What kind of activities are allowed if your job contract prohibits any other occupation or business? [closed]

The name of the pictureThe name of the pictureThe name of the pictureClash Royale CLAN TAG#URR8PPP





.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty margin-bottom:0;







up vote
1
down vote

favorite












My full-time job contract contains a clause that says my employment with the company is exclusive and I should have no other occupation or business outside of it.



I would like to know what exact kind of activities are allowed in this case.



I have a few examples which relate to my situation:
1. Can I sell my second-hand books or my own hobby-made craft and earn a little bit of cash in the process?
2. Can I make any earnings on investments, e.g. putting house/rooms on rent?
3. Can I take on a leadership role in a hobby club (e.g. a sports club, a volunteer group, etc.)?
4. Can I do any volunteering?



Some of these questions may sound obvious, especially because I know many people who volunteer or sell stuff on Amazon, who also have office jobs like me, but I want to be 100% sure.







share|improve this question












closed as off-topic by atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G. Oct 14 '13 at 11:23


This question appears to be off-topic. The users who voted to close gave this specific reason:


  • "Questions seeking legal advice are off-topic as they require answers by legal professionals. See: What is asking for legal advice?" – atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G.
If this question can be reworded to fit the rules in the help center, please edit the question.








  • 1




    It is not a prohibition on outside income it is a prohibition from moonlighting.For 3 and 4 I would make sure I got permission before I took them on, but that is generally not what your employer is trying to avoid. This question could probably be saved by changing it to ask what the basic intent of the clause is.
    – IDrinkandIKnowThings
    Oct 13 '13 at 16:40
















up vote
1
down vote

favorite












My full-time job contract contains a clause that says my employment with the company is exclusive and I should have no other occupation or business outside of it.



I would like to know what exact kind of activities are allowed in this case.



I have a few examples which relate to my situation:
1. Can I sell my second-hand books or my own hobby-made craft and earn a little bit of cash in the process?
2. Can I make any earnings on investments, e.g. putting house/rooms on rent?
3. Can I take on a leadership role in a hobby club (e.g. a sports club, a volunteer group, etc.)?
4. Can I do any volunteering?



Some of these questions may sound obvious, especially because I know many people who volunteer or sell stuff on Amazon, who also have office jobs like me, but I want to be 100% sure.







share|improve this question












closed as off-topic by atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G. Oct 14 '13 at 11:23


This question appears to be off-topic. The users who voted to close gave this specific reason:


  • "Questions seeking legal advice are off-topic as they require answers by legal professionals. See: What is asking for legal advice?" – atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G.
If this question can be reworded to fit the rules in the help center, please edit the question.








  • 1




    It is not a prohibition on outside income it is a prohibition from moonlighting.For 3 and 4 I would make sure I got permission before I took them on, but that is generally not what your employer is trying to avoid. This question could probably be saved by changing it to ask what the basic intent of the clause is.
    – IDrinkandIKnowThings
    Oct 13 '13 at 16:40












up vote
1
down vote

favorite









up vote
1
down vote

favorite











My full-time job contract contains a clause that says my employment with the company is exclusive and I should have no other occupation or business outside of it.



I would like to know what exact kind of activities are allowed in this case.



I have a few examples which relate to my situation:
1. Can I sell my second-hand books or my own hobby-made craft and earn a little bit of cash in the process?
2. Can I make any earnings on investments, e.g. putting house/rooms on rent?
3. Can I take on a leadership role in a hobby club (e.g. a sports club, a volunteer group, etc.)?
4. Can I do any volunteering?



Some of these questions may sound obvious, especially because I know many people who volunteer or sell stuff on Amazon, who also have office jobs like me, but I want to be 100% sure.







share|improve this question












My full-time job contract contains a clause that says my employment with the company is exclusive and I should have no other occupation or business outside of it.



I would like to know what exact kind of activities are allowed in this case.



I have a few examples which relate to my situation:
1. Can I sell my second-hand books or my own hobby-made craft and earn a little bit of cash in the process?
2. Can I make any earnings on investments, e.g. putting house/rooms on rent?
3. Can I take on a leadership role in a hobby club (e.g. a sports club, a volunteer group, etc.)?
4. Can I do any volunteering?



