What is the law regarding allowing an employee to work for a competing company?

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What is the law regarding allowing an employee to work for a competing company?

One of my directors moonlights for another company same industry, non-competing though on a 1099 basis. I think it is fine and it helps him supplement his income; he does a phenomenal job for me. The Regional VP just found out and is putting pressure on the situation. Does the RVP has the legal right to prohibit my manager from continuing this scenario?

Asked on May 12, 2018 under Employment Labor Law, California

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Absent an employment contract or union agreement to the contrary, a company can prohibit a worker from outside employment. The fact is that most work arrangements are "at will" which means that a company can set the conditions of the workplace much as it sees fit (absent somme form of legally actionable discrimination).


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