If you start a tech based side business/startup while employed at FAANG, what are the legal consequences ? Can you actually do it ? Does your FAANG employer have a high probability of claiming ownership of the startup (Pied Piper style!) ? #faang #startup #google #microsoft #facebook #netflix
You will need to disclose it to cover your bases. If not disclosed, then yes it can get messy.
Eh, it’s not advisable (but is doable) for some of the complications mentioned above. There are plenty of factors: - What does your employment agreement say, - What’s the nature of your new business, - What’s the nature of your work and relationship with your employer, - Can you do it through an LLC, an offshore LLC merely operating in the US? - Other owners? - Did you use any of your work tools or information specific and unique to the company you work for in coming up with your your idea? It’s not “wildly illegal” but you should absolutely work with counsel to make sure you don’t blow yourself up. Don’t let lawyers bully you, your employer generally has no speciality to enjoin you from free enterprise.
As long as you do not use company time or resources in any way it is fully legal. That being said you will break the majority of company policies meaning that they can fire you with cause at any point if it is not approved(and I dont see any company approving it). Finally, if your company is successful you will always have the risk the you get sued and are forced to ‘prove’ you did not leverage their resources this can get dicey. Also many companies have clauses that say your ‘inventions’ are theirs and you sign this paper when you start. For sure do not file for patents or the like while still employed. The smart move is get your company kicked off and test your idea, the majority of them will fall on their face. If you get traction/revenue then you quit before you have built much in real ‘worth’. This really minimizes what they can come after you for to the point it isnt worth the leg work.
The process and necessary approvals are spelled out in the employee handbook. As for claiming ownership, they can’t claim ownership of the entity, but they can claim ownership of any IP stolen Or developed with company resources. More likely what will happen is that investors won’t touch you, due to the legal uncertainty. If you are serious about starting a company. Consult your lawyer and do it the right way.
Pshh... people trade via Robinhood while taking shits at work all the time. In this market, anyone with around few hundred thousand in the market can easily rack up thousands in weekly gains. How is this okay but spending time outside of working hour starting a side business is not. What about my rental properties I actively manage. That’s also a no no? Ridiculous.
I dont think either of those are the same thing.....you could argue they are investments not businesses. It's not a matter of spending time on something else. The issue is using company resources or company technology. If OP started a lemonade stand on weekends employer wouldn't care
It's wildly illegal to do this
So even if I am not using any confidential/overlapping job related information from my employer ? Does being a YouTuber(monetized) also come under this ?
Wildly illegal? My reading of the Moonlighting Policy is that as long as you go through proper channels this is possible?