Some of these questions may sound obvious, especially because I know many people who volunteer or sell stuff on Amazon, who also have office jobs like me, but I want to be 100% sure.









share|improve this question











share|improve this question




share|improve this question










asked Oct 13 '13 at 15:21









TomatoGirl

92




92




closed as off-topic by atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G. Oct 14 '13 at 11:23


This question appears to be off-topic. The users who voted to close gave this specific reason:


  • "Questions seeking legal advice are off-topic as they require answers by legal professionals. See: What is asking for legal advice?" – atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G.
If this question can be reworded to fit the rules in the help center, please edit the question.




closed as off-topic by atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G. Oct 14 '13 at 11:23


This question appears to be off-topic. The users who voted to close gave this specific reason:


  • "Questions seeking legal advice are off-topic as they require answers by legal professionals. See: What is asking for legal advice?" – atk, jcmeloni, IDrinkandIKnowThings, CincinnatiProgrammer, Jim G.
If this question can be reworded to fit the rules in the help center, please edit the question.







  • 1




    It is not a prohibition on outside income it is a prohibition from moonlighting.For 3 and 4 I would make sure I got permission before I took them on, but that is generally not what your employer is trying to avoid. This question could probably be saved by changing it to ask what the basic intent of the clause is.
    – IDrinkandIKnowThings
    Oct 13 '13 at 16:40












  • 1




    It is not a prohibition on outside income it is a prohibition from moonlighting.For 3 and 4 I would make sure I got permission before I took them on, but that is generally not what your employer is trying to avoid. This question could probably be saved by changing it to ask what the basic intent of the clause is.
    – IDrinkandIKnowThings
    Oct 13 '13 at 16:40







1




1




It is not a prohibition on outside income it is a prohibition from moonlighting.For 3 and 4 I would make sure I got permission before I took them on, but that is generally not what your employer is trying to avoid. This question could probably be saved by changing it to ask what the basic intent of the clause is.
– IDrinkandIKnowThings
Oct 13 '13 at 16:40




It is not a prohibition on outside income it is a prohibition from moonlighting.For 3 and 4 I would make sure I got permission before I took them on, but that is generally not what your employer is trying to avoid. This question could probably be saved by changing it to ask what the basic intent of the clause is.
– IDrinkandIKnowThings
Oct 13 '13 at 16:40










2 Answers
2






active

oldest

votes

















up vote
3
down vote













Your contract makes it clear: no other "occupation or business". Having a garage sale is not a business; even the IRS says so. Selling regularly on Amazon is likely to be a business; selling one used item is not.



The IRS says, at http://www.irs.gov/Charities-&-Non-Profits/Trade-or-Business--Defined




"Trade or Business" Defined



The term trade or business generally includes any activity carried on
for the production of income from selling goods or performing
services. It is not limited to integrated aggregates of assets,
activities, and goodwill that comprise businesses for purposes of
certain other provisions of the Internal Revenue Code. Activities of
producing or distributing goods or performing services from which
gross income is derived do not lose their identity as trades or
businesses merely because they are carried on within a larger
framework of other activities that may, or may not, be related to the
organization's exempt purposes.




The intent of your contract is to keep your work efforts solely focused on your job, even if it's off-hours. That way, there is no question that anything you develop, during that period of employment, no matter what day or time it may have been done, belongs to the company.



You can volunteer, part-time, elsewhere, as long as you aren't given a regular job role. You can play sports and even be captain of the team, as long as you're not paid for it and you don't hold a business-related position in the organization.



It's not all that fuzzy. If you want to sell your hobbycrafts on the side, you're breaking your contract as that is a side business. It's not about how -small- the business is, it's that you've agreed that you will have only one job, one occupation, and work for only one business. Period. And even if others get away with breaking their contract, you still would be risking your job if you do the same, and violating the terms to which you agreed.



Here is an example from some slightly clearer language in a standard contract; it allows one area of exception that your contract may not spell out:



http://thompsonhall.com/sample-employment-agreement-template-for-minnesota-businesses/




The EMPLOYEE shall devote EMPLOYEE’s full business time and best
efforts and abilities to the COMPANY in the performance of EMPLOYEE’s
duties and responsibilities determined and assigned by the COMPANY’s
_______ and shall engage in no other business, either directly or
indirectly, in EMPLOYEE’s own behalf, or as an employee or
independent contractor of another employer.



