San Jose, CA asked in Employment Law for California

Q: Can I be employed by another company while working full-time for my current employer? Do I have to let them know?

Or can I start my own business while being employed?

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2 Lawyer Answers
Brad S Kane
Brad S Kane
Answered
  • Los Angeles, CA
  • Licensed in California

A: Normally, you can work on anything you want during your non-work hours as long as it does not compete with your employer or violate a provision in your employment agreement such as using trade secrets or confidential information. However, if you are an officer or director of the business you may have fiduciary obligations.

Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: Generally there is nothing unlawful about you working more than one job. However there are some things you need to be careful about when doing so.

First, you owe a legal duty of loyalty to your employer(s) which means working for a competitor and directing benefit to one over the other could be unlawful.

Second, working for a competitor might also implicate promises you made in any confidentially agreement or provision.

Third, if you start your own business you cannot do anything on the clock with your employer to establish the business or procure customers while employed. It all has to be done after hours and using your own assets and equipment.

Fourth, know that as an at will employee, you can be terminated for any reason or even no reason at all. If the employer gets the sense that you are too tired or overworked because you are working two jobs, you may well be fired.

Before you go very far down the line with the idea of opening your own business, you should seek out a consultation with a business attorney to help you to avoid the substantial legal land mines you could trip along the way.

Good luck to you.

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