Why White-Collar Workers Are Moonlighting and What Employers Should Understand
The term “moonlighting” conjures images of gritty, blue-collar workers toiling away in a second job “by the light of the moon” in the 1950s. Fast forward to 2025, and while the moon still shines, the phenomenon has distinctly moved online, into the realm of white-collar professionals. For many of us in the tech, creative, and knowledge-based industries, moonlighting isn’t a secret side hustle born of pure greed; it’s a strategic, often necessary, and sometimes liberating, extension of our professional lives.
Moonlighting refers to the second job or freelance work in addition to our primary full-time employment, often without our main employer’s explicit knowledge. While it might raise eyebrows in the boardroom, for us, it’s a complex decision driven by a confluence of economic realities, newfound flexibility, and a deep-seated desire for growth and autonomy.
The Need to Moonlight
Step into the shoes of an employee to understand why moonlighting has become so prevalent and more often than not, necessary. Sohum Parekh – the startup swindler has brought moonlighting back into the limelight for many reasons. He didn’t just fake his degree and fooled big name employers like X, but his octopus tentacles spread across not one, not two but eight jobs at one go. Could it have been okay had he been great at his job? Or if he didn’t get caught several times? Should the law take his keyboard away?
Supplemental Income in a Tough Economy
Let’s be brutally honest: the primary driver for many is simply supplemental income. We live in an era of relentless inflation, where the cost of living—from groceries to housing, education, and healthcare—seems to climb relentlessly, while our salaries, for many, remain stubbornly stagnant. That annual 3-5% raise often barely keeps pace with inflation, let alone any meaningful improvement in financial security or future planning.
The salaryman sees his savings dwindle, dreams of homeownership recede, and the pressure to provide for family intensify. A single income, even a seemingly “good” white-collar salary, often isn’t enough to navigate these turbulent economic waters comfortably. Moonlighting, in this context, isn’t a luxury; it’s a necessity. It’s the difference between living paycheck to paycheck and building a small emergency fund, between affording quality education for children and settling for less, or between managing debt and falling further behind. People are not trying to get rich quick; they’re trying to stay afloat and build a semblance of financial resilience in an increasingly unpredictable world.
Unlocking Time and Flexibility, Remotely
The global shift to remote work has been a game-changer. Suddenly, the hours previously spent commuting—often two or more hours a day—have been reclaimed. This newfound flexibility isn’t just about avoiding traffic; it’s about optimizing time. The transition between tasks is now seamless, and personal lives are better balanced. Plus there’s time for additional work.
The rigid 9-to-5 office structure, which often included unproductive hours, has given way to an output-focused model for many remote roles. If one can complete one’s primary job responsibilities effectively and efficiently within the contracted hours, there’s time freed up to do more. People have learnt to leverage the efficiencies of remote work to maximize their earning potential and productivity across multiple projects. The technology that enables remote collaboration also enables simultaneous engagement with diverse opportunities.
Skill-Building, Autonomy, and Passion Projects
For many white-collar professionals, moonlighting is about professional growth and personal fulfillment that primary corporate roles may not always provide. Main jobs, while stable, can sometimes become creatively stifling or technically repetitive. Moonlighting offers a low-risk environment to experiment with new technologies, learn different industry best practices, or hone niche skills that might not be directly relevant to our current full-time role but are crucial for our long-term career trajectory. It’s a self-funded professional development program.
In large organizations, bureaucracy, endless meetings, and layers of approval can stifle innovation. Freelance or second-job projects often offer a level of autonomy, direct client interaction, and creative control that is deeply satisfying. This is an opportunity to become decision-maker, problem-solver, and the direct beneficiaries of the creative output. It’s a chance to escape the corporate machine and own the work.
Sometimes, moonlighting is simply about pursuing a passion that doesn’t fit neatly into a corporate job description. It could be building a niche app, writing content for a cause, or designing for a small business. These projects, while paid, offer a sense of purpose and fulfillment that transcends mere compensation. There are also some who do it simply because their day-jobs are soul crushing, and moonlighting can be fun.