Notwithstanding the above, the EMPLOYEE shall be permitted, to the
extent such activities do not interfere with the performance of
her/his duties and responsibilities to (i) manage her/his personal,
financial and legal affairs, (ii) serve on civic or charitable boards
or committees, (iii) serve on boards of other companies of
organization that do not compete with COMPANY or any related entity in
any shape or form, and the EMPLOYEE shall be entitled to receive and
retain all remuneration received by her/him from the items listed in
clauses (i) through (iii) of this paragraph.




Another way to look at it is to consider whether that activity might be something you'd want treated as a business if it's profitable. You can't deduct your hobbycrafts costs if it's just a hobby, despite being required to report the income; if you want to deduct the costs from the income, then you have to define it as a business. The same applies for those selling on Amazon: to deduct the costs of doing business from the income produced, you must file the very form that acknowledges it's a business. When working for others (such as a non-profit) as a volunteer, it becomes an "occupation" if you have identified responsibilities, a consistent role, or any of many other aspects that show that you function as regular employee (even if unpaid and part-time.)



But when in doubt: Ask the other party. They might even give you permission to do something outside of the contract terms.






share|improve this answer






















  • Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
    – Debra
    Oct 13 '13 at 17:07











  • This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
    – IDrinkandIKnowThings
    Oct 13 '13 at 17:15











  • Thanks. I apologize for not including some cites.
    – Debra
    Oct 13 '13 at 17:27










  • FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
    – Amy Blankenship
    Oct 13 '13 at 23:35










  • Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
    – Debra
    Oct 14 '13 at 0:30


















up vote
0
down vote













Ask HR.
If they care about it they will let you know. If it is a borderline case they will have a form. Sometimes the key is just declaring the activity.



Sometimes the size of enterprise or frequency of the event is what makes a difference. Becoming the treasurer of the little league baseball team while you are an accountant might not be considered an issue, because the team was never going to hire a professional accountant. Running the fall yard sale for the community is a once a year event, so they know it will be limited to only part of the year.



They get concerned when the outside activities encroach into the workday or the work place. So don't use the work equipment to keep the books for the team, and don't use the copier to print flyers. Take related phone calls on your cell.






share|improve this answer



























    2 Answers
    2






    active

    oldest

    votes








    2 Answers
    2






    active

    oldest

    votes









    active

    oldest

    votes






    active

    oldest

    votes








    up vote
    3
    down vote













    Your contract makes it clear: no other "occupation or business". Having a garage sale is not a business; even the IRS says so. Selling regularly on Amazon is likely to be a business; selling one used item is not.



    The IRS says, at http://www.irs.gov/Charities-&-Non-Profits/Trade-or-Business--Defined




    "Trade or Business" Defined



    The term trade or business generally includes any activity carried on
    for the production of income from selling goods or performing
    services. It is not limited to integrated aggregates of assets,
    activities, and goodwill that comprise businesses for purposes of
    certain other provisions of the Internal Revenue Code. Activities of
    producing or distributing goods or performing services from which
    gross income is derived do not lose their identity as trades or
    businesses merely because they are carried on within a larger
    framework of other activities that may, or may not, be related to the
    organization's exempt purposes.




    The intent of your contract is to keep your work efforts solely focused on your job, even if it's off-hours. That way, there is no question that anything you develop, during that period of employment, no matter what day or time it may have been done, belongs to the company.



    You can volunteer, part-time, elsewhere, as long as you aren't given a regular job role. You can play sports and even be captain of the team, as long as you're not paid for it and you don't hold a business-related position in the organization.



    It's not all that fuzzy. If you want to sell your hobbycrafts on the side, you're breaking your contract as that is a side business. It's not about how -small- the business is, it's that you've agreed that you will have only one job, one occupation, and work for only one business. Period. And even if others get away with breaking their contract, you still would be risking your job if you do the same, and violating the terms to which you agreed.



    Here is an example from some slightly clearer language in a standard contract; it allows one area of exception that your contract may not spell out:



    http://thompsonhall.com/sample-employment-agreement-template-for-minnesota-businesses/




    The EMPLOYEE shall devote EMPLOYEE’s full business time and best
    efforts and abilities to the COMPANY in the performance of EMPLOYEE’s
    duties and responsibilities determined and assigned by the COMPANY’s
    _______ and shall engage in no other business, either directly or
    indirectly, in EMPLOYEE’s own behalf, or as an employee or
    independent contractor of another employer.



