Many people today are looking for extra income, and having a side hustle is more common than ever. Whether it’s freelancing online, driving for a ride-share service, or starting a small business, balancing a side hustle with a full-time job can offer more financial security and new opportunities. It is possible to get fired for having a side hustle, especially if it interferes with your work performance, breaks workplace policies, or creates a conflict of interest.
Understanding the risks can help job seekers decide the best way to manage a side hustle while staying employed. Knowing your employer’s rules and following them is important. Learning how to share or keep private your extra work, and how to manage your time, can help you avoid problems.
Key Takeaways
- It is possible to lose your main job because of a side hustle.
- Company rules and job performance play a big role in job security.
- Smart planning and clear boundaries help keep both jobs safe.
Can You Get Fired For Having A Side Hustle?
A side hustle can help someone earn extra money, but it may also put their main job at risk. Many employers have rules about second jobs, and some even have legal agreements that may stop an employee from starting a side business.
Employment Contracts And Workplace Policies
Many employees sign an employment contract when they start a new job. This contract may have important rules about having a side hustle or working elsewhere. Some companies include a section about second jobs or outside businesses, strictly limiting what is allowed.
Workplace policies often cover issues like time management and use of company resources. For example, using your work computer for your side business is almost always against the rules. If an employer believes the side hustle is affecting job performance or using work hours, it could lead to warnings or being fired.
Anyone planning to start a side business should review their employment contract and employee handbook carefully. Look for any policies about outside work or conflicts. This can help avoid problems or even job loss.
Tip: Save a copy of the workplace policy for quick reference. When in doubt, ask your manager or HR about company views on side businesses.
Conflict Of Interest And Competition
One major risk of having a side hustle is a conflict of interest. This happens when the side project competes directly with the main employer, uses similar business ideas, or involves the same clients or customers. Employers may view competition as a serious threat.
Conflicts can also happen if an employee uses insider knowledge or company resources for their side business. This is almost always a violation of trust and can result in being fired quickly. If the employer can show that the side job hurts their business, they may take legal or disciplinary action.
Here’s a quick checklist for job seekers to avoid conflicts of interest:
- Do not work on side business during company hours.
- Never use company resources, like email or software, for a side hustle.
- Avoid contacting company clients or co-workers about your side business.
- Tell your employer about any possible conflict if required.
Employers may fire someone for conflict of interest, especially in states with at-will employment. You can read more about real experiences and examples on having a side hustle and workplace competition from this discussion on Reddit.
Non-Compete Clauses And Legal Considerations
Some employment contracts include non-compete clauses or NDAs (non-disclosure agreements). A non-compete stops employees from working in a similar business or starting a competing side venture for a set time period. Breaking this agreement can lead to getting fired and even facing legal action.
Non-disclosure agreements protect company secrets. Employees who use insider information for their side hustle can be sued or lose their primary job. These agreements are common in technology, finance, and creative jobs.
Not all non-compete or NDA agreements are legal in every state. Laws can change, and some states limit how strict non-competes can be. Employees should ask a lawyer if they are not sure what their contract means.
A good way to check if a non-compete or NDA may affect a side hustle is to:
- Read the contract line by line
- List all activities that could be affected
- Contact HR or a legal expert if unclear
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Managing A Side Hustle While Employed
Balancing a side hustle with a regular job adds more to your daily schedule and can raise questions about job performance and professional reputation. Making informed decisions and handling your online presence with care helps reduce risk and avoid misunderstandings.
Potential Impact On Job Performance
Taking on a side hustle, also called moonlighting, may stretch a person’s time and energy. If not managed well, work output can drop to an average or even poor level. Negative effects on job performance may lead to discipline or firing, especially if performance reviews mention missed deadlines, mistakes, or low engagement.
Employers often notice changes in work habits. A visible dip in quality or missing important meetings draws concern from supervisors. Some workplaces have policies on outside work, even when the second job is unrelated.
Being open with managers is wise, but only if the company allows outside business activities. Tracking daily hours and building a schedule can help balance both jobs. Using tools like planners or digital calendars allows workers to allocate enough focus to both roles without burnout.
