Can an employee also be a vendor for the same company?

I have a coworker that is starting a
drafting company. By law, can he be
employed here and also receive
compensation for outsource work? If so,
I would like to do the same…

Asked on July 19, 2017 under Employment Labor Law, Arkansas

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

There is no legal prohibition against a worker also being  vendor of athe same company. Therefore, unless this action violates the terms of a union agreement or employment contract it is legal. Bottom line, it is a decision that can be made at an employer's discretion.


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