Moonlighting refers to holding multiple jobs with different companies and can have serious implications for the primary employer. Typically, employees holding two or more jobs suffer from fatigue, are more accident-prone, and are overall less productive; not to mention these employees tend to take more sick days and their attendance and punctuality often suffers. Other concerns that arise when employees hold multiple jobs is the security of confidential information, the use of company property to perform outside work, and the potential loss of business should these workers tap into your existing client base.

Although some of the concerns addressed in a moonlighting policy are typically outlined in other policies, such as that of confidentiality, the use of company property, standards of conduct, and attendance and punctuality, a formal policy on moonlighting may be necessary for employees to understand its implications. A well-communicated policy on the issue can serve to protect confidential information, ensure employee loyalty, prevent conflicts of interest, and clarify performance expectations.

Specifically, a moonlighting policy should address the following:

1. Prohibition. Completely banning moonlighting activity is not recommended; the focus of the policy should be on successful job performance and the protection of proprietary information. Some states even have laws impacting an employer’s ability to control employee off-duty activities, so before entirely banning outside employment, make sure you aware of your state’s stance on the issue.
2. Performance. Clearly outline performance expectations and state that outside employment is not an excuse for poor performance, absenteeism, or tardiness. Employees that moonlight are still to be held to the same performance standards as all other employees. Employees that fail to meet job requirements, whether they are holding outside jobs or not, should be subject to disciplinary action.
3. Work schedules. The ability to meet assigned work schedules should also be included within the policy. Employers should make it clear that employees holding outside jobs must continue to perform their normal work requirements within the scheduled workweek and that work assignments and schedules will not be adjusted to accommodate an employee’s outside job.
4. Conflicts of interest. Address employment with competitors, vendors, and clients; due to conflicts of interest, employees should be prohibited from working directly with these individuals. It is recommended that upon hire, all employees sign a non-compete agreement in order to prevent employees from working with competitors.
5. Health & safety. Of course, an employee’s health and safety should also be a concern. Employees juggling multiple jobs typically get less sleep and are more stressed. Fatigue and stress affects not only job performance, but also leaves the employee susceptible to accidents because an employee’s alertness, accuracy, and awareness are often impacted. Employees not abiding by safety standards and those that aren’t taking the necessary safety precautions should be disciplined. Whether they hold multiple jobs or not, your employees’ safety needs to be a top concern.
6. Security of intellectual property. As with a conflict of interest, employees holding outside jobs, whether with a competitor or not, should never share trade secrets, confidential information, or any other proprietary data they have acquired throughout their employment with you. Your policy should provide specific examples of proprietary information that all employees are prohibited form sharing with anyone. Such information may include customer lists, business partnerships or future partnerships, and marketing/business development strategies.
7. Disciplinary action. Your moonlighting policy must be specific and should include what is and what is not permitted. Specify that disciplinary actions will be taken against employees should they violate the policy. Be sure to document all disciplinary measures taken; this will serve to support future employment decisions, such as that of termination should the employee’s performance continue to suffer.

Moonlighting is a potential issue for every company. Although there is no way to outright prohibit employees from holding other jobs, there are safeguards employers can put into place in order to prevent some of the negative consequences associated with moonlighting. Issues such as confidentiality, ethics, and performance should be addressed in order to ward against some of the systemic problems of moonlighting.