Seeking Legal And Professional Advice
Some workers do not realize that holding a side gig may have legal or contract-based limits. Employment contracts, such as non-compete clauses, could restrict certain types of side work or require disclosure to an employer. Talking with an employment attorney makes it easier to understand these limits and avoid costly mistakes.
Companies may view certain side jobs as a threat if they believe it affects their business or violates contract terms. An attorney can review contracts, explain moonlighting rules, and help find safe ways to earn extra income without breaking agreements. Always seek advice if unsure about what is allowed.
Clear communication and legal guidance can prevent job loss or lawsuits. Good education about workplace rules gives peace of mind and protects employment status.
Professional Conduct And Online Presence
Side hustles often require creating or updating a LinkedIn profile, social media page, or small business website. How someone presents themselves online is important. Employers sometimes check digital footprints and could see side activities that are not mentioned at work.
Maintaining professional conduct online prevents misunderstanding. For example, LinkedIn profiles should avoid direct mention of the side gig if the employer has strict policies or if there is a risk of conflict of interest. It’s often better to highlight skills or experience gained without naming the business.
Building a strong, professional profile can open doors for future jobs or freelance work. To build your resume with RoboApply or create a professional cover letter, visit coverletter.robo-apply.com for free templates tailored to job seekers. Always review privacy settings and keep all public content respectful and work-safe.
Frequently Asked Questions
Laws and workplace rules mean that some side hustles could put jobs at risk if they compete with an employer, hurt job performance, or break company policies. It’s important to understand what might cause a conflict and what steps to take to avoid problems.
What are the potential conflicts of interest with side hustles that could lead to termination?
A side hustle may be a problem if it competes directly with a primary employer, uses the company’s customers, or takes business opportunities away from the employer. Conflicts can also happen if the side job uses company time or resources, or if it creates a situation where decisions at work could be influenced by outside interests.
Employers are more likely to take action if they believe the side job is affecting loyalty, judgment, or workplace focus. In some cases, even the appearance of a conflict can lead to discipline or being fired. See more about how conflicts of interest can impact your job at this Quora discussion on side work.
Are there specific company policies that often restrict employees from engaging in side gigs?
Many companies have written policies about side employment or business activities. These policies often restrict side jobs that compete with the company, use proprietary information, or interfere with an employee’s work schedule. Some employers require workers to get approval before starting any outside job.
It’s a good idea to review your employee handbook or speak with HR before taking on a side gig. Company policy details can help avoid mistakes that could lead to discipline or firing.
How might a side hustle impact my performance or obligations at my primary job?
A side hustle can cause problems if it leads to tiredness, reduced focus, or missed deadlines at the main job. Using employer time or resources for side projects is also an issue. Consistent lateness, low productivity, or not meeting job responsibilities may be grounds for termination.
If you’re applying for new jobs and want to highlight your ability to manage multiple roles, tailor your resume to show time management and results. To help with this, you can optimize your resume using tools like RoboApply.
What legal considerations should one be aware of when maintaining a side job alongside full-time employment?
Most U.S. states have “at-will employment,” which means workers can be fired for almost any reason, including having a side hustle, as mentioned here. Some contracts or laws might also prevent certain activities, such as non-compete clauses or confidentiality agreements.
It’s important to read your job contract and any non-compete or moonlighting policies. If you are unsure, getting legal advice is wise. Always check the legal rules before starting any side business.
How can handling confidential information affect employment if I have a side business?
Using or sharing confidential information from your main employer for your own side business is a clear violation of most company policies and can cause immediate termination. Even if the information is not shared, using inside knowledge for personal gain may violate trust.
Employers can pursue legal action if confidential or proprietary data is leaked or misused. Employees should keep work data and resources separate from any outside business.
What steps can I take to ensure my side activities remain compliant with my current employment contract?
To stay compliant, read your employment contract and any side job or non-compete policies closely. Get written approval from your employer if required. Never use your employer’s resources, clients, or confidential information for your own side hustle.
It also helps to track your hours and job duties so you can show you’re meeting all requirements. If you need a template for updating your resume with new skills from your side hustle, build your resume with RoboApply to make your applications stand out.
