Overemployment: Is It Legal to Work Multiple Jobs at the Same Time?

With millions of employees now working entirely remotely, a new trend has emerged: overemployment, or holding multiple remote jobs at the same time without telling the employers. Thousands of workers are sharing tips online on how to manage multiple jobs, with many seeing it as a way to earn extra money and protect themselves if one job ends unexpectedly.

But is overemployment legal? And can your employer(s) fire you if they discover the truth? Here's what you need to know.

Overemployment: Legal or Illegal?

Overemployment isn't by itself illegal, and in most cases any trouble that arises will be of a civil rather than a criminal nature. But if you commit fraud—for example, by billing two companies for the same hours—and your company decides to press charges, you could be subject to criminal proceedings.

Here are a few factors that could influence what type of trouble could arise.

Employment Contracts

Many companies have non-compete clauses, exclusivity agreements, or conflict of interest policies that prohibit working for competitors or require disclosure of additional employment. Violating these contractual obligations could be grounds for termination or even a lawsuit if you damaged the company's bottom line.

Fraud

If your employer discovers that you've billed multiple companies for the same hours or used one company's resources for another job, you'll almost certainly be terminated, potentially sued, and could face criminal theft or fraud charges.

Tax Obligations

The IRS doesn't have a problem with taxpayers working multiple jobs, but it does have a problem with people who fail to report income. No matter how many jobs an individual is working, all income must be reported or civil or criminal consequences can arise.

Can You Be Fired for Working a Second Job?

Unless you have an employment contract that limits your employer's right to fire you, you are most likely an at-will employee. (Montana employees are the exception, as it's the only state that protects employees from being fired without cause.)

An at-will employee can be fired at any time, as long as the reason isn't illegal. Your employer can't fire you because of your race or in retaliation for reporting unsafe working conditions, for example. But you generally can be fired for a wide variety of reasons, including for holding multiple jobs.

Off-Duty Conduct Laws

Some states have laws that prohibit employers from taking action against employees based on their legal off-duty conduct. The language and protections offered by these laws vary from state to state. Some apply only to an employee's use of legal products, such as tobacco. Others apply more broadly to any legal activities.

Depending on the circumstances, an off-duty conduct law might limit your employer's right to fire you for working a second job, unless it conflicts with or affects your work.

However, many states do not have broad off-duty conduct laws. If you work in one of these states, then your employer is probably free to fire you for working a second job.

Why Employers Care About Second Jobs

Why should an employer care about an overemployed worker as long as they're getting the job done? From a company's perspective, the concerns go beyond just task completion.

Employers worry about divided loyalty, potential conflicts of interest, and unauthorized sharing of proprietary information between companies. If, for example, you work for a test preparation company during the day and run your own side business providing individual test coaching, your employer might think that you're taking customers away from the company—and using your job with the company to build a client list.

In addition, many businesses pay salaried employees for a full-time commitment that includes availability during core hours and the capacity to take on urgent projects when needed–something that might be compromised when juggling multiple jobs. There's also the question of whether someone working two jobs at the same time can sustainably maintain quality performance over time.

Finally, there's the trust factor: companies often view undisclosed multiple employment as a breach of workplace transparency that can damage the employer-employee relationship.

Company Policies on Working Second Jobs

For these reasons, some companies have adopted policies about working multiple jobs, even if the employee is only moonlighting at night. For example, a company might prohibit second jobs altogether. Or, a company might require employees to report any outside work to their manager or the human resources department, so the company can decide whether to allow the second job.

Some companies take a more limited approach by prohibiting only outside work that poses a conflict of interest or competes with the company.

If you have signed a noncompete contract with your employer, that might also limit your right to moonlight, especially for competing companies. A few states (including California) don't allow noncompete contracts. In most states, however, a court will hold you to the terms of a reasonable noncompete, including a promise not to start or work for a competing company.

Contact an Employment Lawyer

If you believe you were unfairly fired for working a second job, you should talk to an experienced employment attorney. If your second job competes with your first job or creates a conflict of interest, you likely don't have a good claim.

Otherwise, however, you might have legal grounds for a lawsuit, especially if your state has an off-duty conduct law or if you were treated differently from other employees. If, for example, men were routinely allowed to work second jobs but women were fired for it, you might have a gender discrimination claim.

A lawyer can help you sift through the facts and figure out your legal options.