Outside Employment: Maryland

This Outside Employment policy explains how Maryland employers can set expectations around second jobs while respecting employees' right to work elsewhere. Maryland law (Md. Code, Labor and Employment § 3-716) limits when you can restrict outside employment for certain lower-wage employees, so your policy should focus on legitimate business needs like performance, scheduling, confidentiality, conflicts of interest, and use of your organization's time and resources.

The History Behind Outside Employment Policies in Maryland

This Outside Employment policy falls under Workplace Rules & Logistics for MD employers. In the past, most employers handled moonlighting with broad, one-size-fits-all rules, often requiring permission for any outside work. That approach was convenient, but it also made it easy to overreach, especially for lower-wage workers who pick up extra hours to make ends meet.

Maryland put real limits on that old playbook when it enacted a "low-wage employee" protection codified in Md. Code, Labor and Employment § 3-716. The law targets a specific practice: blanket bans on outside employment for lower-paid employees. In plain terms, if someone earns at or below the statute's minimum pay threshold (150% of the state minimum wage), your organization generally can't restrict them from taking another job, unless you can point to a narrow, legitimate reason (think conflicts of interest, misuse of confidential information, or safety and scheduling problems). The idea is that if someone's wages are low, the state won't let employers shut down their off-hours earning power just because it's administratively easier.

That's why this policy starts with the threshold and then pivots to the stuff that still matters for everyone, like performance, attendance, confidentiality, and not using work time or tools for side gigs. Maryland didn't outlaw common sense, it just pushed employers to be more precise. Instead of "no moonlighting," the Maryland approach is "do what you want off the clock, but don't bring it into the workplace in a way that hurts the job, creates a conflict, or risks our data."

Which Law is the Outside Employment Policy Meant to Comply With?

If you create and distribute an Outside Employment Policy for your Maryland-based employees, it is in an effort to comply with Maryland's Maryland Code, Labor and Employment, Section 3-716.

How to Write a Maryland-Specific Outside Employment Policy

• Start with "why" and introduce the concept, explain that your organization supports outside employment while protecting work performance and workplace standards.
• Define who the policy applies to by setting an earnings threshold for coverage.
• Require employees to meet performance and attendance expectations even when working another job.
• Reinforce confidentiality obligations for employees with outside work.
• Prohibit doing outside work on your organization's time or using your organization's resources.
• Set expectations for professional conduct regardless of outside employment.
• Reserve the right to reevaluate employment status when outside work negatively impacts attendance, productivity, or conduct.
• Encourage employees to ask HR for guidance before accepting outside work that could intersect with their role.

When to Include this Policy in Your Employee Handbook

The law does not require you to publish a policy or issue a specific notice. That said, you still have to comply with the requirements that apply to you as an employer. 

Most employers can skip a policy on this and be fine, as long as they comply behind the scenes when it applies. Consider adding it only if you have employees who are likely to run into this situation, your industry makes it more relevant, or your existing policies leave a gap. Otherwise, this is better handled as a targeted procedure or an one-off communication when the scenario actually comes up. 

Other Considerations

The law applies to Maryland employers who have at least 1 employee in the US.

Exceptions

None