How to Find Out If an Employee Is Moonlighting

As the gig economy continues to grow and living costs soar, more employees are picking up side jobs — a trend that’s fast becoming a norm rather than an exception. According to recent data, the proportion of U.S. workers holding multiple jobs rose from 6.8% in 1996 to 7.8% in 2018, and nearly half of employees globally report having a “side hustle.” By 2024, the global side-hustle economy was estimated at around US$556.7 billion.

For managers and business leaders, this shift raises real questions: Are some of your employees quietly working elsewhere? And if they are, could that side gig be hurting productivity, data safety, or company loyalty? This article walks you through what moonlighting looks like, the risks it brings — and practical steps to detect and manage it responsibly.

What Is Employee Moonlighting?

“Moonlighting” refers to the practice of holding a secondary job (or multiple jobs) alongside one’s primary full-time employment. The name evokes the image of working under the moonlight — after the regular workday ends.

What Moonlighting Looks Like

Moonlighting isn’t uniform. Here are common forms it can take:

Blue moonlighting: Occasional side gigs. The extra work is sporadic — but even occasional moonlighting can lead to burnout or declining performance if not managed carefully.

Part-time / gig-based moonlighting: Regular hours outside the main job — e.g. freelance work, gig-economy tasks, part-time roles. Might be manageable if side work is modest, but risks grow if hours escalate.

Competitive moonlighting: Side jobs that directly compete with the primary employer’s business — highest risk, often involving potential conflicts of interest, data leaks, or misuse of company resources.

Full-scale moonlighting: A serious second job alongside the main one. Even if performance seems stable initially, long-term commitment, loyalty, and confidentiality may erode.

How Moonlighting Can Affect Your Organization

Moonlighting isn’t always bad — side gigs can help employees grow, earn more, or explore new paths. But when unmanaged, the downsides for organizations can be serious. Common risks include:

RiskWhat It Means for the CompanyReduced productivityFatigue, burnout, missed deadlines, mistakes — side work can drain energy and focus away from primary duties.Conflicts of interestIf side work is in the same industry or uses overlapping clients, it may violate loyalty, confidentiality, or non-compete clauses. Data and security risksEmployees might handle sensitive data improperly when juggling multiple jobs, potentially using unauthorized apps or devices.Lower commitment & higher turnoverIf a side gig becomes more attractive, employees may view their main job as temporary — which can undermine long-term team stability.

In short: moonlighting isn’t a trivial HR quirk — if left unchecked, it can become a serious operational and compliance risk.

How to Detect Moonlighting — Without Crossing Ethical Lines

Spotting moonlighting isn’t about “spying” on employees — it’s about paying attention to workplace patterns and evaluating performance, while respecting privacy and local laws. Here’s a practical checklist:

Review employment contracts and HR policies — start by checking if there are clauses about non-competition, confidentiality, exclusivity, or disclosure of outside work. If no clear policy exists, it becomes harder (and riskier) to take action.

Monitor performance and behavior at work — consistent signs like fatigue, lateness, frequent mistakes, missed deadlines, or excessive personal calls/devices usage can point to overwork. Use this data as evidence before proceeding.

Check use of company resources — with transparent, policy-compliant tools, review whether company devices, email, or data are being used for side business (e.g. client outreach, freelance platforms, external transfers).

Have open discussions — if performance drops or resource misuse is suspected, talk with the employee first. Ask if personal commitments (like a side job) are affecting work. Don’t accuse — listen and give them a chance to explain.

Note: In many places (including jurisdictions like Singapore), moonlighting is not strictly illegal — but it may be restricted depending on the nature of the job, employment contract, or immigration/permit status.

How Employers Can Manage — And Pre-empt — Moonlighting

Rather than treating moonlighting solely as a problem, many organizations find it more constructive to manage it proactively. Here’s how: AnySecura

Establish clear, fair policies — draft moonlighting / secondary-employment policies covering what’s allowed, what requires disclosure, and under what conditions a second job is prohibited (especially for competitors).

Ensure fair compensation and growth opportunities internally — sometimes employees moonlight simply because they need extra income or feel unfulfilled. Competitive pay, clear career paths, and skill-development opportunities can reduce motivation for secret side-gigs.

Foster open communication and trust culture — encourage employees to bring up financial or personal pressures. Genuine dialogue reduces secrecy and allows for negotiated compromises (e.g. part-time arrangements, flexible hours).

Use ethical monitoring and oversight (when appropriate) — if your company handles sensitive data, consider privacy-conscious monitoring solutions (with full transparency and consent) to prevent resource misuse, data leaks, or conflict of interest.

Final Thoughts

Moonlighting is hardly a rare occurrence anymore — it reflects broader shifts in the labour market, cost of living, and personal aspirations. For companies, the goal shouldn’t necessarily be to eliminate side gigs altogether — but to manage them with clarity, fairness, and integrity.

By combining transparent policy, open communication, fair incentives, and responsible oversight, organizations can safeguard productivity, loyalty, and data security — without policing employees’ outside lives.

In doing so, businesses acknowledge a modern workforce reality: many people want — and sometimes need — multiple income streams. The challenge lies in balancing that desire with company interests in a way that respects both.