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What is your policy on side work?

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I was wondering what policy shops are using for side work? I know of a shop that is losing its lead tech because he is going into business for himself. Can't fault someone for trying to better themselves, right? Then I got the rest of the story. You see this tech has been doing a great deal of side work. For example it was recently discovered the shop he works for has lost more than a few clients to him. This tech has also been enlisting the help of a junior tech from the same shop to work in the evenings for cash. Needless to say those two are under producing at the shop during the day. I get a tech helping out family and friends, but to me this guy is poaching customers and has become toxic to the shop.

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