Moonlighting, also known as side hustling, or having a second job, has become increasingly popular in the last decade. 

According to the Bureau of Labour Statistics, nearly 5 million Americans have a second job in addition to their main one, as many people agree that having a second job can be quite beneficial in today's economy where the cost of living is so high. Moonlighting, or holding another job on top of your existing one, is an excellent way to increase your income and enhance your knowledge. 

However, while moonlighting can have many benefits, it also comes with a few risks and considerations that are important to think about before you take on that second gig. 

For instance, if you work for two jobs, moonlighting could affect the quality of work you put in at your first job because your efforts will now be split between two jobs instead of just one, which means less efficiency and lower performance. 

To guide you better. In this blog, we will walk you through some of the most discussed and asked questions about moonlighting policy, such as what it is, is moonlighting illegal or legal, and the benefits and risks involved with it that will help you decide whether or not moonlighting might be worth it for you.

So without any further ado, let's get started with our first and basic question.

What is Moonlighting?

Moonlighting is the term for working a second job along with your main job, or earning some extra money on top of the fixed salary. This type of work usually happens at night and is also called moonlighting because the moon is often out when people work this way. 

Moonlighting policy can be helpful for people who need extra income, who want to supplement their main job with a second job, or who enjoy taking up new challenges by working in a field with which they are already familiar. For example - if you are working as a full-time accountant in your day job, then moonlighting as a part-time accountant for other similar business will make you extra money.

Moonlighting can offer various benefits that may make it worthwhile for you to explore opportunities for better exposure and skills enhancement. 

Why do People Moonlight?

For many people, moonlighting is a necessity rather than an option. Moonlighting can provide a much-needed additional source of income, allow them to explore different careers, or simply allow them the flexibility to explore other interests without leaving their current full-time jobs.  

People moonlighting often find that they have more job security and bargaining power in terms of negotiating raises and new positions at their regular job as they prove themselves worthy and know there are ample options available to them if they need them. 

Moreover, moonlighting also helps people to stay on top of the changes in their industry by exposing them to new processes, skills, and techniques, allowing them to get better at their primary job and deliver the best service possible.

Important things to consider before committing to moonlighting

Before committing to moonlighting, you need to consider the following three things. 

1) Do you have the necessary skills and time for the extra job- 

Before you start your side gig, it's important to evaluate if you can feasibly add another task to your already busy schedule. Do you have the energy to spend on an added task? Does your schedule allow you to dedicate the time to this new responsibility?  

Once you have answers to all these questions, give a quick evaluation of your skillset and know whether your skills align with your new job. If yes, you can move forward with moonlighting, but if not, then it's better to rethink your decision. 

2) Do moonlighting interfere with your day job-

It is also vital that before you take up moonlighting, you make sure that there will be no interference in your performance at work or with the duties at hand. 

Sometimes what seems like a simple second job may require more time and effort than your primary job, which can lead to increased stress and burnout, due to which your performance at your full-time job can suffer and might even lead to losing your main source of income altogether. That's why always be aware that moonlighting should never hinder your main duty, as you need to ensure that you're doing both jobs well and maintain a balance between them. 

3) Does your employer allow moonlighting-

Before taking up side job check your company’s moonlighting policy, the last thing to remember is that you need to check with your boss if they allow their employees to engage in outside activities while working at the office. Some companies prohibit their employees from working outside while they're under contract because they want them focused on their work during business hours and don't want anything distracting them from their tasks. 

However, some firms are flexible about their policies and permit moonlighting depending on the type of activity, how much involvement it takes, how often it occurs, etc. It's a good idea to first talk to your manager about this to get approval before proceeding any further.

After considering these three points, one must decide if they would like to go ahead with moonlighting or should stick to their regular full-time job only.

Is moonlighting legal?

Moonlighting is legal but varies from company to company and how they see their employees getting engaged with moonlighting. That's why it is important for you to check with your employer about their policy. Generally, moonlighting leads to some serious consequences if the side work interferes with the original job duties.  

Also, some professions are prohibited from working more than a certain number of hours per week, while others may not be allowed to work in the same type of business as their current employer. For example, an engineer at TCS cannot work as an engineer with its competitor company. Employers also have the right to refuse permission for moonlighting if it interferes with their business operations or will cause other employees hardship.  

Some organizations will prohibit employee moonlighting outright and mandate that they be informed before an employee accepts any outside employment offers. 

So to stay safe, it is advised that you talk with your boss about what he/she allows before accepting a moonlighting offer. If you want to participate in moonlighting, then make sure you don't abuse the privilege and set up boundaries of your current full-time job so that your new job does not interfere with your main one.

What are some benefits of Moonlighting?

An individual from any profession can benefit from moonlighting or working a second job. Moonlighting can help you enhance your existing skills and gain additional ones by engaging in work different from what you do for your primary job.  

