How to know when you should care about moonlighting

More than five percent of employed Americans hold more than one job, according to the U.S. Bureau of Labor Statistics. For employers, outside employment may raise concerns related to employee performance, competition, and confidential information. A carefully drafted outside-employment policy can protect legitimate business interests without unnecessarily controlling employees’ conduct during their personal time.

What is moonlighting?

“Moonlighting” is when an employee holds a second job, performs freelance work, or operates a business while continuing to work for a primary employer. Employees may engage in moonlighting for several reasons, such as to supplement their income, develop new skills, or pursue personal interests. Moonlighting isn’t new, but you may encounter it more often as employees seek additional income or use online platforms to offer freelance or other professional services. The challenge for employers is balancing employees’ interests in pursuing outside work against the need to protect legitimate business interests.

Generally, moonlighting doesn’t automatically create a workplace problem. For example, an employee may work weekends for an unrelated business or operate a side business without affecting the employee’s primary job. In some cases, moonlighting may even benefit the primary employer, such as when the employee develops new skills, expands professional experience, or gains knowledge that improves performance.