Conflicts of Interest & Outside Work

This is an optional policy your organization may want to consider if you are concerned about after-hours work that may:

• Affect an employee’s ability to perform his or her assigned duties.
• Conflict with your organization’s business interests.

If your organization has reasonable business concerns, a policy like this could be beneficial. However, it’s important to note that some employees may need to hold additional jobs or wish to pursue opportunities outside of their work with your organization. 

Rather than banning outside work, it could be helpful to set performance expectations. For instance, you might:

• Require that outside employment not impair an employee’s job performance.
• Address how conflicts of interest will be handled.
• Make it clear that an employee may be subject to disciplinary action if this policy is violated.

Ultimately, you’re encouraged to consult with a local attorney to ensure that the policy you develop protects your organization’s interests.

SAMPLE POLICY:
CONFLICTS OF INTEREST & OUTSIDE WORK

When you accept employment with [name of organization], your first responsibility is to this organization. Efficiently performing your assigned duties is one part of this obligation. [Name of organization] recognizes that you may desire or need to accept casual, outside employment under certain circumstances. Naturally, any work of this kind would be done outside of your normal working hours. [Name of organization] does not object to you accepting outside employment, as long as it does not:

• Generally interfere with your regular work hours with [name of organization],
• Affect the efficient performance of your regular duties, or
• Conflict with [name of organization’s] interests or diminish your ability to render your full, loyal, and undivided service to our organization.

Each employee of [name of organization] also has a fiduciary relationship with the organization that is based on loyalty, trust, good faith, and candor in the performance of assigned duties. Each employee should exercise good judgment, high ethical standards, and honesty in all dealings with our organization, in order to avoid any actual or perceived conflicts of interest.  

Guidelines

1. Talk to your supervisor before pursuing outside employment. All employees are expected to obtain their supervisor’s consent before accepting another job.
    
2. You should be aware that work assignments and schedules generally will not be changed to let you to perform duties for an outside employer. Further, the organization will not consider outside business activities an excuse for not reporting to work or staying for overtime work.
    
3. Consult with your supervisor if you have a concern about a potential conflict of interest or if an outside employment opportunity uses the same job skills as your current position. The supervisor will determine if a conflict of interest exists.
    
4. Violating this policy may subject you to disciplinary action, up to and including termination of employment.

This is a sample handbook policy only. Your organization is responsible for compliance with all applicable laws. Accordingly, this document should not be used or adopted by your organization without first being reviewed and approved by a licensed attorney in your area. Brotherhood Mutual assumes no liability in preparation and distribution of this sample document.

Working Together © 2022 Brotherhood Mutual Insurance Company. All rights reserved. www.brotherhoodmutual.com/working-together. Updated 9/2021.