California’s moonlighting law refers to legal protections and restrictions surrounding an employee’s ability to work a second job outside of their primary employment. Our LA County employment attorneys are here to help fight for your rights in California, contact us today.
Moonlighting Is Generally Legal in California
California law does not prohibit employees from working a second job, unless that work directly violates a lawful employment agreement. The default position under California law supports a worker’s right to earn income from multiple sources, provided the additional work does not interfere with their primary job or breach duties of loyalty and confidentiality.
Employment Agreements and Conflict of Interest Policies
Employers can include moonlighting restrictions in written employment agreements, particularly when secondary work:
- Competes directly with the employer’s business
- Causes a conflict of interest
- Uses the employer’s confidential information or resources
- Violates a non-compete or non-disclosure agreement
However, California enforces these restrictions narrowly. The state prohibits most non-compete agreements under Business and Professions Code Section 16600, which invalidates any contract that restrains someone from engaging in a lawful profession or trade. Courts typically strike down broad moonlighting bans unless the employer can show the second job clearly harms their business interests.
Duty of Loyalty and Use of Employer Resources
Even without a written agreement, employees owe a duty of loyalty to their employer. This means an employee cannot:
- Use company time to work on a second job
- Divert clients or resources to another business
- Share or misuse confidential information
For example, if an employee uses company equipment or confidential data to support a side business, the employer may have grounds for discipline or termination.
Wage and Hour Implications
Employees working two jobs must still comply with wage and hour laws. Employers must ensure that employees:
- Receive proper overtime pay
- Take required meal and rest breaks
- Do not exceed legal work hour limits (especially for certain industries)
Although one employer is not responsible for tracking hours worked at a second job, employees must accurately report time worked to avoid violations of labor laws.
Anti-Retaliation Protections
Employers cannot punish or terminate employees solely for holding a second job unless there is a clear conflict of interest or breach of contract. If an employer disciplines an employee without a legitimate business reason, the employee may file a complaint under California labor laws. Retaliation for lawful moonlighting may result in legal liability.
Examples of Lawful and Unlawful Moonlighting Policies
- Lawful: A tech company prohibits software engineers from working for competing firms while employed. The policy is narrowly tailored and protects proprietary information.
- Unlawful: A retail store bans all employees from holding second jobs, regardless of industry. This blanket policy may violate Section 16600.
What Should I Do if I Am Fired or Moonlighting?
If your termination appears retaliatory for moonlighting or overly broad, you may have legal grounds for a wrongful termination claim. First review your employment contract and company policies to determine if your secondary job violated any written agreements. Gather documentation such as termination notices, emails, or performance reviews to assess the employer’s stated reasons.
Consult a Los Angeles wrongful termination lawyer as soon as possible. They can evaluate your situation and help you file a complaint with the California Labor Commissioner if your rights were violated.