Is it a conflict of interest to work as a contractor (1099) for one client and an employee (W2) for another?

Asked 12 months ago - Cincinnati, OH

For the past three years I have been an independent contractor (1099). I was recently offered a permanent position (W2) with one of the companies I work for, and I accepted the position. Is it illegal to continue working for other clients as a contractor? Or more specifically, is this a conflict of interest if I am performing the same exact job for different clients?

Attorney answers (1)

  1. Lori Ann Strobl

    Contributor Level 13

    Answered . The answer to your question is dependent upon information that is not provided here. Typically, employers, either through a contract or an employee handbook, sets forth policies which govern outside employment. Usually, employers do not prohibit outside employment, as a general rule, as long as the outside work does not interfere with your job duties for the employer and does not constitute work for a competitor. Given the information provided, it seems that the work you are doing as an independent contractor could be in competition with your employer. I suggest that you carefully review the employment contract, assuming there is one, or the employee manual regarding this issue. At the end of the day, you may need to consult an attorney regarding this issue and for assistance in interpreting the contract and/or employee manual. Feel free to contact my office to schedule a consultation.

    Lori A. Strobl
    Strobl & Associates, Co LPA
    1015 E. Centerville Station Rd.
    Centerville, Ohio 45459
    www.strobllaw.com
    (937) 496-1450

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