HR says I cannot have keep my LLC (sole proprietorship) if I accept a full-time W2 job. Is this normal?

I have a little internet job which helps me pay the bills and makes my unemployment look official. It's a real sole-proprietorship LLC. The LLC is registered in California. I am looking for full-time employment in California as well.

I don't pay myself a salary but instead file taxes as "extra income." I have signed W2s with creative agencies which supply the leads for my business. I work with three creative agencies which required signing I-9s and the such.

When I was interviewing at a company a month ago, the HR person mentioned signing a document which prevents me from working on "monetized projects in my spare time," as she put it.

I don't see how there is a conflict of interest since my LLC is creative and the jobs I'm applying to have zero client or industry overlap.

Do all companies require this? What do I do?

usa jobs
usa jobs resume
usa hotel jobs
usajobs
usa jobs federal government
usa job in ksa
usa jobs
usa jobs login
usa jobs gov
usajobs.gov
www.usajobs.gov
usajobs.com
usajobs
usajobs.gov official