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re: Is it legal to have a full time job and a consulting company at the same time?

Posted on 10/9/23 at 7:40 am to
Posted by tketaco
Sunnyside, Houston
Member since Jan 2010
19546 posts
Posted on 10/9/23 at 7:40 am to
Only if you signed a Non Compete does it tricky but just dont frick with their clients and you're good.
Posted by c0rndogs
Member since Nov 2019
70 posts
Posted on 10/9/23 at 7:41 am to
I run a team of consultants and I don't care if they do side gigs. Several of them have asked me and been transparent about it. The main rules are just don't compete for the same clients, don't use company assets to do your side hustle, and don't let it affect your actual work. Aside from that, no one is going to care.
This post was edited on 10/9/23 at 7:43 am
Posted by Boondock Saint
The Boondocks
Member since Oct 2005
4537 posts
Posted on 10/9/23 at 8:57 am to
I am a business management consultant for a firm based out of Chicago. I do have an employment contract with them that specifically forbids me to do any type of consulting on the side.

It's not a law though. Worse case scenario I get sued....

I copy and pasted it directly from my contract here:



IV. OTHER EMPLOYMENT
A. Employee agrees that throughout the duration of the Agreement, he/she will not, absent prior
written consent from the Company, directly or indirectly engage in any employment, consulting,
or any other activity other than for the Company relating to any business in which the Company
is now or at such time is engaged, or which would otherwise conflict with his/her employment
obligations to the Company.
Posted by Mo Jeaux
Member since Aug 2008
58892 posts
Posted on 10/9/23 at 8:59 am to
quote:

It's not a law though. Worse case scenario I get sued....



Right. It’s not illegal, but OP May have a contractual obligation that would expose him to liability if he did so.
Posted by Boondock Saint
The Boondocks
Member since Oct 2005
4537 posts
Posted on 10/9/23 at 9:03 am to
quote:

Only if you signed a Non Compete does it tricky but just dont frick with their clients and you're good.




I also have a non compete in my contract. I copied and pasted it here:

VI. COVENANTS OF EMPLOYEE AND NON-COMPETITION AGREEMENT
A. At no time during their employment, and for twelve (12) months after the termination of the
Agreement, shall the Employee, either individually or in conjunction with any other person and/or
entity, directly or indirectly;
1. Solicit or attempt to solicit, directly or indirectly, any Protected Parties to which Employee
has been assigned or has knowledge, with whom the Company has initiated contact,
and is performing such acts designed to lead to the development of a business
relationship; or
2. Solicit or attempt to solicit, directly or indirectly, any employee, agent, or contractor of
Protected Parties to leave the employment of, or terminate the contractual relationship
with, Protected Parties.
B. Upon termination of employment, Employee shall:
1. Promptly return all Confidential Information and Intellectual Property, including all
copies of documents, notes, or materials made by Employee or at the Company's
direction to the respective Protected Party; and
2. Certify in writing to the Company that Employee has so complied.
Posted by AwgustaDawg
CSRA
Member since Jan 2023
7169 posts
Posted on 10/9/23 at 9:05 am to
quote:

Don’t normal employee contracts prohibit such actions?



If you ain't aware of what is in a contract you have signed you probably ain't gonna find much work as a consultant unless your plans are to consult people on what not to do in business.


Posted by Palomitz
Miami
Member since Oct 2009
2217 posts
Posted on 10/9/23 at 9:15 am to
It is not illegal, unless you have a direct contract with your employer stating so.

Been doing this for years. I work my 40 hours a week and do side work some nights or weekends. Cost of living has become so high that I have no option.

Posted by Mo Jeaux
Member since Aug 2008
58892 posts
Posted on 10/9/23 at 9:16 am to
quote:

It is not illegal, unless you have a direct contract with your employer stating so.


Even then it's not illegal.
Posted by Mo Jeaux
Member since Aug 2008
58892 posts
Posted on 10/9/23 at 9:19 am to
quote:

I also have a non compete in my contract. I copied and pasted it here:



That's not a non-compete in VI.A. That's a non-solicit.
Posted by Boondock Saint
The Boondocks
Member since Oct 2005
4537 posts
Posted on 10/9/23 at 9:56 am to
quote:

That's not a non-compete in VI.A. That's a non-solicit.


Interesting. I'm assuming you're a lawyer. We have tons of lawyers working for my company though. Why do they call that section "Non-Competition"?

Also, what are the specific differences between non compete and non solicit?

I'm not going to do this job forever and will eventually leave and I'll probably start my own business.
Posted by Mo Jeaux
Member since Aug 2008
58892 posts
Posted on 10/9/23 at 10:05 am to
quote:

Interesting. I'm assuming you're a lawyer. We have tons of lawyers working for my company though. Why do they call that section "Non-Competition"?

Also, what are the specific differences between non compete and non solicit?

I'm not going to do this job forever and will eventually leave and I'll probably start my own business.


I am, but I'm not an employment lawyer and cannot provide legal advice, only my thoughts.

The reason why it's labeled that way is just sloppiness in my opinion.

There is some overlap, but a non-compete would be more like saying that you cannot engage in the same line of business with a competitor for a certain amount of time (sometimes limited to a geographical area). They tend to be drafted more broadly.

A non-solicit says just what you pasted. You cannot solicit any current customers, employees, etc., to leave your current employer and join you.

ETA: The non-solicits obviously are meant to make it difficult for you to compete, but technically, there is nothing in what you posted that would prohibit you from starting a competing business.
This post was edited on 10/9/23 at 10:09 am
Posted by Elblancodiablo
Member since Sep 2023
1829 posts
Posted on 10/9/23 at 10:09 am to
quote:

normal employee contracts

What dis is?
Posted by Trevaylin
south texas
Member since Feb 2019
5931 posts
Posted on 10/9/23 at 10:20 am to
About a month after I assumed control of an industrial site, I found two of the environmental long term engineers were running a very active environmental consulting business as a side hustle. Proper time accounting was not the problem. The third party lab work for their clients was billed to the industrial site.. and their clients. Hard time, and loss of retirement benefits ensued
Posted by AlumneyeJ93
Member since Apr 2022
641 posts
Posted on 10/9/23 at 11:10 am to
keep them separate and no side hustles on company time.

We had a lady who spent most of her day running her travel business out of her office instead of doing her actual job. It was no secret around the office.

I was indirectly dependent upon this lady for information to do my job and she was always holding me up. One of her travel travel clients accidently landed at my extension and I forwarded them on to the new VP of my group at the time. He was not amused and she was let go about a month later during a staff reduction.
Posted by WB Davis
Member since May 2018
2083 posts
Posted on 10/9/23 at 11:30 am to
quote:

keep them separate and no side hustles on company time

This.

And think through the repercussions when (not if) your boss and everyone else at the current job finds out.
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