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As long as there is no conflict of interest or the side work doesn't impact our schedule or the employee's performance, I don't have a problem with it. One of my guys does weekend yard work when we're not working and as long as he's ther for me when I need nim I'm cool with it. Mind you, if they were doing weekend demo, that's another thing entirely.
That reminds me of a story that happened years ago. I was still out in the field and slowly moving into the office. We had a superintendent working on a project that seem to take forever and ever, he was always coming up with a new project that was required at the time and never seemed part of our contract, well after the project was over he went to work for the contractor right after our scope was done. Yep the GC was basically using our labor to help their project along.