California employees cannot restrict workers from working multiple jobs at the same time. California laws support the unrestrained practice of one’s trade or profession (Business and Professions Code Section § 16600) and protect an employee’s right to engage in lawful conduct outside of work (California Labor Code Section § 96(k)).
Although employers cannot prevent employees from having multiple employments, employers should proactively address legitimate business concerns.
An employer can prohibit employees from engaging in conduct that creates a conflict of interest or the appearance of one. This means that they can prevent current employees from working for competitors, contractors, clients, vendors, etc.
However, in order to do so, employers must ensure their Employee Handbook contains a robust “Conflict of Interest” provision to clarify and address prohibited conduct.
An employer also has the right to prevent an employee from using that employer’s confidential information or trade secrets outside the scope of employment. This should be driven home to employees with a Confidentiality Agreement that clearly defines information considered confidential, proprietary, and/or trade secret, and states that all such information is property of the company. The Employee Handbook should also contain a ‘Confidential Information’ policy that refers to and reinforces the more detailed Confidentiality Agreement.
Multiple jobs can lead to employee performance issues, The Company should have clear ‘Job Performance Standards’ and/or a ‘Code of Conduct’ which includes attendance policies, guidelines for absences and tardiness, a list of prohibited conduct, etc.
Overall, while California employers cannot prevent employees from taking multiple contemporaneous employments, there are ways to minimize potential risks. Review your policies with your employment or business attorney to implement risk
management of these employment issues.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
