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Workers With These 6 Side Hustles Raise Red Flags For Recruiters, According To A CEO
Samira Vishwas | October 12, 2025 2:25 AM CST

In today’s economy, having a side hustle is becoming the norm. It’s a way to make a little extra money while also building skills and showing ambition. However, some side hustles might signal the worst to recruiters and hiring managers, suggesting that the candidate’s job performance could be impacted.

David Garcia, co-founder and CEO of ScoutLogic, a bulk background check service, explains how side hustles might hurt the hiring process more than they help. He explains, “When we’re conducting background screenings for our clients, hospitals, universities, and financial institutions, we’re looking for more than just criminal records. We’re building a complete picture of a candidate’s professional judgment and priorities.” While side hustles don’t automatically disqualify a candidate, Garcia shares the ones that recruiters tend to view in a negative light.

Here are 6 side hustles that might raise some red flags for recruiters:

1. High-risk crypto and NFT trading

Getting involved in cryptocurrency and trading has become increasingly popular, with many seeing the profit potential. The quick and drastic price changes make it seem like a fast, easy way to make money, but it often requires time and dedication, which can sometimes bleed over into the workplace. These side hustles also tend to involve impulsive, high-risk decision-making, something that companies might not want in an employee.

Friends Stock | Shutterstock

“We’ve seen cases where candidates were actively day-trading during work hours or had public social media profiles promoting risky investment schemes,” Garcia claims. “For positions requiring financial responsibility or fiduciary duty, this raises immediate concerns about judgment and potential conflicts of interest.”

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2. Multi-level marketing schemes

Participation in a multi-level marketing (MLM) scheme is one of the biggest red flags, according to Garcia. The tactics used by the people involved in MLMs tend to be aggressive and unprofessional, bringing the ethics of the candidate into question.

Garcia says, “Candidates involved in MLMs frequently blur personal and professional boundaries. We’ve documented instances where employees used company resources to recruit coworkers, or worse, tried to sell products to clients during business interaction.”

3. Controversial influencer activities

Hiring someone with a significant online presence can be a plus for a company, but only if the values and opinions the candidate promotes align with those of the business. An employee posting inappropriate activities or behavior could be damaging to a brand’s reputation. Social media presence is now often part of a standard background screening.

woman promoting her influencer brand LightField Studios | Shutterstock

Garcia shares, “One of our hospital clients discovered a nursing candidate ran an Instagram account featuring alcohol-heavy party content and politically divisive commentary. The content directly contradicted the professional image the hospital needed to maintain, even though it wasn’t illegal.”

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4. Gig economy jobs

Doing gig work like ridesharing, delivery driving, or other freelance jobs isn’t necessarily bad, but it can potentially indicate bigger problems with a candidate’s financial situation. It also raises questions about their ability to dedicate their time and effort to their job.

“If someone with a six-figure salary history is driving for Uber on weekends, it suggests
either serious financial mismanagement or that something else is going on,” Garcia explains. “For positions requiring security clearances or handling sensitive information, unexplained financial stress is a significant concern.”

5. Overly time-intensive businesses

Running a side hustle that requires a significant time investment is not particularly desirable in an employee. They can sometimes bring about conflicts with full-time work and steal a worker’s attention. This may be even more problematic if the candidate’s business is in direct competition with the company they are trying to work for.

woman working on time-intensive side business Chay_Tee | Shutterstock

“When someone’s LinkedIn shows they’re running a ‘growing consulting practice’ or ‘scaling an e-commerce business,’ recruiters question whether they’re truly committed to
full-time employment or just using it as a safety net,” Garcia adds.

6. Politically sensitive ventures

Especially in industries where businesses and employees are expected to maintain neutrality towards politics, getting involved in a side hustle that communicates a specific political message or opinion could be viewed negatively by a potential employer. Companies typically want to appear professional and make their diverse client bases feel comfortable and welcomed.

“We worked with a law firm that discovered a candidate ran a politically charged blog that regularly attacked the types of clients the firm represented,” Garcia recalls. “Even if the candidate could separate personal views from professional duties, the perception problem was too great.”

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Kayla Asbach is a writer currently working on her bachelor’s degree at the University of Central Florida. She covers relationships, psychology, self-help, pop culture, and human interest topics.


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