Employees may work for two different companies simultaneously as long as they can manage their time well, perform their jobs well, and pay any necessary income taxes on both of their salaries.
However, it does not apply to those who work in factories because, as stated in section 60 of the 1948 factories act, double employment is not permitted.
Please read on for more information.
Is It Legal to Work Two Full-Time Jobs?
Although working a second job is legal, your current employer may consider it a breach of your employment agreement. Check your employment contract and company policy to see if moonlighting is permitted by the company you currently work for. Asking the Human Resources (HR) division might be a good option if you can’t find anything to make sure you’re not going against any employment agreements.
Furthermore, if there are conflicts of interest, you might be accused of leaking client information or trade secrets and breaking privacy laws. Working in the same industry as your current employer will inevitably lead to conflicts of interest.
Even so, each state has its own set of employment laws. Consider consulting a law firm to confirm that you are permitted to pursue multiple opportunities in accordance with local laws and your employer’s policy if you want to be completely safe.
Tips on Dual Employment
Don’t Work in Two Companies That Are Competitors
You run the risk of losing your job if you work for companies that are engaged in similar industries. Employers never want their staff to work for rival businesses.
Work Hours Should Not Be the Same
Because it will reduce your productivity, which is something that businesses dislike, if you work both jobs at the same times, you risk losing your job. Therefore, there shouldn’t be any overlap between the working hours of the two jobs. It should be completed sequentially.
Don’t Leak Your Company Secrets
Some of your coworkers and superiors might be envious of you if you work two jobs at once, so they’ll wait for an opportunity to point out errors in your work. Therefore, it would be best to avoid talking about your other job in any case and, more importantly, to avoid disclosing any trade secrets of the other company.
Start Your Own Business/ Work as a Freelancer
Finally, working two jobs simultaneously uses a lot of energy and will eventually harm your health. Therefore, it would be wiser to launch your own company or work as a freelancer in addition to your regular job.
Some Things to Consider
You might be tempted to start looking for a new job right away now that you are aware that moonlighting is permitted by federal law. There are a few things you need to know, though, before accepting that offer or even applying for the job.
Potential Conflict of Interest
One of the most likely obstacles to your side business is conflict of interest, so you should pay close attention to this area before seizing an opportunity.
A perceived conflict of interest could result in the disclosure of customer or trade secret information, which could put your employer in jeopardy legally or financially. Your employers would have just cause to fire you or even take legal action if there was the slightest hint of a conflict of interest.
To prevent a conflict of interest, avoid working with the customers, suppliers, or rivals of your current employer. There would be little chance of conflict, for instance, if you were employed by a software development company and moonlighted as an Uber driver or instructor of development in evening classes. If you provided development services to the clients of your current organization as a freelancer, it would be different.
To determine whether you can proceed, think about telling your employer about your plans for a side business. You will find it simpler to disclose potential conflicts of interest in the future if there was an open dialogue.
Tax Consequences
It only makes sense that there would be more calculations and payments needed when tax season rolled around since you were adding a new source of income.
Depending on the type of business you have, reporting your additional payment requires you to complete a different tax form. As soon as you earn $400 from a side job as an independent contractor or freelancer, in addition to your income taxes, you must pay a self-employment tax. Short-term project freelancers should carefully gather and store their business records so they can be consulted when tax season comes around.
If you don’t do this, you might get into a big legal fight with the IRS. Consider getting a tax preparer to assist you in managing your taxes in order to avoid this and to clarify how much you must pay.
Employer Policies
You are still subject to the terms of the employment agreement you made with your current employer even if the law doesn’t forbid you from taking on a second job.
Depending on your company’s policies, the limitations and options might be different. Such restrictions are typically outlined in the employee handbook or employment contract. If you can’t find any information about beginning a second job anywhere, you can also speak with someone in HR to confirm that it is permitted by your company.
Some businesses forbid employees from taking on additional work because it might compromise their productivity at their current position. For instance, the business might forbid you from accepting additional opportunities if you work in a highly stressful environment. Increased workloads may lead to burnout and impair your performance.
To avoid potential conflicts of interest, employer policies may also specify the types of side jobs you are permitted to hold. Finally, some companies may even encourage you to take on a second job to diversify your skill set. These businesses might provide additional advantages, like a more accommodating schedule, for those who have side businesses.
State Laws
State laws vary widely, just like employer policies. Non-compete clauses that employers may include in their company policies are primarily governed by state laws.
Non-compete agreements prevent current or former employees from beginning or entering a profession that is similar to that of their employers after leaving a company or while they were employed there.
Non-compete clauses are not permitted by law in some states, including North Dakota and California, with some exceptions. Non-compete agreements for low-wage employees are forbidden in Massachusetts and Washington. Other states, like New York, restrict the duration and breadth of non-compete agreements to a reasonable amount of time. Last but not least, non-compete clauses that employers can impose are unrestricted in states like Florida and Georgia.
Am I Required to Tell My Employer About My Second Job?
This answer is entirely based on the policy of your company and the agreement you made with your company. Most of the time, you are not required to inform anyone at your present employer that you will be accepting a second job offer. Nevertheless, we advise you to be as open and honest as you can to avoid any future misunderstandings with the business.
Additionally, the internet and social media will probably let your employers know. It would be much better for both employers if they learned about your side business directly from you rather than through LinkedIn.
Many employers don’t mind if their employees work at other places as long as it doesn’t interfere with their performance at their primary position and there are no conflicts of interest. A more flexible schedule that enables you to better manage your time to accommodate both jobs might come about as a result of consulting your primary employer and your new employer, in addition to transparency.
Any potential conflicts of interest between the two businesses may be revealed by discussing your second job with your primary employer. While moonlighting is legal in the United States, there is a conflict of interest law. The relevance of this issue increases if both businesses operate in the same sector. You probably broke the employment agreement you made when you started your primary job if you work for direct rivals. There is no way to demonstrate that you didn’t use your insider knowledge to profit one of the companies because you could learn sensitive and confidential information from both jobs.
However, some businesses do have policies against moonlighting. To avoid problems if either party finds out that you’ve been working two jobs, think about asking your HR about the company’s policy on moonlighting beforehand.
Can My Employer Fire Me for Having Another Full-time Job?
Your employer can fire you for having another full-time job – even if it doesn’t interfere with your employment contract.
This is referred to as a termination without cause. In Canada, companies can let employees go for any reason, as long as:
- They are provided full severance pay
- The reasons for their dismissal are not discriminatory
Your employer may be able to terminate your employment for good reason if your employment contract expressly prohibited you from holding down another full-time job.
If you are fired in this manner, you will not receive a severance package and will not be eligible for Employment Insurance (EI) benefits.
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