Has anyone dealt with something like this? I'm not sure what my options are.
employer claiming my side project IP. I've been dealing with this for about 3 weeks now and the situation isn't improving.
This involves software/code I developed over the past 22 months. I do have documentation proving my ownership and timeline.
What are the risks if I pursue this? What's the likely timeline?
I built a SaaS product as a side project on nights and weekends using my own equipment. It's in a completely different market than my employer. They found out and are now claiming they own it under my employment agreement's IP assignment clause.
The clause says I assign all IP "related to or useful in the business of the Company, whether or not conceived during working hours." My side project is a cooking recipe app. I work for a fintech company. How is a recipe app "useful in the business" of a fintech company?
Your strongest argument is the "related to or useful in" language — a cooking recipe app has no connection to fintech. However, employers sometimes argue broadly:
These are generally losing arguments, but the strength of your position depends on your state:
California (Labor Code § 2870): Explicitly protects employee inventions developed entirely on personal time, with personal resources, that don't relate to the employer's business. Your recipe app would be protected.
Other states: 8 states have similar statutes (DE, IL, MN, NC, WA, KS, UT, MT). In states without such laws, the contract language controls more heavily.
Regardless: did you use ANY company resources? Company laptop, company email, company cloud accounts, any work time? If yes, that weakens your position. If you can demonstrate complete separation (personal devices, personal time, unrelated field), you're in a strong position.