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Run: Outside Employment and Moonlighting Policy

Outside Employment and Moonlighting Policy template for disclosing second jobs, checking conflicts, and setting approval rules that protect job performance, ...

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Purpose

This policy establishes a good-faith process for employees to disclose outside employment and moonlighting so the company can review potential conflicts of interest, protect confidential information, prevent interference with job duties, and ensure compliance with applicable law. This policy is intended to support consistent decision-making and is not intended to restrict lawful off-duty conduct, protected concerted activity under **NLRA Section 7**, or rights protected by applicable wage and hour, leave, disability, or anti-discrimination laws.

Scope

This policy applies to all employees, including full-time, part-time, temporary, exempt, and non-exempt employees, unless a collective bargaining agreement, written employment agreement, or applicable law provides otherwise. **California employees:** This policy will be applied consistent with California Labor Code protections for lawful off-duty conduct and other applicable state law limits on employer control over off-duty activities. **All jurisdictions:** Where state or local law provides greater protection than this policy, the law controls.

Definitions

For purposes of this policy: - **Outside employment** includes any secondary job, freelance assignment, consulting engagement, gig work, self-employment, or ownership interest that involves active work. - **Moonlighting** means working another job or business during non-working time. - **Competition** means work for a competitor, customer, vendor, or business that offers substantially similar products or services. - **Interference** means any impact on attendance, punctuality, scheduling, fatigue, performance, safety, or the completion of essential functions. - **Confidential information** includes non-public business, customer, employee, financial, technical, or strategic information. - **Protected activity** includes rights protected by the NLRA, FMLA, ADA, Title VII, and other applicable laws.

Policy Statement

Employees may engage in outside employment only if the activity does not create a conflict of interest, does not interfere with job duties or performance, does not use company time or resources, and does not disclose or misuse confidential information. Employees must not: - Work for a competitor, customer, vendor, or other business relationship that creates an actual or potential conflict of interest without written approval. - Perform outside work during scheduled working time, on-call time, or while using company equipment, systems, or confidential information. - Allow outside employment to cause fatigue, attendance problems, safety risks, or performance issues. - Represent that they are acting on behalf of the company in any outside business. - Engage in outside work that violates any non-disclosure, non-solicitation, conflict of interest, or other lawful restriction in a signed agreement. The company will review requests in a consistent, non-discriminatory manner and will not base decisions on protected characteristics under **Title VII of the Civil Rights Act of 1964** or on disability-related assumptions. If an employee requests an adjustment related to a disability, the company will engage in the **interactive process** and consider **reasonable accommodation** as required by the **ADA**.

Procedure

1. **Disclosure required before starting outside work.** Employees must submit a written outside employment disclosure before accepting or beginning outside work. 2. **Information required.** The disclosure must include the outside employer or business name, nature of work, hours, location, expected duration, whether the work is competitive, and whether company equipment, data, or contacts will be used. 3. **Conflict check.** HR, the employee's manager, and/or Compliance will review the request for conflicts of interest, schedule interference, confidentiality concerns, safety issues, and any impact on the employee's ability to perform essential functions. 4. **Approval decision.** Approval must be in writing and may include conditions such as no overlap with scheduled hours, no use of company resources, no solicitation of company customers or employees, and periodic re-review. 5. **Ongoing duty to update.** Employees must promptly report any material change in outside employment, including changes in hours, duties, clients, ownership, or competitive relationships. 6. **Reassessment.** The company may withdraw approval if the outside work later creates a conflict, performance issue, attendance concern, or legal/compliance risk. 7. **Recordkeeping.** HR will maintain disclosures and decisions in a confidential file with access limited to personnel with a legitimate business need.

Roles & Responsibilities

**Employees** must disclose outside employment in advance, answer review questions truthfully, comply with any conditions of approval, and immediately report changes. **Managers** must review requests objectively, document any operational concerns, and escalate potential conflicts or performance impacts to HR. **HR / Compliance** must perform the conflict check, ensure consistent application, maintain records, and coordinate any required legal review. **Policy holder / business leaders** must ensure this policy is applied in a good-faith, non-discriminatory manner and that decisions are based on legitimate business needs.

Compliance, Restrictions, and Discipline

Violations of this policy may result in corrective action up to and including termination, subject to applicable law and any collective bargaining agreement. Examples of violations include: - Failing to disclose outside employment before starting work. - Providing false or incomplete information during the review process. - Using company time, equipment, systems, or confidential information for outside work. - Engaging in outside work that creates a conflict of interest or materially interferes with job duties. - Ignoring conditions of approval. **FLSA note:** This policy does not alter wage and hour obligations, including overtime pay requirements for non-exempt employees when work is performed for the company. Outside employment time is not company compensable time unless the company directs, controls, or suffers/permits work for the company under applicable law. **NLRA note:** Nothing in this policy is intended to prohibit employees from discussing wages, hours, or working conditions, or from engaging in other protected concerted activity.

Review and Revision

This policy will be reviewed at least annually and updated as needed to reflect changes in law, business operations, or compliance expectations. The company may revise this policy at any time, provided that changes will be communicated to employees in accordance with applicable law.

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