    Notwithstanding the above, the EMPLOYEE shall be permitted, to the
    extent such activities do not interfere with the performance of
    her/his duties and responsibilities to (i) manage her/his personal,
    financial and legal affairs, (ii) serve on civic or charitable boards
    or committees, (iii) serve on boards of other companies of
    organization that do not compete with COMPANY or any related entity in
    any shape or form, and the EMPLOYEE shall be entitled to receive and
    retain all remuneration received by her/him from the items listed in
    clauses (i) through (iii) of this paragraph.




    Another way to look at it is to consider whether that activity might be something you'd want treated as a business if it's profitable. You can't deduct your hobbycrafts costs if it's just a hobby, despite being required to report the income; if you want to deduct the costs from the income, then you have to define it as a business. The same applies for those selling on Amazon: to deduct the costs of doing business from the income produced, you must file the very form that acknowledges it's a business. When working for others (such as a non-profit) as a volunteer, it becomes an "occupation" if you have identified responsibilities, a consistent role, or any of many other aspects that show that you function as regular employee (even if unpaid and part-time.)



    But when in doubt: Ask the other party. They might even give you permission to do something outside of the contract terms.






    share|improve this answer






















    • Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
      – Debra
      Oct 13 '13 at 17:07











    • This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
      – IDrinkandIKnowThings
      Oct 13 '13 at 17:15











    • Thanks. I apologize for not including some cites.
      – Debra
      Oct 13 '13 at 17:27










    • FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
      – Amy Blankenship
      Oct 13 '13 at 23:35










    • Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
      – Debra
      Oct 14 '13 at 0:30















    up vote
    3
    down vote













    Your contract makes it clear: no other "occupation or business". Having a garage sale is not a business; even the IRS says so. Selling regularly on Amazon is likely to be a business; selling one used item is not.



    The IRS says, at http://www.irs.gov/Charities-&-Non-Profits/Trade-or-Business--Defined




    "Trade or Business" Defined



    The term trade or business generally includes any activity carried on
    for the production of income from selling goods or performing
    services. It is not limited to integrated aggregates of assets,
    activities, and goodwill that comprise businesses for purposes of
    certain other provisions of the Internal Revenue Code. Activities of
    producing or distributing goods or performing services from which
    gross income is derived do not lose their identity as trades or
    businesses merely because they are carried on within a larger
    framework of other activities that may, or may not, be related to the
    organization's exempt purposes.




    The intent of your contract is to keep your work efforts solely focused on your job, even if it's off-hours. That way, there is no question that anything you develop, during that period of employment, no matter what day or time it may have been done, belongs to the company.



    You can volunteer, part-time, elsewhere, as long as you aren't given a regular job role. You can play sports and even be captain of the team, as long as you're not paid for it and you don't hold a business-related position in the organization.



    It's not all that fuzzy. If you want to sell your hobbycrafts on the side, you're breaking your contract as that is a side business. It's not about how -small- the business is, it's that you've agreed that you will have only one job, one occupation, and work for only one business. Period. And even if others get away with breaking their contract, you still would be risking your job if you do the same, and violating the terms to which you agreed.



    Here is an example from some slightly clearer language in a standard contract; it allows one area of exception that your contract may not spell out:



    http://thompsonhall.com/sample-employment-agreement-template-for-minnesota-businesses/




    The EMPLOYEE shall devote EMPLOYEE’s full business time and best
    efforts and abilities to the COMPANY in the performance of EMPLOYEE’s
    duties and responsibilities determined and assigned by the COMPANY’s
    _______ and shall engage in no other business, either directly or
    indirectly, in EMPLOYEE’s own behalf, or as an employee or
    independent contractor of another employer.



    Notwithstanding the above, the EMPLOYEE shall be permitted, to the
    extent such activities do not interfere with the performance of
    her/his duties and responsibilities to (i) manage her/his personal,
    financial and legal affairs, (ii) serve on civic or charitable boards
    or committees, (iii) serve on boards of other companies of
    organization that do not compete with COMPANY or any related entity in
    any shape or form, and the EMPLOYEE shall be entitled to receive and
    retain all remuneration received by her/him from the items listed in
    clauses (i) through (iii) of this paragraph.




