These days, I hear a lot of people around me talking about starting a second job, or side hustle. The problem is, everyone seems to ask one important question after bringing it up.

That question is whether they need to inform their main employer about it. Many are worried they might face backlash if they do, or that they might get caught later if they don't say anything.

To get straight to the point, there is no federal law in the U.S. that requires you to inform your employer about a second job. This is a clear fact.

Most employment relationships in the U.S. operate on an at-will basis. Unless there are specific contractual provisions, both the company and the employee can generally move freely.

However, there is an important aspect that many overlook. Just because the law doesn't require it doesn't mean that internal company policies are also free from restrictions.

In fact, many employee handbooks include specific provisions regarding outside work or moonlighting. I recommend pulling out your contract and searching for these terms.

If your company has such provisions, they may require you to obtain written approval before starting a second job. This is especially common in finance or security-related industries.

If a company has no such provisions at all, the situation changes. In principle, this means you are not legally obligated to inform them.

However, there is a critical point to be cautious about: conflicts of interest.

If you take a second job with a company that competes with your main job, or if you use customer information or confidential data obtained from your main job, the situation changes completely. This can be problematic even without contractual provisions.

The same goes for situations where your performance at your main job is affected. If your second job leads to frequent tardiness or decreased focus, the company can take action based on performance issues, not the second job itself.

In states like California, this aspect is more clearly protected by law. California is relatively advanced in terms of employee protections in the U.S.

According to California Labor Code Section 96(k), employees cannot be fired or demoted for lawful activities conducted outside of work hours. A second job falls under this category.

However, there are exceptions to this protection. If a second job genuinely harms the company's legitimate business interests or disrupts work, it may not be protected.

For executives or high-ranking employees with access to trade secrets, these exceptions are applied more strictly. This means they need to be much more cautious than lower-level employees.

Now, let's take a look at how many people are actually working second jobs these days. According to a survey conducted by Bankrate this year, 27 percent of U.S. adults reported having a second job.

This figure is somewhat surprising. Compared to 36 percent last year in 2024 and 39 percent the year before in 2023, it has actually decreased.

The income from second jobs has also decreased. The median monthly income is around $200, with an average of about $885.

Interestingly, the spending habits of those who earn this money are noteworthy. Forty-one percent of respondents reported using the money not for living expenses or paying off debt, but for discretionary spending.

This suggests that second jobs are shifting from a desperate choice for survival to an option for extra comfort. Of course, we must not forget that many people still work two or three jobs due to living expenses.

So, let's summarize how to approach this practically. The first thing to do is to pull out and read your employment contract and handbook again.

Check if there are provisions that include terms like moonlighting, outside work, or conflicts of interest. Most of the answers will be found here.

If there are provisions, it's much safer to follow the written approval process as outlined. It's better to inform them in advance than to be caught later for doing it secretly.

Even if there are no provisions, I recommend avoiding industries or competitors that overlap with your main job. Even if it's legally fine, there's no reason to invite unnecessary misunderstandings.

You should also consider tax issues. If your second job is freelance income in the form of a 1099, you'll need to set aside quarterly estimated taxes to avoid headaches with the IRS later.

Those working on a visa should pay special attention. Work visas like H-1B have restrictions on income activities outside of the sponsoring company, so it's advisable to consult an immigration attorney before considering a second job.

Personally, I prefer to inform my employer slightly rather than completely hiding it. I believe it's better to deal with a little discomfort now than to break trust later.

However, this is just my personal preference; it's not the right answer for every situation. The most accurate approach is to first examine your contract and company culture before making a judgment.

Everyone has different reasons for considering a second job, but just checking the law and the contract can lighten your mind significantly. I hope today's discussion helps you make that judgment.