Many employers list in their handbooks that outside employment is either prohibited (which may not be lawful) or needs to be approved by the company before being undertaken by a current employer. There are various reasons for this, such as a potential conflict of business interest. The law on this issue varies from state to state. In California, for instance, an employer generally cannot restrict an employee's right to hold a second job unless the work is in competition with the first job and the first employer would suffer substantial disruption of the business. Check with your state's Labor Department on how this issue is handled in your locality.

(Reviewed 9-08)