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In states that have broad protections covering off-duty employee conduct, you can't curtail outside employment, unless you can prove the second job poses a conflict of interest that is detrimental to your business.
The behavior detrimentally affected the employer's reputation or ability to do business. Even outside of work, the opinions and actions of employees reflect on the employer.
If an employee has engaged in inappropriate or offensive behaviour outside of work, you may be justified in taking them through a disciplinary procedure where their actions have damaged, or threaten to damage, the reputation of the business.
So if the reason for your termination is not illegal under the laws of your state, then yes, your employer can fire you for what you do on your own time, outside of work.
Most states offer protection to employees who engage in legal activities off-the-clock. This means you cannot be terminated by your employer as long as what you are doing is legal.
Privacy Laws and Employees' Off-Duty Conduct In the private sector, a number of laws prohibit employers from intruding into their employees' lives outside of work. Some state constitutions specifically include a right to privacy, which prevents private employers from looking into their employees' off-duty activity.
While it is true that employees guilty of drug use, even outside work, leave themselves exposed to dismissal on grounds of either capability, conduct or some other substantial reason (especially if use of the drugs in question is itself illegal) that decision cannot be automatic.
The Colorado Lawful Off-Duty Activity Statute, codified at C.R.S. § 24-34-402.5, prohibits employers from taking any adverse employment action against a job applicant or employee as a result of (1) any lawful activity (2) off the premises of the employer (3) during nonworking hours.
In almost all cases, an employer can legally end someone's employment for inappropriate behavior during personal time. Generally speaking, you can't be arrested for saying abhorrent things, but you can be fired.
Nonexempt employees who are covered by the Fair Labor Standards Act can't be asked to do work off the clock. For instance, workers can't be required to do prep work or clean up outside their paid shifts. What's more, employers should be wary of any request to be paid in cash or off the books.