I find that a “no compete” clause in my contract usually stops home owners from asking my workers to do side work or small tasks on the side or on the weekends that aren’t part of my contract. I don’t mind if my guys do side jobs (that they find on their own, not by my network), as long as they are not using company vehicles, wearing company logos or using company accounts or resources. I encourage my workers to relax and enjoy their weekends and rest, but often they have little odd jobs to do for family and friends. It doesn’t bother me and I’ve never had a problem with it due to being up front with them about crossing company lines.
For me the key is letting them know what is ok and what is crossing the lines.
Owens said it perfectly. Guys do side jobs and the good ones start companies. If it looks like he is going that route and you want to keep him. Sit down with him ask him what’s what make an offer and yes include no compete clause. Maybe no jobs for over 2500 to allow him to feed his family. No jobs other then family. Tons of options. In short think about it and talk to him. IMO nicely
Just ask him to be honest with you about it. As long as his side jobs don’t interfere with the work he is performing for you and he is not stealing clients, I don’t have a problem with it within my company as long as they establish with their customer that they are working as an individual and not through my business. If you already have a non compete disclosure in your contract that he already signed then you are legally covered if you find he is breaching that. Even if he does side jobs, he is still your employee and his conduct off company time will probably reflect on your reputation so I would monitor that. If you don’t have a non compete contract ask if he would be willing to sign one. If he would not be willing then that is probably the best indication that the situation is probably not going to end well when/if you part ways as employer/employee or as friends. At that point I would start thinking of how to terminate him or have him resign legally and on the best terms possible so things can remain amicable. I’d definitely also document the conversations about this situation which is why I try to do everything by email so you don’t have a he said/she said type situation later if things get ugly.