Background <p>This study investigates the impact of customer incivility on employee burnout and work-family conflict, examining the moderating role of ethical leadership in these relationships within the service industry. By integrating the Conservation of Resources theory and Role Theory, we seek to provide a more comprehensive understanding of how negative customer interactions affect employee well-being beyond the immediate work setting.</p> Methods <p>We conducted a two-wave, time-lagged survey among 586 full-time service sector employees in South Korea. The data were analyzed using confirmatory factor analysis and hierarchical regression to test the hypothesized relationships between customer incivility, burnout, work-family conflict, and ethical leadership.</p> Results <p>Our results reveal a positive relationship between customer incivility and work-family conflict, which is mediated by burnout. Furthermore, we found that ethical leadership moderates the relationship between customer incivility and burnout, such that the positive relationship is weaker when ethical leadership is high.</p> Conclusion <p>By integrating Conservation of Resources theory and Role Theory, this study provides a comprehensive understanding of how negative customer interactions affect employee well-being beyond the immediate work setting. The results highlight the spillover effects of customer incivility on employees’ personal lives and the importance of ethical leadership in mitigating these effects. This research offers valuable insights for developing targeted interventions to enhance employee well-being, work-family balance, and organizational effectiveness in service industries.</p>