Can my employer stop me from running a side business?

What could allow an employer to restrict a side business?

Your employer's ability to limit outside business activities often depends on your employment relationship and any agreements you've signed. Relevant factors may include:

• Non-compete or non-solicitation agreements.
• Conflict of interest policies.
• Confidentiality or nondisclosure obligations.
• Restrictions on outside employment.
• Whether the business competes with your employer.
• Whether the business affects your work performance.

The specific rules vary depending on your job, your employer's policies, and applicable law.

How can you reduce the risk of problems?

Many people successfully run side businesses while remaining employed by keeping clear boundaries between the two. Consider:

• Operating the business outside of work hours.
• Avoiding your employer's equipment, systems, and resources.
• Keeping confidential business information separate.
• Following company policies on outside work.
• Avoiding competition with your employer when required.
• Separating your employment duties from your business activities.

Taking these steps can help reduce misunderstandings and potential disputes.

What to do next…

1. Review your employment agreement and workplace policies.
2. Identify any restrictions on outside business activities.
3. Consider whether your side business could create a conflict of interest.
4. Keep your employment and business activities separate.

What to consider in your specific situation

• Your employment agreement and company policies.
• The type of side business you operate.
• Whether the business competes with your employer.
• Your access to confidential information or company resources.
• Industry-specific laws or professional requirements.
• The impact of the business on your job duties and performance.

Since every situation is different, consider getting more information through Rocket Copilot or an attorney review to move forward more confidently.