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Can we limit employee freelancing?

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in Employment Law,Human Resources

Q. I recently found out that one of our designers has been freelancing on the side. It doesn’t seem to be interfering with her work, but is there anything we can do legally to protect the interest of the company?

A. You can ask her to sign a confidentiality agreement providing that she will not use or disclose any of your company’s proprietary or trade secret information.

You can also ask her to sign a restrictive covenant agreement providing that she cannot solicit business from your customers or compete with your business. However, in Pennsylvania, you would have to give her something in exchange for that agreement (such as a cash payment).

You can also include a provision in your employee handbook and in any offer letters or employment agreements that states that any outside employment may not interfere with an employee’s performance of his or her job for your company.

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