Startups Stack Exchange Archive

Do companies have intellectual property rights to what their employees do outside of work?

Heard a story of a guy in interview where someone from HR was telling him that the company doesn’t allow developers to have side projects. Is this true for companies in general, or just a minority of companies doing this?

Further, putting aside if it’s common, is this sort of restriction legally enforceable, and if so, what are examples of final orders supporting this?

(If a general answer is not possible, please limit the answer to the US or California, for what it’s worth.)

Answer 5267

In the technology industry, this is largely true. As a software tester, there’s been a clause that restricts side-projects in every single contract I’ve ever signed… both as permanent employee and contractor! Though what’s interesting about the contractor contracts (or at least here in the UK), is that they don’t restrict you from obtaining paid work from other companies provided it doesn’t interfere with your 9 - 5pm job with them.

For non-tech jobs (like when I worked in a restaurant), I don’t remember this being mentioned.

Technically, this sort of restriction is legally enforceable - it’s in your contract. Having said that, I’ve never seen it be enforced, where the company you work for actually owns your work. There have been a few guys at my current employer who have left to chase their sideline projects and work on them full-time.

… just don’t do work on them during work time!


All content is licensed under CC BY-SA 3.0.