The major dangers of having a side hustle

Nearly one in every seven Americans makes money outside their full-time jobs, according to a new Bankrate survey of more than 1,000 adults.

While so-called side hustles provide the obvious benefits of additional income and a potential creative outlet, second jobs can also bring unforeseen challenges.

“Overall, side hustles can be a great thing for both employer and employee. Picking up a job on nights and weekends can help people get new skills, try on different types of experiences, and expand their networks—all of which can benefit their full-time work,” says Adrian Granzella Larssen, editor-at-large at online career site The Muse.

But people can overextend themselves and potential conflicts of interest may even result in legal ramifications. You shouldn’t hide your side hustle from your employer just because it might present conflicts, though.

Speak to your full-time employer ASAP

The best way to avoid any kerfuffle at all is to speak with your full-time employer or human resources manager, says Justin Cupler, editor and savings expert at personal finance site The Penny Hoarder.

Every employer has a different policy, so before you even take on a side gig, look at your employee handbook and read the fine print on non-company-related work, adds Larssen.

“Many employers allow employees to have side gigs, as long as the work is not a conflict of interest and doesn’t hinder your ability to get your job done. In some cases, your employer will also want you to disclose what you’re working on,” says Larssen.

This next tip might seem like a no-brainer: But a key thing to remember when you’re trying to balance both jobs is not to use any of your employer-owned tools, including laptops, cellphones and any software programs.

“It might seem easy enough if your boss doesn’t mind you bringing your computer home,” says Larssen, “but to avoid any backlash from your employer, you want to keep everything absolutely separate.”

As technology has facilitated the ability to switch from one job to the next with a single click, employees can get easily tempted to pursue their side gigs while on their day jobs.

“Employers can also run into workers who can’t resist the urge to do their side gig work at their full-time job. Even something as small as checking an email can be enough to draw the worker’s attention away from their full-time work,” Cupler says.

Beyond keeping your devices separate, make sure the intellectual property is yours — not your full-time employer’s, advises Larssen.

Say, for example, you are building a startup on the side: Your employer might find that there are grounds to claim the IP belongs to the company.