If you terminate an employee who may have been moonlighting or running a side hustle, she may not be eligible for unemployment benefits. You may be able to oppose benefits because she has another source of income.
Recent case: After Karrie lost her job, she applied for unemployment benefits. She also applied for an employer identification number from the IRS because she planned to organize a local bridal show. She was denied benefits because of self-employment, which typically bars benefits.
She appealed after cancelling her plans for the show. Commonwealth Court then said she was eligible because she hadn’t acted to become self-employed on a sustained basis. (Cristea v. UCBR, Commonwealth Court, 2017)
Final note: Even side businesses such as selling cosmetics at home parties or regularly selling at flea markets may bar unemployment benefits.