State Laws Complicate Employer Discipline Over Side Hustles, Including 2x Minimum-Wage Rule
Updated
Updated · Ogletree Deakins · Jun 26
State Laws Complicate Employer Discipline Over Side Hustles, Including 2x Minimum-Wage Rule
3 articles · Updated · Ogletree Deakins · Jun 26
Summary
Side gigs tied to delivery, rideshare and online platforms are creating new legal risk for employers weighing discipline or firing over moonlighting.
At-will rules still let many companies fire workers absent a contract, but union agreements, individual contracts, noncompetes and written moonlighting policies can limit that discretion.
Employer concerns center on conflicts of interest, trade secrets, brand damage and performance problems such as lateness, absenteeism or using company time and resources for outside work.
California, Colorado and North Dakota protect lawful off-duty activity, while Washington bars restrictions on additional jobs for workers earning less than 2 times the state minimum wage.
Employers are being advised to spell out prohibited outside work in handbooks and document performance issues consistently to reduce discrimination and retaliation claims.