    Another way to look at it is to consider whether that activity might be something you'd want treated as a business if it's profitable. You can't deduct your hobbycrafts costs if it's just a hobby, despite being required to report the income; if you want to deduct the costs from the income, then you have to define it as a business. The same applies for those selling on Amazon: to deduct the costs of doing business from the income produced, you must file the very form that acknowledges it's a business. When working for others (such as a non-profit) as a volunteer, it becomes an "occupation" if you have identified responsibilities, a consistent role, or any of many other aspects that show that you function as regular employee (even if unpaid and part-time.)



    But when in doubt: Ask the other party. They might even give you permission to do something outside of the contract terms.






    share|improve this answer






















    • Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
      – Debra
      Oct 13 '13 at 17:07











    • This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
      – IDrinkandIKnowThings
      Oct 13 '13 at 17:15











    • Thanks. I apologize for not including some cites.
      – Debra
      Oct 13 '13 at 17:27










    • FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
      – Amy Blankenship
      Oct 13 '13 at 23:35










    • Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
      – Debra
      Oct 14 '13 at 0:30













    up vote
    3
    down vote










    up vote
    3
    down vote









    Your contract makes it clear: no other "occupation or business". Having a garage sale is not a business; even the IRS says so. Selling regularly on Amazon is likely to be a business; selling one used item is not.



    The IRS says, at http://www.irs.gov/Charities-&-Non-Profits/Trade-or-Business--Defined




    "Trade or Business" Defined



    The term trade or business generally includes any activity carried on
    for the production of income from selling goods or performing
    services. It is not limited to integrated aggregates of assets,
    activities, and goodwill that comprise businesses for purposes of
    certain other provisions of the Internal Revenue Code. Activities of
    producing or distributing goods or performing services from which
    gross income is derived do not lose their identity as trades or
    businesses merely because they are carried on within a larger
    framework of other activities that may, or may not, be related to the
    organization's exempt purposes.




    The intent of your contract is to keep your work efforts solely focused on your job, even if it's off-hours. That way, there is no question that anything you develop, during that period of employment, no matter what day or time it may have been done, belongs to the company.



    You can volunteer, part-time, elsewhere, as long as you aren't given a regular job role. You can play sports and even be captain of the team, as long as you're not paid for it and you don't hold a business-related position in the organization.



    It's not all that fuzzy. If you want to sell your hobbycrafts on the side, you're breaking your contract as that is a side business. It's not about how -small- the business is, it's that you've agreed that you will have only one job, one occupation, and work for only one business. Period. And even if others get away with breaking their contract, you still would be risking your job if you do the same, and violating the terms to which you agreed.



    Here is an example from some slightly clearer language in a standard contract; it allows one area of exception that your contract may not spell out:



    http://thompsonhall.com/sample-employment-agreement-template-for-minnesota-businesses/




    The EMPLOYEE shall devote EMPLOYEE’s full business time and best
    efforts and abilities to the COMPANY in the performance of EMPLOYEE’s
    duties and responsibilities determined and assigned by the COMPANY’s
    _______ and shall engage in no other business, either directly or
    indirectly, in EMPLOYEE’s own behalf, or as an employee or
    independent contractor of another employer.



    Notwithstanding the above, the EMPLOYEE shall be permitted, to the
    extent such activities do not interfere with the performance of
    her/his duties and responsibilities to (i) manage her/his personal,
    financial and legal affairs, (ii) serve on civic or charitable boards
    or committees, (iii) serve on boards of other companies of
    organization that do not compete with COMPANY or any related entity in
    any shape or form, and the EMPLOYEE shall be entitled to receive and
    retain all remuneration received by her/him from the items listed in
    clauses (i) through (iii) of this paragraph.




    Another way to look at it is to consider whether that activity might be something you'd want treated as a business if it's profitable. You can't deduct your hobbycrafts costs if it's just a hobby, despite being required to report the income; if you want to deduct the costs from the income, then you have to define it as a business. The same applies for those selling on Amazon: to deduct the costs of doing business from the income produced, you must file the very form that acknowledges it's a business. When working for others (such as a non-profit) as a volunteer, it becomes an "occupation" if you have identified responsibilities, a consistent role, or any of many other aspects that show that you function as regular employee (even if unpaid and part-time.)



