Tujunga, CA asked in Employment Law for California

Q: Is it legal in California to work full-time for two competing companies simultaneously? (both 8 to 4).

I plan to work as an insurance adjuster for two companies concurrently, as I believe I can easily manage the workload. My aim is to ensure that working for both is legally permissible in California and that the worst-case scenario, if any, would simply be the possibility of being laid off from one position.

Related Topics:
1 Lawyer Answer
James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered
  • Sacramento, CA
  • Licensed in California

A: In California, it is generally not illegal to work for two companies simultaneously, even if they are competitors. However, there are several important legal and practical considerations to keep in mind:

1. Employment contracts: If you have signed an employment contract with either company that includes a non-compete clause or exclusivity agreement, working for a competitor could be a violation of your contract and lead to legal consequences, including termination.

2. Conflict of interest: Working for two competing companies could create a conflict of interest. You must ensure that you do not share confidential information between the two companies or make decisions that benefit one employer at the expense of the other.

3. Company policies: Even if your employment contracts do not prohibit working for a competitor, the companies may have internal policies that restrict such arrangements. Violating these policies could lead to disciplinary action or termination.

4. Performance and time management: Working two full-time jobs concurrently may impact your performance and ability to meet the expectations of both employers. If your performance suffers, you could face negative consequences, including termination.

5. Overtime laws: In California, non-exempt employees must be paid overtime for hours worked over 8 in a day or 40 in a week. If your combined hours exceed these thresholds, you may be entitled to overtime pay from one or both employers.

While it may not be strictly illegal to work for two competing companies in California, doing so could expose you to various legal and professional risks. It is advisable to review your employment contracts, discuss the situation with both employers to ensure transparency, and carefully consider the potential consequences before proceeding with this arrangement.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.