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Employees’ Side Hustles Raise Legal Questions for Employers

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In today’s increasingly digital world, employers are faced with a number of legal considerations to weigh before they discharge or discipline an employee for having outside employment. 0:00 5:15 Quick Hits Side gigs supported by digital apps are becoming more common. State laws may regulate whether an employer can fire a worker for moonlighting. Most employees are considered at will, but some have job protections from a union contract or individual employment contract. It is becoming more common for employees to have side gigs, particularly in roles like food delivery, ridesharing, online tutoring, social media management, creating content as a social media influencer, and reselling goods on online marketplaces. Several factors govern whether an employer can legally fire or discipline a worker for moonlighting, including whether a union contract, individual employment contract, or noncompete agreement is in place. Without a contract, most employees are considered at will, meaning they...

Washington Supreme Court Significantly Limits Moonlighting Restrictions for Low Wage Employees: Your 4-Step Plan for Compliance

In a first-of-its-kind decision, the Washington Supreme Court took aim at the ability of employers to prevent low wage employees in the state from “moonlighting” or otherwise supplementing their income during their employment, even when doing so would constitute competition. Duty of loyalty and anti-moonlighting provisions will be heavily scrutinized by Washington courts going forward, and employers may need to take swift action to ensure that company policies and employment agreements applicable to low wage employees are enforceable and do not expose the employer to liability. We’ll explain everything you need to know and provide four steps you can take now to help you comply.   Quick Background: Washington State Law on Non-Competes, Moonlighting, and More Washington has severely restricted non-competition agreements  since 2020 when a new state law took effect . This law includes rules on anti-moonlighting policies and provisions: No Moonlighting Restrictions for Low Wage W...