Looking for a new job while still employed is a common occurrence today. With a tight labor market and inflation driving up prices, it’s understandable that employees may start searching for better pay and opportunities. However, actively job hunting while on the clock or using company resources for the search crosses ethical lines. Employers have to walk a fine line between prohibiting unethical behavior and respecting employee rights.
Is looking for a new job cause for termination?
In most cases, simply looking for another job is not grounds for termination. The exceptions are if an employee is using work time and resources in the job search. Employees have a reasonable expectation of privacy when using personal devices and accounts off the clock. Searches done on break time or after work would be protected in most cases.
It comes down to focusing on work while on the clock. Employees who let the job search distract them from completing their required tasks are more likely to face discipline or termination. Downloading job listings, filling out applications, or browsing job sites during work hours could be prohibited under company policy or considered time theft.
When can you legally fire an employee for job searching?
There are a few clear cases when termination would be allowed for looking for other work:
- Using a work computer, email, printer, or phone for the job search
- Conducting searches or phone interviews during paid work time
- Neglecting job duties due to distraction from the search process
- Sharing confidential company information with prospective employers
- Lying about sick time to attend interviews
In these situations, the employee is misusing work resources or committing time theft. The unethical behavior often violates company policy, providing grounds for termination.
Can you prohibit employees from looking for other jobs?
Employers cannot issue a blanket ban on employees looking for other work. This would go against the general protection of employee rights. However, reasonable restrictions can be implemented, such as:
- Banning the use of company equipment for job searches
- Prohibiting searches during paid working time
- Requiring employees to maintain focus on job duties during shifts
Policies should focus on protecting workplace resources and productivity. Outright prohibiting external job searches crosses the line. Targeting overly broad restrictions against employees looking elsewhere while still employed can prompt legal issues.
Are non-compete and non-solicitation agreements enforceable?
Some employers require workers to sign non-compete agreements banning them from joining or starting competing businesses for a period of time after leaving. Non-solicitation agreements prohibit contacting company clients or recruiting coworkers away after departing. The enforceability of these contracts varies by state law and the reasonableness of restrictions.
Courts may strike down non-competes with unreasonable duration or scope. Most states require the agreements protect legitimate business interests like trade secrets or client relationships. Outright bans on employees joining or starting any competing business are hard to defend. Reasonable limits on soliciting former co-workers or customers have better odds of being upheld.
Key factors on enforceability of non-compete and non-solicitation agreements:
- Must have legitimate business purpose
- Restrictions should be limited in time and scope
- Typically must be signed at start of employment
- Employer needs to provide consideration like higher pay
- State law plays a major role
What are the risks of firing for job searching?
Terminating employees simply for seeking new opportunities can prompt legal action. Wrongful termination claims or lawsuits are possible even in at-will employment states. The risks mainly center around retaliation and discrimination allegations.
If one employee is fired for job searching while others are not punished, discrimination may be alleged. Protected classes under federal law include race, gender, religion, age over 40, and disability. Retaliation claims can arise if an employer seems to be targeting the termination as punishment for looking elsewhere.
Even if no law is technically broken, the appearance of retaliation or bias can damage employer brand and reputation. Terminations should always be carefully considered and documented to avoid seeming arbitrary or unfair.
Potential legal claims from questionable terminations for job searching:
- Wrongful termination
- Discrimination
- Retaliation
- Breach of implied contract
- Defamation
Best practices for addressing employee job searches
Instead of jumping to terminate employees looking elsewhere, consider constructive options like:
- Coaching on maintaining focus during work hours
- Reminders about policies on use of company equipment
- Checking on job satisfaction and room for advancement
- Being open to counteroffers if valued employee
- Reviewing if compensation matches current market rates
Some turnover is inevitable in any workplace. Keeping policies reasonable and documenting issues is smarter than outright prohibition. Termination should be a last resort reserved for violations of ethics, theft, or neglect of duties.
Conclusion
Looking for a new job is not automatically grounds for termination. Employers need to walk a careful line to avoid claims of wrongful firing or discrimination. Banning some activities related to job searches is reasonable to protect workplace resources. But employees still have rights that should be respected. With the right policies and even-handed enforcement, employers can avoid reactive terminations and maintain morale.