Earlier quoted context omitted.
Option B is explicitly prohibited in your employment agreement for most salary workers. I would never consider working for a company that required me to violate a contract just for a chance to work there.
In my experience this hasn't been the case. The closest I've come was an employment contract that required me to notify my employer of any work on the side. This has happened only once over more than a decade of work in this industry.
Here's the part that's relevant to the discussion:
> While you render services to the Company, you will not engage in any other gainful employment, business or activity without the written consent of the Company. While you render services to the Company, you also will not assist any person or organization in competing with the Company, in preparing to compete with the Company or in hiring any employees of the Company.
I'm sure we can have both charitable and strict interpretations of "while you render services to the Company" but only a lawyer can probably tell what that means. Did you not have such a clause?