    But when in doubt: Ask the other party. They might even give you permission to do something outside of the contract terms.






    share|improve this answer














    Your contract makes it clear: no other "occupation or business". Having a garage sale is not a business; even the IRS says so. Selling regularly on Amazon is likely to be a business; selling one used item is not.



    The IRS says, at http://www.irs.gov/Charities-&-Non-Profits/Trade-or-Business--Defined




    "Trade or Business" Defined



    The term trade or business generally includes any activity carried on
    for the production of income from selling goods or performing
    services. It is not limited to integrated aggregates of assets,
    activities, and goodwill that comprise businesses for purposes of
    certain other provisions of the Internal Revenue Code. Activities of
    producing or distributing goods or performing services from which
    gross income is derived do not lose their identity as trades or
    businesses merely because they are carried on within a larger
    framework of other activities that may, or may not, be related to the
    organization's exempt purposes.




    The intent of your contract is to keep your work efforts solely focused on your job, even if it's off-hours. That way, there is no question that anything you develop, during that period of employment, no matter what day or time it may have been done, belongs to the company.



    You can volunteer, part-time, elsewhere, as long as you aren't given a regular job role. You can play sports and even be captain of the team, as long as you're not paid for it and you don't hold a business-related position in the organization.



    It's not all that fuzzy. If you want to sell your hobbycrafts on the side, you're breaking your contract as that is a side business. It's not about how -small- the business is, it's that you've agreed that you will have only one job, one occupation, and work for only one business. Period. And even if others get away with breaking their contract, you still would be risking your job if you do the same, and violating the terms to which you agreed.



    Here is an example from some slightly clearer language in a standard contract; it allows one area of exception that your contract may not spell out:



    http://thompsonhall.com/sample-employment-agreement-template-for-minnesota-businesses/




    The EMPLOYEE shall devote EMPLOYEE’s full business time and best
    efforts and abilities to the COMPANY in the performance of EMPLOYEE’s
    duties and responsibilities determined and assigned by the COMPANY’s
    _______ and shall engage in no other business, either directly or
    indirectly, in EMPLOYEE’s own behalf, or as an employee or
    independent contractor of another employer.



    Notwithstanding the above, the EMPLOYEE shall be permitted, to the
    extent such activities do not interfere with the performance of
    her/his duties and responsibilities to (i) manage her/his personal,
    financial and legal affairs, (ii) serve on civic or charitable boards
    or committees, (iii) serve on boards of other companies of
    organization that do not compete with COMPANY or any related entity in
    any shape or form, and the EMPLOYEE shall be entitled to receive and
    retain all remuneration received by her/him from the items listed in
    clauses (i) through (iii) of this paragraph.




    Another way to look at it is to consider whether that activity might be something you'd want treated as a business if it's profitable. You can't deduct your hobbycrafts costs if it's just a hobby, despite being required to report the income; if you want to deduct the costs from the income, then you have to define it as a business. The same applies for those selling on Amazon: to deduct the costs of doing business from the income produced, you must file the very form that acknowledges it's a business. When working for others (such as a non-profit) as a volunteer, it becomes an "occupation" if you have identified responsibilities, a consistent role, or any of many other aspects that show that you function as regular employee (even if unpaid and part-time.)



    But when in doubt: Ask the other party. They might even give you permission to do something outside of the contract terms.







    share|improve this answer














    share|improve this answer



    share|improve this answer








    edited Oct 13 '13 at 17:38

























    answered Oct 13 '13 at 16:23









    Debra

    50526




    50526











    • Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
      – Debra
      Oct 13 '13 at 17:07











    • This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
      – IDrinkandIKnowThings
      Oct 13 '13 at 17:15











    • Thanks. I apologize for not including some cites.
      – Debra
      Oct 13 '13 at 17:27










    • FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
      – Amy Blankenship
      Oct 13 '13 at 23:35










    • Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
      – Debra
      Oct 14 '13 at 0:30

















    • Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
      – Debra
      Oct 13 '13 at 17:07











    • This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
      – IDrinkandIKnowThings
      Oct 13 '13 at 17:15











    • Thanks. I apologize for not including some cites.
      – Debra
      Oct 13 '13 at 17:27










    • FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
      – Amy Blankenship
      Oct 13 '13 at 23:35










    • Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
      – Debra
      Oct 14 '13 at 0:30
















    Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
    – Debra
    Oct 13 '13 at 17:07