Here are the three main benefits that you will experience while moonlighting:  

1) You will have an additional source of income- Becoming a moonlighter can be great if you're trying to build up some savings or if you need some additional source of earning, as moonlighting allow you to use the skill set of your full-time position on a secondary job through which you can boost your earning and save the higher amount of money.  

2) You will have higher flexibility- Moonlighting provides many options, like having the opportunity to work during hours that fit with your life, making room for family, taking care of your responsibilities, etc., allowing you to manage everything with complete ease. You don't have to stick to fixed hours of work. You can simply choose the most suitable time of work to suit your lifestyle. 

3) You will be able to explore other fields- Moonlighting provides financial benefits and lets you explore new opportunities that may not exist in your primary career. Working on the side of your field, you can develop new skill sets which could prove beneficial in your day-to-day work and lead to new opportunities down the line which will help you to excel in your career.

What are major risks involved in Moonlighting?

Working a second job can be a great way to supplement your income, but it comes with many serious risks. The three top risks involved in moonlighting are;- 

1) The risk of being too exhausted or tired by work- If you are engaged in moonlighting, it can be really difficult for you to stay alert and focused on your primary job due to fatigue from the additional workload, which will lead to exhaustion and make the person less productive and highly tired that will affect the quality of their performance.  

2)The risk of violating company policy- Some companies prohibit employee from taking up any other employment during their employment. Some employers may be concerned about employees passing confidential information from one employer to another, or using corporate resources such as office equipment and supplies for personal reasons, etc. Violating these policies may lead to disciplinary action, termination of employment, and legal charges in some cases.  

3)The risk of getting burnt out- Moonlighting takes up valuable time during a person's 24 hrs, which may cause them to get burnt out due to low energy levels. Exhaustion can also affect health, especially mental health, as it will lead to anxiety, depression, and even substance abuse which might make them spend more on their recovery than what they had earned from moonlighting. 

4) The risk of getting fired from one of your jobs- Moonlighting is risky because there is always the possibility that your main employer might find out and terminate you. This is becoming very common as employers are now more suspicious as this topic is trending leading to people getting fired which would then lead to financial instability and put them at a greater risk of survival. 

5) The risk of performing with lower efficiency and quality - when employees are too tired and fatigued from working overtime, the services provided by those employees to their full-time jobs become slower and poorer in quality, leading to lower performance and poor results. Most probabily that leads to poor performance at second job also, which could lead you getting fired from both the jobs. 

What are the views of companies and employers on Moonlighting?

Employers and companies have different views regarding moonlighting. While some regard it as a necessary evil, others believe that moonlighting employees are easier targets for theft of intellectual property or losing confidential data, which can risk the company's reputation and credibility in the long run.  

Others worry about its effects on the employee's performance as moonlighting can lead to high levels of stress and anxiety due to juggling two jobs at once, which can lower the efficiency and productivity of their full-time job.  

There are even those who refuse to hire an applicant if he or she has been involved with any form of moonlighting during employment search because employers may see it as a lack of loyalty or commitment to the organization due to which they could not give 100% of there efforts to the company.

Here are a few highly reputed companies that are in the news due to their comments and how they feel about their employees moonlighting.

Story 1 

Rishad Premji, Wipro's chairman, has fired 300 employees for moonlighting. As per his comment, he believes employees who moonlight for a competitor cannot work for Wipro.  

Story 2 

Technology giant IBM has stated that moonlighting is completely unethical, and the company will not support or condone it for any of its employees. 

Story 3

Recently TCS, the organization said moonlighting is against their ethics and  company's core values. Those that choose to go against company standards will have to face disciplinary actions.  

With such conflicting views about moonlighting among organizations, it is clear that opting for the additional job full-time can be highly risky for employees as it involves big risks like losing the primary job and having fewer chances of getting a promotion. Hence, an individual should be careful before choosing to go for it.

Key steps you can take as an employer to deal with moonlighters

As an employer, if your employees moonlight, you can take several steps to manage the situation. A Few of them are mentioned below.  

1)Figure out which laws apply in your area by consulting with a local employment law attorney. 

2) Have an open dialogue with the employee about their goals and what they want to accomplish through working both jobs and possible impacts on their work-life balance. 

3) Provide guidance and mentoring on moonlighting employment law so employees can make decisions that align with company needs. 

4) Create guidelines on moonlighting for employees with clear consequences and disciplinary action that can be taken.

5) Have a written policy for moonlighting that states specifically what the company does and does not allow and share it with employees. 

 6) Use employee activity tracking software to monitor employees' internet usage and suspicious activities on the system. 

By taking the above steps, employees can ensure, to some extent, their employees are not distracted from their primary work and will have higher supervision over the responsibilities assigned to them.

Final Thoughts

Working a second job can be a great way to make extra money, have some variety in your work days, and enjoy a little more freedom. However, it's always important to consider your other commitments before you start moonlighting policy, such as your commitments with your first employer, the time involved in working two jobs, the impact on your health, and other major concerns.