You just finished a hard day’s work at the office.

After commuting home and eating a quick dinner, nothing sounds better than some quality binge watching on Netflix. But you resist the urge, open up your laptop, and get to work on that side job.

Sound familiar?

For a lot of new startups, this is a typical weekday. Welcome to the world of moonlighting.

Moonlighting, or working multiple jobs, has become more and more common these days. People moonlight for lots of reasons: to supplement income, to gain skills, or to start a new business.

So why’s moonlighting important?

These days, many successful companies (like Instagram) owe their existence to moonlighting. But moonlighting is hard work, and it can be risky. Intellectual property (IP) …show more content…
Moonlighting brings up major IP concerns. So what is IP?

IP essentially covers everything that your startup creates. When most people hear IP, they think patents and inventions. This is true, but IP also covers smaller things like a company logo you designed or a special procedure you developed to work through a problem. For example, if you’re a tech startup, developer code is definitely IP.

All of this matters because moonlighting can have awful consequences. It can cost you your job if an unapproving boss finds out. Plus, investors are reluctant to get involved in a startup if they sense any IP concerns.

Perhaps worst of all, if you create things for your startup on your employer’s time or equipment, you risk losing your rights to that IP. Something as small as using a work computer to test an algorithm for your startup could wind you up in a situation like this:

That’s right, if you create IP while working at your day job, your old boss might own that IP. What if you use part of your employer’s IP to help create your own stuff? Same result: your boss might own it, and he could have other claims against you for improperly using “his” …show more content…
Be on the lookout for policies referencing “outside activities” or “outside employment.” Pay particular attention to these documents:

offer letters and employment agreements confidentiality agreements intellectual property assignment agreements non-compete or non-solicitation agreements stock option agreements non-disclosure agreements employee handbooks
When you look through these documents, note any terms suggesting that IP is shared with or owned by the employer. Are there any outright bans on working a second job or starting your own business? Does your employer require you to tell them about your side hustle? Be sure to get a good handle on this paperwork.

Step 3: Moonlight Properly.

One of the first decisions you will have to make is whether to be upfront with your boss about your new startup. If there is a policy or contract that requires you to disclose your side gig, then there’s your answer. Otherwise, use your best judgment given the situation.

Next, set clear boundaries to keep your startup activities separate from your full-time job. Keep in mind the following:

Never work on your startup during work hours or at your work