Can You Be Fired for Having a Side Hustle? Employee Rights in California
In the age of gig work and creative entrepreneurship, many employees in California juggle a side hustle alongside their main job. Whether it’s freelancing, rideshare driving, or running a small business, side gigs are more common than ever. But can your employer fire you for having one?
Let’s break it down.
California Is an At-Will Employment State—But With Limits
Technically, employers in California can terminate employees at any time, for any reason—or no reason—unless it’s illegal or retaliatory. But that doesn’t mean they can fire you simply for pursuing outside work.
When a Side Hustle Can Get You in Trouble
You’re generally safe unless your side hustle:
- Directly competes with your employer
- Uses company time or resources
- Involves confidential or proprietary information
- Violates a non-compete or conflict of interest agreement
Even though non-compete clauses are largely unenforceable in California, conflict of interest and confidentiality violations can still be legitimate grounds for termination.
Know What You Signed
Many employment contracts include policies around outside work. It’s important to:
- Review your offer letter or employment agreement
- Understand any moonlighting policies
- Avoid using work equipment or time for your side hustle
Protected Rights and Retaliation
You can’t be fired for:
- Having a lawful business outside of work
- Reporting wage theft, discrimination, or labor violations—even if you’re also a side hustler
- Asking questions about your rights (retaliation is illegal!)
What to Do If You’re Fired Unfairly
If you believe you were terminated for a reason that violates your rights or workplace protections:
- Document all communications and policies.
- File a retaliation or wrongful termination complaint with the California Labor Commissioner.
- Speak with a labor attorney about your options.
