.

For instance, let’s say someone works full-time as a software engineer during the week and moonlights as a part-time dance instructor on the weekends. As long as the employee isn’t violating exclusivity clauses and continues to meet company performance standards, this arrangement is generally acceptable.

What Is Dual Employment Status?

Dual employment status refers to when an employee works two jobs at the same time. While moonlighting can often mean taking on a side gig, dual employment means a person has two distinct employers, each with formal employment contracts and potentially full-time hours.

For example, let’s say someone’s juggling two full-time roles—a full-time software engineer and a full-time instructional designer. Even if the working hours don’t overlap, the employee might land in hot water if their performance starts to slip in one or both jobs, or if it turns out these companies are competitors.

Is Working Two Jobs a Conflict of Interest?

It depends. Working two jobs can be a conflict of interest under certain circumstances, such as:

• Working for competitors: Employees who work for direct competitors will likely have access to trade secrets, proprietary information, and other confidential data from both companies, leading to potential legal repercussions.
• Conflicting schedules: If the hours of an employee’s second job overlap with their primary job’s schedule, this could lead to costly cases of time theft.
• Divided loyalties: Having a second job might lead the employee to have strained relationships with one or both employers.

What Should You Know As an Employee Working Two Full-Time Jobs?

While working two full-time jobs can provide a substantial boost in income, employees should also be aware of potential negative effects of being overemployed, such as:

• Stress: Juggling the demands of two jobs can increase the risk of physical and mental exhaustion and burnout.
• Sleep deprivation: Employees may have less time to sleep, especially if they’re working night shifts that disrupt their natural circadian rhythm. Sleep deprivation or deficiency can affect mood, impair decision-making, lower immunity, and harm overall wellbeing.
• Poor work performance: Feeling overworked can lead to lower productivity, more mistakes, and poor performance, which could result in career stagnation or termination in one or both jobs.
• Tax consequences: Failing to accurately report income from a second job could lead to legal consequences regarding tax evasion. If your second employer doesn’t withhold taxes for you (think: freelance and contract positions), an easy way to get ahead of it is to have your primary employer increase your tax withholdings.

What Should You Do If You Believe an Employee Is Working Two Full-Time Jobs?

If you believe an employee is working two full-time jobs, review the company’s employee handbook, employment contracts, and any policies regarding moonlighting or conflicts of interest. Before taking punitive action, be sure to verify that the employee is indeed working two full-time jobs.

How to Tell If an Employee Has a Second Job

If you suspect an employee is working a second job, it’s crucial to abide by company policies and respect the employee’s privacy. If you want to look into it, here are some methods to consider:

• Check social media: Review their LinkedIn profile to see if they have two current employers listed, and check other social media platforms to see if they’ve posted about another job or side business.
• Search Google: Searching the employee’s name might show public information about their involvement with other organizations or freelance projects.
• Review attendance records: If the employee has been regularly requesting time off for specific days or frequently calling out sick, coming in late, or leaving early, it may be possible they’re working another job.
• Observe behavior and work performance: Does the employee constantly seem tired or stressed? If they’re also missing deadlines, making uncharacteristic mistakes, or generally unable to handle their typical workload, it may be a sign they’re overemployed.

How to Respond to an Employee with Multiple Full-Time Jobs

If your organization explicitly prohibits having two full-time jobs, your documented policies should also outline how to proceed (e.g., warning, termination).

On the other hand, if there are no established policies about moonlighting, first assess their work performance. If the employee is still fully present at work, isn’t working for a direct competitor, and still meets deadlines and company standards, it may not be an immediate concern.

However, there’s still potential for conflicts of interest or burnout in the future. So if your company doesn’t already have documented policies regarding additional employment, this is a good time to start putting them in writing.

If you’ve verified that an employee is working multiple full-time jobs, here are some steps for approaching the matter sensitively:

1. Meet one-on-one: Discuss the issue privately in a non-confrontational manner. Fostering open communication will allow you to express any concerns about their work performance and let them share their side of the story.
2. Review company policies: If your company has established policies on dual employment, conflicts of interest, or moonlighting, go over them together. It may just be a misunderstanding. However, if it’s a clear policy violation, inform the employee of the consequences.
3. Assess and mitigate risks: Even if their second employer is not a direct competitor, dual employment may be a conflict of interest if it affects their ability to perform well in their primary job. You may have to ask them to terminate their external employment if they wish to remain with your company.
4. Determine what employees need: In most cases, employees work multiple jobs out of financial necessity. Consider reviewing and adjusting compensation structures so employees don’t need to be overemployed. If that’s not possible, consider alternatives such as flextime or a 4-day workweek.
5. Document the agreement: Summarize the discussion and any agreed-upon actions in writing to ensure mutual understanding.
6. Monitor the situation: Regularly check in with the employee to ensure they’re meeting performance standards. If they violate the documented agreement, be prepared to take further action, up to and including termination if necessary.

If you decide to allow external employment, create a clear policy outlining what’s permitted, any disclosure requirements, and potential consequences for violating the policy. For instance, you might require employees to disclose other employers or side businesses so that you can assess potential conflicts of interest or other risks.

Also, be clear that although your company may allow employees to work multiple jobs, they’re still expected to have regular availability and meet performance standards.

Can You Terminate an Employee for Looking for Another Job?

Let’s say an employee doesn’t have two full-time jobs, but they’re actively or openly looking for a new position. Can you terminate an employee for being on the hunt? In most cases, yes. All states (except Montana) allow “at-will” employment. This means the employer can terminate an employee at any time, for almost any reason, as long as the reason isn’t illegal (discrimination against protected characteristics or retaliation).

However, there are some exceptions to at-will employment. It doesn’t apply to employees who work under a signed contract, are protected under a union’s collective bargaining agreement, or work in the public sector.

Even in situations when it’s legally permissible to terminate an employee for looking for another job, it’s important to approach this sensitive matter carefully and consider the potential consequences. For example, firing someone for job hunting as opposed to gross misconduct may negatively impact your company culture, and employees might become more secretive, distrustful, or less engaged.

Instead, consider having an open conversation with an employee seeking other opportunities and address any underlying company issues to improve their job satisfaction.

What Are the State Laws on Employees Working Two Full-Time Jobs?

No state laws expressly prohibit employees from working two full-time jobs. But employers can include non-compete or exclusivity clauses in employment contracts, though they might not stand up in court.

This interactive state map provided by the Economic Innovation Group details where noncompete agreements are currently permitted, where their enforceability is limited, and where they are entirely banned .

Multiple Jobs: Key Takeaways

Ultimately, it’s not illegal for employees to work two jobs (even two full-time jobs), but it’s important to take steps to ensure compliance and to protect your company culture. Make sure your company has a policy, and communicate it clearly. BambooHR can help you understand your employees and their needs, to keep your people happy right where they are!