As the demand for skilled laborers continues, moonlighting is something contractors are trying to get ahead of — and they’re thinking outside the box.  Rather than relying solely on strict rules, many are finding creative ways to address the underlying reasons technicians take side work in the first place — from compensation and career growth to supporting personal connections in a safe, company-backed way. 

Why Technicians Moonlight 

At its core, moonlighting is about motivation. It’s usually not an evil technician trying to stick it to the man (or woman).  

“The drivers usually fall into two buckets: economic pressure — meaning they feel they need extra income — and enjoyment — some techs simply like the satisfaction of working with their hands on smaller projects for friends, family, or neighbors,” said Eddie McFarlane, 2025-2026 board chair for the Air Conditioning Contractors of America (ACCA). “The reality is that the demand for skilled labor is high, and technicians often see opportunities everywhere they go.” 

This dual motivation is what makes moonlighting such a tricky issue for contractors. It’s not always a matter of disloyalty or rule-breaking — often, it’s a sign of financial pressure, or just a tech trying to lend a hand.  

“We understand that, but at AirWorks, we encourage rest, recovery, and balance,” said Stephanie Allen, CEO of AirWorks Solutions in Somis, California. “You can’t pour from an empty cup, and our technicians do their best work when they’re recharged and spending quality time at home.” 

The Risks 

Understanding why technicians moonlight is only half the battle. The other half is understanding the ramifications. 

“Recently, I discovered an issue with one of our service technicians after noticing discrepancies in his clock-in and clock-out times,” said Phil Mandell, director of service operations at John Betlem Heating & Cooling Inc., and Cooney Air Conditioning & Heating, in New York. “A deeper look at GPS data revealed that he had been clocking in early, stopping at supply houses to buy parts for side jobs, and even staying clocked into company calls while working on personal side work.” 

While this may have been more of an exception than a rule, Mandell said, it underscores the need for vigilance when monitoring time and performance. 

From liability to customer relationships, moonlighting can create headaches for everyone involved.  

“Homeowners are often drawn to side work because it appears cheaper, but many don’t realize what they’re sacrificing,” Mandell said. “Most moonlighting technicians aren’t properly insured, and they often lack the ability — or incentive — to provide follow-up service when problems arise.” 

Not only does this put the customer and tech at risk, but it could damage the reputation of the HVACR industry as a whole — while also undercutting the legitimate, insured businesses.  

“For the technician, there’s liability — no insurance, no workers’ comp, and no safety net if something goes wrong,” McFarlane said. “If a side job results in property damage or injury, it could be financially devastating. For the employer, moonlighting creates exposure around brand reputation and customer trust.” 

If there happened to be a callback, code issue, or safety hazard, there’s a decent chance the homeowner would call the tech’s employer, not knowing the work was done “off the books.”  

“They also create confusion about accountability; customers may assume the company stands behind side work, which can damage trust and reputation,” Allen said.  

For example, Mandell said his company just recently dealt with a case involving a technician who installed a ductless system as a side job. 

“The equipment itself was under warranty, but when the line set failed, the homeowner expected us to resolve the issue at no cost,” said Mandell. “Unfortunately, because it was not our installation, the labor and materials were the customer’s responsibility. Understandably, they were frustrated, but it highlighted the exact pitfalls of side work: Customers assume the company is accountable, even when the work wasn’t authorized or performed through us.” 

Policies And Communication  

With so much at stake, most contractors agree that the only way to minimize moonlighting’s impact is to address it head-on with clear policies, consistent communication, and a shared understanding of expectations.  

“We’re very direct: We don’t want our technicians moonlighting because we want them rested and balanced,” said Allen.  

Most contractors make their expectations clear from the beginning — right when an employee is hired. 

“The reasoning is straightforward: Moonlighting not only undermines the company, but it exposes technicians to enormous risk,” Mandell said. A single incident — whether safety-, legal-, or liability-related — could cost them their livelihood.” 

McFarlane said at his company, they are upfront about why moonlighting isn’t allowed: the risks.  

“We talk about the liability, the lost protections, and the damage it can do to trust with the company and with customers,” McFarlane said. “More importantly, we try to meet the need that drives it in the first place — by paying competitively, offering overtime, and making sure team members feel financially supported … If people are moonlighting because of economic pressure, that’s a sign we need to make sure our pay, benefits, and incentive structures are strong enough that they don’t need to.” 

Solutions That Work 

Fair compensation is the most obvious way to curb moonlighting, but it’s only part of the equation. Contractors are finding that creative programs — from performance bonuses to family-and-friends discounts — can give technicians the financial security and personal flexibility they’re looking for, without exposing anyone to unnecessary risks.  

One of the most effective approaches is the friends-and-family discount program. By formalizing a way for techs to help their loved ones at a reduced cost, contractors remove the temptation to take jobs under the table while still letting technicians feel like the hero. 

“It was never about restriction — it was about creating a benefit,” Allen said. “Techs can still help their people, but with full company backing. … Most technicians don’t actually want to run their own business, they just want to help out. This policy gives them a safe, company-supported way to do that.” 

To find the right solution, contractors have to remember the reasons why a tech may be taking on side work.  

“The tech still gets recognized for generating the lead, and the customer gets the protection of dealing with a legitimate company,” McFarlane said. “That way, no one is left exposed, and the employee still feels they can ‘take care’ of people they care about. It’s been very successful in reducing the temptation to take jobs on the side.” 

Mandell said their friends-and-family discount program scales up to 35% off. Additionally, they’ve found success in reducing moonlighting by focusing on financial growth opportunities.  

“We offer a comprehensive spiff program and revenue goal bonuses, which allow technicians to significantly increase their earnings based on performance,” Mandell said.  

When It Happens  

Even with clear policies and generous incentives, moonlighting can still happen. When it does, contractors say the response needs to balance accountability with trust — and protect team morale as much as the company’s reputation. 

“We handle it with a private, respectful conversation. It’s about restoring trust, not embarrassing anyone,” Allen said. “We remind them of the risks, the family-and-friends option, and the importance of balance. By keeping our culture clear and supportive, we protect morale internally and maintain customer confidence.” 

At John Betlem and Cooney Air Conditioning, moonlighting is consequential — the first offense is a written warning and suspension, and the second is termination.  

“Team morale is always a delicate balance in situations like this, but I’ve found that transparency and consistency are key,” Mandell said. “The rule has been clearly communicated from day one, so everyone understands the consequences. At the end of the day, ethics and trust are non-negotiable. If either is broken, it’s impossible to move forward.” 

McFarlane said the way they handle moonlighting depends on the exact situation. 

“If someone made a mistake or didn’t understand the policy, it starts with a conversation and a reset. If it’s repeated or blatant, then it becomes a disciplinary issue,” McFarlane said. “The key is to avoid shaming — we want to maintain trust and morale. And with customers, we’re transparent but professional. We explain that the work wasn’t done under the company’s umbrella, and we outline what steps they can take to resolve it properly.” 

At the end of the day, the goal isn’t just to stop moonlighting — it’s to build a workplace where technicians feel supported, fairly compensated, and proud to work under the company name. When contractors balance clear policies with real solutions, they don’t just protect their brand — they strengthen loyalty, culture, and trust on every level.