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Outside Employment Agreement for the United States

Outside Employment Agreement Template for United States

A legal agreement governed by U.S. law that establishes the terms and conditions under which an employee may engage in additional employment or business activities outside their primary job. The document outlines permissions, restrictions, and obligations related to outside work while maintaining primary employment duties, including provisions for protecting confidential information, managing conflicts of interest, and ensuring compliance with both federal and state employment laws.

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What is a Outside Employment Agreement?

The Outside Employment Agreement is essential in today's dynamic work environment where employees increasingly seek multiple income streams or professional development opportunities. This document, compliant with U.S. federal and state employment laws, provides a framework for managing secondary employment relationships while protecting the primary employer's interests. It typically includes detailed provisions about work hours, conflict management, confidentiality, and intellectual property rights. The agreement is particularly relevant in situations where employees wish to pursue consulting, freelancing, or part-time opportunities while maintaining their primary employment.

What sections should be included in a Outside Employment Agreement?

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Scope of Outside Employment: Details of permitted outside work activities and limitations

5. Primary Employment Obligations: Confirmation of primary employer's rights and employee's duties

6. Time Commitment: Permitted hours for outside employment

7. Conflicts of Interest: Provisions regarding avoiding conflicts between employments

8. Confidentiality: Protection of confidential information from both employers

9. Term and Termination: Duration of agreement and termination provisions

What sections are optional to include in a Outside Employment Agreement?

1. Non-Compete Provisions: Restrictions on competitive activities - use when protecting business interests from competition is crucial

2. Intellectual Property Rights: Ownership of IP created during outside employment - use when outside work may involve creation of IP

3. Performance Standards: Specific performance requirements for primary employment - use when maintaining specific performance levels is crucial

4. Insurance Requirements: Additional insurance needs for outside work - use when outside work involves specific risks or liabilities

What schedules should be included in a Outside Employment Agreement?

1. Schedule A - Approved Outside Activities: Detailed list of specifically approved outside employment activities

2. Schedule B - Time Allocation: Specific breakdown of permitted hours and scheduling

3. Schedule C - Conflict Disclosure Form: Template for declaring potential conflicts of interest

4. Schedule D - Primary Employer Policies: Reference to relevant employer policies affecting outside work

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use

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