Moonlighting
Working a second job or running a side business outside of your primary employment — sometimes restricted by employer policy.
Moonlighting refers to holding a secondary job, freelance work, or side business alongside primary employment. It's been practiced as long as employment has existed — the name comes from the era when second jobs were literally worked by moonlight, after the primary workday ended. Today it ranges from occasional freelance consulting to running a full side business generating significant income.
Most US employers don't prohibit moonlighting outright, but many have policies requiring disclosure, limiting work for competitors, or restricting use of company resources. Employment agreements — especially for knowledge workers — often include clauses that assign intellectual property created during employment to the employer, which can create complications for side projects in a similar domain.
What Employer Policies Typically Restrict
- Working for a direct competitor — almost universally prohibited.
- Using company equipment, software, or resources for outside work.
- Working during company hours or in ways that affect primary job performance.
- Taking on clients that are or could be company clients.
- Creating intellectual property in the same domain as your employer's work.
- Undisclosed conflicts of interest.
IP Assignment Clauses
Many employment agreements include broad intellectual property assignment clauses stating that any work created during your employment — even on personal time — belongs to the employer if it relates to the company's business or uses company resources. Some states (California, Delaware, Illinois, Minnesota, North Carolina, Washington) limit the scope of these clauses to work actually done using company resources or related to current company projects. Read your employment agreement carefully before starting any side project in a similar domain.
Disclosing a Side Job
When in doubt, disclose. The professional risk of a side project being discovered without disclosure is typically far greater than the risk of disclosing it. Many employers are fine with moonlighting as long as it doesn't compete with the business and doesn't affect performance. Frame the conversation proactively: what you're doing, why it doesn't conflict, and how you'll ensure it doesn't affect your primary role.
Example
A product designer employed full-time at a tech company takes on occasional freelance branding projects on evenings and weekends. She discloses this to her employer per company policy and ensures none of her clients compete with her employer.