    Thanks, but I don't think I've made claims; the wording is clear. If one is unclear about what constitutes a "business or occupation", there are many sources, including the IRS. But the reality is that denying something as a "business" because it's small or just a side-line, is simple obfuscation; everyone knows it's still a business. But I'm adding some links, if that will help.
    – Debra
    Oct 13 '13 at 17:07













    This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
    – IDrinkandIKnowThings
    Oct 13 '13 at 17:15





    This site has a Back it up policy Due to semi recent changes to the FAQ it is no longer there but the policy exists. But thank you for the edits. I think that the answer is now very good.
    – IDrinkandIKnowThings
    Oct 13 '13 at 17:15













    Thanks. I apologize for not including some cites.
    – Debra
    Oct 13 '13 at 17:27




    Thanks. I apologize for not including some cites.
    – Debra
    Oct 13 '13 at 17:27












    FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
    – Amy Blankenship
    Oct 13 '13 at 23:35




    FWIW, you can line out things in the contract that you are not comfortable with for most companies. I've done that when the contract says that even things I do on my own time/equipment belong to the company, and I've never had a company refuse.
    – Amy Blankenship
    Oct 13 '13 at 23:35












    Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
    – Debra
    Oct 14 '13 at 0:30





    Amy, I think your comment is worth noting, even though it's hard to do this if you want the job so much that you're afraid of the risk. This is far preferable to breaking the contract to which you freely consented.
    – Debra
    Oct 14 '13 at 0:30













    up vote
    0
    down vote













    Ask HR.
    If they care about it they will let you know. If it is a borderline case they will have a form. Sometimes the key is just declaring the activity.



    Sometimes the size of enterprise or frequency of the event is what makes a difference. Becoming the treasurer of the little league baseball team while you are an accountant might not be considered an issue, because the team was never going to hire a professional accountant. Running the fall yard sale for the community is a once a year event, so they know it will be limited to only part of the year.



    They get concerned when the outside activities encroach into the workday or the work place. So don't use the work equipment to keep the books for the team, and don't use the copier to print flyers. Take related phone calls on your cell.






    share|improve this answer
























      up vote
      0
      down vote













      Ask HR.
      If they care about it they will let you know. If it is a borderline case they will have a form. Sometimes the key is just declaring the activity.



      Sometimes the size of enterprise or frequency of the event is what makes a difference. Becoming the treasurer of the little league baseball team while you are an accountant might not be considered an issue, because the team was never going to hire a professional accountant. Running the fall yard sale for the community is a once a year event, so they know it will be limited to only part of the year.



      They get concerned when the outside activities encroach into the workday or the work place. So don't use the work equipment to keep the books for the team, and don't use the copier to print flyers. Take related phone calls on your cell.






      share|improve this answer






















        up vote
        0
        down vote










        up vote
        0
        down vote









        Ask HR.
        If they care about it they will let you know. If it is a borderline case they will have a form. Sometimes the key is just declaring the activity.



        Sometimes the size of enterprise or frequency of the event is what makes a difference. Becoming the treasurer of the little league baseball team while you are an accountant might not be considered an issue, because the team was never going to hire a professional accountant. Running the fall yard sale for the community is a once a year event, so they know it will be limited to only part of the year.



        They get concerned when the outside activities encroach into the workday or the work place. So don't use the work equipment to keep the books for the team, and don't use the copier to print flyers. Take related phone calls on your cell.






        share|improve this answer












        Ask HR.
        If they care about it they will let you know. If it is a borderline case they will have a form. Sometimes the key is just declaring the activity.



        Sometimes the size of enterprise or frequency of the event is what makes a difference. Becoming the treasurer of the little league baseball team while you are an accountant might not be considered an issue, because the team was never going to hire a professional accountant. Running the fall yard sale for the community is a once a year event, so they know it will be limited to only part of the year.



        They get concerned when the outside activities encroach into the workday or the work place. So don't use the work equipment to keep the books for the team, and don't use the copier to print flyers. Take related phone calls on your cell.







        share|improve this answer












        share|improve this answer



        share|improve this answer










        answered Oct 14 '13 at 10:46









        mhoran_psprep

        40.3k463144




        40.3k463144












            Comments

            Popular posts from this blog

            What does second last employer means? [closed]

            List of Gilmore Girls characters

            Confectionery