A coworker working part time for the competition.?

You know what? You are not responsible for anyone else's actions. You can't control what they do or don't do.

Since you are not directly involved or affected by your friend's actions, butt out. It's her problem to deal with when your employer finds out. This is what happens when you develop friendships with co-workers outside of the workplace. It can go bad very quickly, an cause problems at work. You are finding out first hand that it's a huge mistake.

You would get better advice if we knew what kind of company you work for. How is competition so serious??

EDIT: If you have ads in your publications, then find out who the advertisers are in the quarterly paper and go after them for your own paper. It seems like they would get better results with weekly exposure than with quarterly exposure. Go get them for yourself, then the other paper will lose advertisers. This is a dog eat dog world we live in and competition drives private enterprise and capitalism.

Difficult situation to be sure. First, even though this strains the limits of ethical conduct in the work place I must ask: is there a policy (other than common sense) that prohibits this conduct? Is your company operating at 100% capacity? Ultimately if your employer is finding it difficult to stay profitable in this economy and your friend is assisting with that difficulty then his actions are detrimental to you and your well being. Under those circumstances your well being should guide your actions whether to reveal his lack of loyalty. if both companies are operating at 100% capacity and profitable then less harm would result if you kept his treachery silent. In either situation I would distance myself from his because when your employer finds out this was happening and you were aware and said nothing then your employment may be at peril.

Personally, I would give your friend 2 weeks to cease his disloyal behavior and inform him that if he doesn't then he has put you in a trick box and you must inform your employer for fear of your job security. Good luck....not easy is it?

ADDITIONAL INPUT. I am putting myself in the shoes of the employer. Given the circumstances you present and if you didn't tell me about it I would start questioning your loyalty and whether I should replace you. Most states are "at will" employment states and do not require a reason for your dismissal. Your employer will find out because of the small size of the community and the first thing he is going to ask of you is were you aware that your coworker was moonlighting for competition. Be prepared for your answer. Again I would try to convince your coworker to stop but then you must focus on your job security and the bind your friend has put you in. I can't imagine your employer will accept you saying " it is none of my business he is my friend"

If she is using work equipment from yoru employer and doing this ectra work while yoru empliyer is paying her...yes. She deserves to be fired.