Topic

Messages

Policy On Employee Freelancing

I would like to know your policies on employees freelancing? We have recently written our "EMPLOYEE POLICY MANUAL" and there are concerns about the freelance section. The owners (there are 3 of us) have agreed that the employees can freelance but with certain restrictions.

1. No work can be done for a company account or viewed as "competition" and should that it would be best to get approval from the president.
2. Company equipment can be used with permission from an owner and materials must be tracked and paid for. (A few employees do not like this)
3. Freelance can not effect the availability of an employee. For example having to leave for day press checks etc.
4. In the case of "not for profit" jobs such as a church flyer, friends wedding announcement etc. we basically have given them free reign and said they are free to use equipment without permission.

Where the glitch comes in is this-they don't like the idea that they would have to "get permission" on freelance jobs that they get paid for. I would love to hear input from any firms that have dealt with this.

Jean KlÈndt
KlÈndt Hosmer

Included in our letter of agreement is a non-compete, including no freelancing, unless the President approves a specific exemption. For example one of our supervisors was doing some work for her brother's small business when she joined our firm. Since it was small and didn't interfere with her work for us in any way we allowed her to continue the project.

Shanny Morgenstern
Morningstar Communications

If the employees do not want to get permission to do freelance work and are using the company's equipment, then do not allow the use of company equipment.

Carol Stano
Controller
Drone & Mueller and Associates

We don't allow freelance work for anyone that would be competitive. If they do freelance, it must be invisible to us. If our staff has complaints about this, I haven't heard it. You're not in business to support their businesses. If you are paying them a fair wage, that's all you need to do.

Kim Tackett
Tackett-Barbaria Design Group

You have been very generous, but might be better served if you asked employees to do freelance work out of the office and on their own time. No misinterpreting that mandate! All probono work must flow through the office as a legitimate non-billable job.

We hired a professional HR consultant to draft our manual. If you're interested, the following is an excerpt addressing your question:

"CONFLICT OF INTEREST AND OUTSIDE EMPLOYMENT

# *COMPANY NAME** expects employees to conduct business according to the highest ethical standards of conduct. Employees are expected to devote their best efforts to the interests of the company. Business dealings that appear to create a conflict between the interests of **COMPANY NAME** and an employee are unacceptable. **COMPANY NAME** recognizes the right of associates to engage in activities outside of their employment, which are of a private nature and unrelated to our business. A potential or actual conflict of interest occurs whenever an employee is in a position to influence a decision that may result in a personal gain for the employee or an immediate family member (i.e., spouse or significant other, children, parents, siblings) as a result of the companyÁs business dealings.

If an employee has any question whether an action or proposed course of conduct would create a conflict of interest, he or she should immediately contact management to obtain advice on the issue."

Roxanne Cowan
Rutherford Bolen Group Integrated Marketing

As a company, we have each and every employee sign non-compete, non-disclosure form. While this will curtail their bringing freelance work into the workplace, we are sure people will earn extra money, especially now, if they can. No employee is permitted to utilize company equipment for any "freelance" work. If they are doing something personal for themselves, ie. wedding, birthday, anniversary, stuff like that, we don't give them a hard time. Your people shouldn't have a problem with the rules you've set in place. If the equipment breaks down or a problem arises from what that they are working on, will they pay for it to be repaired, replaced, etc? And what about the replenishment of materials? If they don't get permission, you have no way of keeping track and you lose money. And, if you have a large project you need to get out, and the supplies have mysteriously dissapeared, you miss your deadline. That is no good for anyone. If they want to freelance, they should have their own equipment to work with. Kinkos is open 24 hours a day - for christ sake...why do they need to burden your office staff with extra billing of materials, etc.

Staci
GreenEggz no ham, Inc.

Are these full time employees that are picking up freelance on the side? Whether they are or not, if they want to maintain a freelance business individually they should be able to run it out of their homes; i.e. their own equipment. That is what our freelancers do.

David Tracht
Full Circle Productions

We don't like to use "freelance employees" because of the laws getting so tight. Our work has to be done in-house (not off-site) and when people are here using our equipment, doing the same type of work as our staff people, the difference between freelance and staff becomes too cloudy. Plus we could be setting ourselves up for Labor Board Issues if someone were to get upset and make a phone call - and there we would be - liable. We hire "temp employees" or use temp agencies for this reason. That way there are no questions about "overtime, withholding taxes, etc.". We wish it could be easier, but the risk is more than we'd like to take.

Jo Bos
Bos Design

Our company manual states that using company equipment for anything other than company business is strictly prohibited, and is to be used for company work only. (including telephones and supplies) A first time offense is grounds for termination

Angela Carter
Realm Communications

Our agency allows freelance work as long as it does not interfere with Agency work and as long as the employee does not use Agency equipment or resources without permission.

Lisa Tuckett
Director of Operations
Hodgson/Meyers

This is a big problem for our company. Paying for freelance who do non-billable work. I constantly fight with our supervisors to make sure they do not work on in-house work. I also need help on freelance policies.

Ed Miller
Graphica Group

I think that your policy is very lenient! Our policy is to keep it out of the office.

Laura Kennedy
Maier Advertising, Inc.

When you are an employee, it's not freelancing, it's moonlighting, which is a whole different thing. I know several large agencies consider it a fireable offense. On the other hand, lots of agencies let creatives do "freelance" creative work, then submit it under the agency's name to award shows, which is good for the agency's reputation, and good for morale. Typically it's a case-by-case situation. If it's good for the employee and the agency, okay. If the employee is running a whole other business that interferes with their responsibilities to the agency, then no. I'd write in the employee handbook that all moonlighting/freelancing must be limited in scope and approved in advance, and see what happens, because it can be a good thing for all within reason.

Dawn Jaworski
Gabriel deGrood Bendt

It is against our policy. We feel we are paying for their talents and their minds. I am an owner and a former freelancer and it is difficult to take this stance because I know if it had not been for freelance in my earlier career days I would not be in this position today. Our policy is you are subject to termination and I would enforce that. However, I'm no fool and know it takes place. The unwritten policy is what you do on your own time is your business but if I see it in the office or I see that it affects your work then your gone. Somewhat hypocritical but fair.

Sonny Goodall Lighthouse, Inc.