Elected official's job status is defined by statute. Money is irrelevant.
This is often a matter of serious debate. For example, in New York legislators are considered part time, so they are permitted to operate businesses or be employed while in office. This creates an appearance (at a minimum) of conflict of interest in many scenarios. Full time employees of government generally need permission by the appointing authority to do meaningful outside business.
This applies to any government employee. A janitor on government payroll generally needs permission to work for a company that cleans offices at night.
This is often a matter of serious debate. For example, in New York legislators are considered part time, so they are permitted to operate businesses or be employed while in office. This creates an appearance (at a minimum) of conflict of interest in many scenarios. Full time employees of government generally need permission by the appointing authority to do meaningful outside business.
This applies to any government employee. A janitor on government payroll generally needs permission to work for a company that cleans offices at night.