There is a particular gentleman who is a banker by day – his job as a bean counter was turning him into a monster at home until his local bakery offered him a job for the night. He now earns himself a pound of nankhatai (his weakness) for a month of cleaning up at the bakery. That moonlighting saved his marriage and perhaps his job. But this is a rare case of creative engagement that prevented a burnout from the monotony of a single role.
Walking The Legal Tightrope
The legality of moonlighting is murky, varying significantly by geography and, crucially, by the specifics of employment contracts.
In India, the situation is particularly ambiguous. Moonlighting isn’t explicitly illegal unless our employment contracts specifically prohibit it. However, dual employment is generally discouraged, and some state-level “Shops and Establishments Acts” (which govern working conditions) can be interpreted to frown upon it, especially in the IT sector. Take the case of Soham Parekh, a software engineer reportedly caught moonlighting for several firms, serves as a stark reminder of the very real consequences when these lines are crossed, leading to public exposure and job loss.
In contrast, countries like the US and UK generally have a more permissive stance. Moonlighting is often allowed unless it presents a direct conflict of interest with our primary employer or explicitly breaches a clause in our contract (e.g., a non-compete or a clause requiring exclusive service). The onus is often on the employee to ensure no proprietary information is shared, no company resources are used, and no direct competition is created. This distinction is crucial. It means that in some regions, moonlighting can be transparent and legitimate while in others, it remains a clandestine activity.
The key is always to meticulously review employment contracts. Look for clauses on “exclusive employment”, “conflict of interest”, “use of company property”, and “intellectual property ownership”. The fear of breaching these terms, however vaguely worded, often dictates the level of secrecy one should maintain.
Employers Discover Moonlighters
From an employer’s perspective, unchecked moonlighting can understandably raise concerns. They worry about productivity loss, fearing that our energy is divided. They fret over data leaks and intellectual property theft, especially if their employees are working for a competitor. Conflicts of interest are a legitimate concern, as is the potential for burnout, usually blamed on the primary employment.
Major Indian IT companies like Infosys and Wipro take strict actions, with Wipro famously firing 300 employees in 2022 over moonlighting. These actions, while perhaps legally justified by their contracts, send a chilling message through the employee community. They foster an environment of fear and secrecy, pushing moonlighting further underground rather than addressing its root causes.
A Call for Understanding
Instead of outright bans and punitive measures, a more empathetic, transparent, and flexible approach from employers could lead to a win-win situation. If employers truly want to mitigate the perceived risks of moonlighting, they need to understand why people do it and address those underlying needs.
Instead of vague clauses that leave employees guessing, clearly defined contract terms regarding external work, outlining what is permissible (e.g., non-competing, non-conflicting work) and what is not, would foster trust. If boundaries are marked, employees would operate within them, rather than feeling forced to hide post-curricular activities.
If employers are concerned about losing talent, offer “gig-style” assignments in-house! Creating internal projects or allowing employees to contribute to different departments could satisfy the desire for skill-building and variety, while keeping talent and creativity within the organization.
In this era of remote work, the focus should shift from “time spent” to “results delivered.” If people consistently meet or exceed performance metrics in their primary roles, does it truly matter how they manage time outside of those core responsibilities?
Perhaps the most fundamental solution is giving employees a living wage, offering opportunities for meaningful raises that keep pace with the economy, and promoting a work culture that values work-life balance and employee well-being. When people feel secure and appreciated, their loyalty naturally increases, and the desire to seek external opportunities purely for financial reasons lessens.
Moonlighting among white-collar workers is a complex phenomenon, far removed from its historical origins. It’s often a strategic choice, born out of economic necessity, enabled by the flexibility of remote work, and fueled by a desire for continuous growth, autonomy, and personal fulfillment.
While employers have legitimate concerns about productivity and conflicts of interest, a punitive approach often misses the mark. By understanding the motivations of moonlighters and adapting their approaches, employers can build a more engaged, skilled, and loyal workforce. The future of work demands a nuanced conversation, not just a strict decree.