Main job using my side hustle as a supplier

[APUTZ]

I was curious about the potential legal problems surrounding me owning a side business that supplies my main job with materials, as I am the person to pick the supplier. I'm not trying to get into trouble, but I work for a large corporation and they are in need of a new supplier, and I feel that I could open a business to deal with that problem. I just dont want to get into any potential kind of embezzelment or other legal conflicts that I am not aware of. I see the potential ethical issues with awarding myself with a contract, but I cant think of a legal reason as to why I couldn't, assuming there isnt something written in my employment contract. Thanks for the advice!

 

[quincy]

I was curious about the potential legal problems surrounding me owning a side business that supplies my main job with materials, as I am the person to pick the supplier. I'm not trying to get into trouble, but I work for a large corporation and they are in need of a new supplier, and I feel that I could open a business to deal with that problem. I just dont want to get into any potential kind of embezzelment or other legal conflicts that I am not aware of. I see the potential ethical issues with awarding myself with a contract, but I cant think of a legal reason as to why I couldn't, assuming there isnt something written in my employment contract. Thanks for the advice!

What is the name of your state?

Read your employment contract first. You are smart to check out the legalities before moving forward.

 

[APUTZ]

I work in Kansas

 

[adjusterjack]

I see the potential ethical issues with awarding myself with a contract, but I cant think of a legal reason as to why I couldn't,

Why don't you ask your employer for permission to arrange it?

That would be the honest thing to do.

 

[APUTZ]

Because I don't want to show up to HR asking them if its ok if I commit a crime. Not the best look even though I'm not trying to do anything illegal. I'd rather do my research first.

 

[adjusterjack]

It's not going to be a crime if your employer consents to you being a middleman to obtain supplies.

If you do it secretly, it may still not be a crime, but it can certainly get you fired.

 

[quincy]

Because I don't want to show up to HR asking them if its ok if I commit a crime. Not the best look even though I'm not trying to do anything illegal. I'd rather do my research first.

You probably will be required by your employer to take bids from other suppliers.

 

[Zigner]

Generally, hiding this from your private-sector employer is not going to be illegal, but hiding this from your private-sector employer is an easy way to get fired.

 

[APUTZ]

Thanks for everyones input

 

[quincy]

Thanks for everyones input

We appreciate the thanks, APUTZ.

 

[zddoodah]

There's no real legal issue here (unless your employer is a government agency or contractor). Make your supervisor and upper management aware that you own a company that could be used as a supplier. If your boss or management is aware of the arrangement and consents to it, then you're golden.

 

[quincy]

APUTZ, before you invest any time or money into opening this material-supply business, you will want to make sure that, one, your contract allows for you working this side business, and, two, that your employer does not require open bidding to meet its material supply needs.

I can see potential issues if your side business supplies materials to companies other than the one that currently employs you.