In an effort to maintain productivity and loyalty, many employers discourage employees from engaging in outside work, including launching side businesses or taking on second jobs. Some go further, implementing workplace policies that explicitly ban moonlighting—even when the second job poses no interference with an employee’s primary responsibilities. However, such blanket restrictions are not legally permissible in the District of Columbia.
In a significant departure from the norms in most jurisdictions, D.C.’s limitations on non-compete provisions extend beyond post-employment scenarios. They also restrict what employers can prohibit during an individual’s tenure. Under D.C. law, a “non-compete provision” includes any agreement or policy that prevents an employee “from performing work for another for pay or from operating the employee’s own business.” This broad definition means that employers generally cannot prevent employees from moonlighting while employed.
That said, the law does allow for limited exceptions. Employers in D.C. may restrict outside employment where it would:
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Lead to the employee’s disclosure or use of confidential or proprietary information;
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Violate industry-specific or professional rules concerning conflicts of interest;
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Create a “conflict of commitment” for employees working at higher education institutions; or
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Undermine the employer’s compliance with local or federal laws, contractual obligations, or grant terms.
Importantly, even when one of these exceptions applies, an employer cannot enforce a ban on moonlighting unless there is a clearly articulated, written policy. As the law mandates, such policies must explicitly state that moonlighting is only prohibited in circumstances where it “creates a conflict of interest or would result in the use or disclosure of confidential employer information.”
This nuanced approach reflects D.C.’s broader pro-employee stance on restrictive covenants and underscores the importance of carefully tailored employment policies. Employers should review their handbooks and agreements to ensure compliance, while employees working in the District should be aware of their rights to pursue additional work opportunities—provided those activities do not run afoul of the outlined exceptions. Our DC Employment lawyers are always here to assist.