Starting a startup is a fun and exciting journey that most start while working a full-time job. First of all, it can be legal to start a business or side hustle while working a full-time job. However, you need to carefully read your employer’s contract to see if this is allowed.
The new boom in remote work due to COVID-19 has flipped the legal and ethical question of building your business on an employer’s clock on its head. The lines of work-home and work-life balance have been buried. Traditionally, if you were starting a business while working in an office during company time, then a red flag. However, the beauty of working remotely is you usually get to choose when company time is. Ensuring that you complete the necessary task for your current job there is absolutely no reason why your startup or side hustle would be an issue.
To avoid any future issues, you should read the agreement of your employment contract very carefully. Make sure that you understand your obligation to your employer has violations that can lead to termination and put your startup at risk. There is also the question of Intellectual Property (IP), you do not want your current or former employer suing you over IP for your startup.
IP battles can range around the following stipulations in your employment contract, look out for these:
- A requirement that you get written consent from your employer before getting involved with any outside activity — even on a part-time basis or as a consultant or advisor
- A requirement to protect your employer’s confidential information and trade secrets, and not use it for any outside purposes
- Assignment to your employer of any intellectual property that you develop while employed there
- A prohibition on working on any venture that competes with your employer
I would say not sharing your startup activities with your current manager or HR department at your company. The risk of IP and lawsuits might be an issue. Most founders keep working on their startups while holding down a full-time job. For the tech-savvy founders working as Product Managers or software engineers in a tech company. A rule of thumb is your product and service should not compete directly with your employer as you run the risk of your employer taking action against you.
Be mindful of your social media use as well, do not change your LinkedIn profile to reflect your new business or side hustle while still working at your employer. Jealous colleagues might report you to your manager or your employer might be using tools as well as social media to see if you’re job searching or working two jobs or side hustling.