Business policy templates

Moonlighting policy (Indiana): Free template

This moonlighting policy helps Indiana businesses establish guidelines for employees who wish to take on additional employment outside of their primary role. This policy outlines the circumstances under which employees may be permitted to engage in outside work, the expectations regarding conflict of interest, and the procedures for disclosing such activities. By using this template, businesses can effectively manage potential conflicts of interest, maintain employee productivity, and protect company resources, all while allowing employees to pursue additional opportunities.

By implementing this policy, Indiana businesses can create a clear and fair framework for moonlighting, helping to maintain focus on core responsibilities while acknowledging the need for employees to pursue outside work when appropriate.

Moonlighting Policy (Indiana)

Moonlighting Policy (Indiana).docx

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How to use this moonlighting policy (Indiana)

Define moonlighting: Clearly outline what constitutes moonlighting, which generally refers to any employment or business activity that an employee engages in outside of their primary job. This could include part-time work, freelance gigs, or running a business on the side.
Set guidelines for disclosure: Specify that employees must disclose any outside employment to their manager or HR department. The policy should clarify how employees should report moonlighting, including whether they need to submit written notification or request approval for outside work.
Address conflicts of interest: The policy should outline that employees are not permitted to engage in outside work that conflicts with the company’s business interests, competes with the business, or undermines their ability to perform their primary job responsibilities. It should provide examples of conflicts of interest, such as working for a competitor or using company resources for outside work.
Establish expectations for performance: Clearly state that employees must maintain satisfactory performance in their primary job and that moonlighting should not negatively impact their work performance, availability, or commitment to the business. The policy should specify the standards for job performance and how performance will be monitored.
Set boundaries for company resources: Specify that employees may not use company resources (e.g., equipment, software, time, or intellectual property) for moonlighting activities. The policy should emphasize that business assets must be used only for work-related tasks and not for outside employment.
Clarify the approval process: Outline any approval processes required for employees who wish to engage in moonlighting activities. For example, employees may need to submit a formal request to HR or their manager, who will review the potential impact of the outside work before granting approval.
Include limitations on hours and work schedules: Address the potential issue of employees working excessive hours or being unavailable due to moonlighting. The policy should set guidelines on working hours and how the business will manage scheduling conflicts or concerns about employee fatigue.
Address the impact of moonlighting on company image: The policy should clarify that moonlighting should not harm the company’s reputation or involve any activities that could create a negative perception of the business. Employees should be aware of the importance of maintaining professionalism and avoiding any activities that could reflect poorly on the business.
Ensure privacy and confidentiality: The policy should emphasize that employees must not disclose confidential company information or use proprietary data in their outside work. This includes avoiding using company trade secrets or intellectual property in moonlighting projects.
Review and update the policy regularly: Periodically review and update the moonlighting policy to ensure it remains aligned with changes in business operations, industry standards, or legal regulations.

Benefits of using this moonlighting policy (Indiana)

Implementing this policy provides several key benefits for Indiana businesses:

Reduces conflict of interest: The policy helps identify and manage any potential conflicts of interest between employees’ outside work and the company’s business interests, ensuring that employees’ secondary employment does not negatively affect the business.
Improves employee productivity: By setting clear expectations regarding outside work, businesses can help employees balance their primary responsibilities and secondary employment without compromising performance.
Protects company resources: The policy ensures that employees do not misuse company resources, such as intellectual property, time, or equipment, for moonlighting activities, safeguarding the business’s assets and interests.
Maintains a professional work environment: The policy helps prevent any outside employment activities that could harm the company’s reputation or interfere with the business’s objectives, ensuring that employees remain focused on their core job responsibilities.
Fosters transparency and trust: The policy promotes open communication between employees and management regarding outside work, fostering a culture of transparency and trust. Employees can feel confident knowing they are following established guidelines when taking on additional work.

Tips for using this moonlighting policy (Indiana)

Communicate the policy clearly: Ensure that all employees are aware of the moonlighting policy by including it in the employee handbook, onboarding materials, and through internal communications. Employees should understand the guidelines for outside work and the steps required to disclose it.
Review moonlighting requests promptly: To avoid delays, establish a clear process for reviewing and approving moonlighting requests, ensuring that employees receive a timely response regarding their outside work activities.
Monitor employee performance: Managers should regularly monitor employee performance to ensure that moonlighting is not affecting work output or the quality of job performance. The policy should clarify how performance will be assessed and how concerns will be addressed.
Be proactive in addressing concerns: If an employee’s moonlighting is causing issues, such as a conflict of interest or a drop in performance, address the issue promptly. The policy should specify how managers should handle such situations to prevent long-term issues from arising.
Encourage open communication: Employees should feel comfortable discussing their outside work with their manager or HR, knowing that they are following the company’s guidelines. Foster a supportive environment where employees can discuss moonlighting without fear of retaliation.

Q: What is considered moonlighting under this policy?

A: Moonlighting refers to any outside employment or business activity that an employee engages in during their personal time, such as part-time work, freelancing, or running their own business. The policy should specify the activities that constitute moonlighting and what needs to be disclosed.

Q: How do employees disclose their moonlighting activities?

A: Employees should inform their manager or HR department about their moonlighting activities in writing. The policy should clarify whether employees need to request formal approval or simply notify the business of their outside work.

Q: Are there any restrictions on the type of moonlighting employees can do?

A: Yes, employees should not engage in moonlighting activities that create a conflict of interest, compete with the business, or negatively impact their job performance. The policy should specify what types of outside work are prohibited, such as working for a competitor or using company resources for personal work.

Q: Will employees be paid for their moonlighting work?

A: No, employees are not paid by the company for their moonlighting work. The policy should clarify that employees must perform their moonlighting work outside of company hours and should not use company resources for these activities.

Q: Can employees work for a competitor while employed by the business?

A: The policy should specify that employees are not allowed to moonlight for a competitor or engage in any work that directly competes with the company’s business. The policy should outline any restrictions related to conflicts of interest.

Q: Can employees work remotely for other businesses while employed here?

A: Employees may be permitted to work remotely for other businesses as long as it does not conflict with the company’s interests, affect their primary job performance, or use company resources. The policy should establish guidelines for remote work that apply to moonlighting situations.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

Last updated 14 Apr 2025