Is moonlighting as a CS coach legal in CA?

#1

Post by yetanotherdood » Mon, Feb 05, 2024, 2:38 AM UTC

I work full-time as a senior engineer at a company in the bay area and wonder whether I could start a side-hustle as a computer science / system design coach on the side. I would charge a nominal fee for my time but I've never actually done a business outside of my regular employment.

Has anyone tried this? Do you usually need to let your employer know and could there be blowback?

Re: Is moonlighting as a CS coach legal in CA?

#2

Post by Bostonian » Mon, Feb 05, 2024, 2:42 AM UTC

Our company employee handbook prohibits "outside engagements" without prior approval. Does your company handbook say anything about this?

Re: Is moonlighting as a CS coach legal in CA?

#3

Post by yetanotherdood » Mon, Feb 05, 2024, 2:44 AM UTC

Bostonian wrote: post #2

Our company employee handbook prohibits "outside engagements" without prior approval. Does your company handbook say anything about this?

I'm not sure what my employment contract states but I wonder if California Labor Code section 96 overrides things even if the contract says something like "explicit approval must be granted before you start business in X"

Re: Is moonlighting as a CS coach legal in CA?

#4

Post by troymc » Mon, Feb 05, 2024, 3:01 AM UTC

I'm not a lawyer, so take this with a grain of salt. This is not formal legal advice etc. etc.

You should re-read your employment contract, and any other official company terms and conditions of employment. Some employers do say that you can't have a side hustle, or maybe they just prohibit certain kinds of side hustle. Others say that you just need to inform them if you have one. Others say nothing about side hustles.

You'll probably want to create an LLC for your side hustle. If you get a lawyer to help you set up the LLC, then it wouldn't hurt to ask them about any laws you should be aware of. The cost of a real lawyer's advice could save you a lot of money and trouble in the long run.

Re: Is moonlighting as a CS coach legal in CA?

#5

Post by troymc » Mon, Feb 05, 2024, 3:03 AM UTC

yetanotherdood wrote: post #3

Bostonian wrote: post #2

Our company employee handbook prohibits "outside engagements" without prior approval. Does your company handbook say anything about this?

I'm not sure what my employment contract states but I wonder if California Labor Code section 96 overrides things even if the contract says something like "explicit approval must be granted before you start business in X"

You must have signed an employment contract when you accepted your job offer, and you should have been given a copy. If not, just ask for a copy. You don't need to say why.

Re: Is moonlighting as a CS coach legal in CA?

#6

Post by yetanotherdood » Mon, Feb 05, 2024, 3:32 AM UTC

troymc wrote: post #4

I'm not a lawyer, so take this with a grain of salt. This is not formal legal advice etc. etc. You should re-read your employment contract, and any other official company terms and conditions of employment. Some employers do say that you can't have a side hustle, or maybe they just prohibit certain kinds of side hustle. Others say that you just need to inform them if you have one. Others say nothing about side hustle…

You're right, I'll get my employment contract and get it checked by a lawyer to see what's what. I'm guessing I would need the help of an "employment lawyer" to figure out what my options are.

If I realize I can indeed start a side-hustle then yes I'd get a lawyer's help to start the LLC.

Re: Is moonlighting as a CS coach legal in CA?

#7

Post by hilux » Mon, Feb 05, 2024, 3:47 AM UTC

Unless your employer explicitly forbids outside work (most don't, I think Google does), why wouldn't it be legal?!

In California, incorporating with an LLC costs $800/year and provides little to no benefit. It specifically does not provide much legal cover if you're a one-person corp.

On the other hand, it's easy and free to set up a "sole proprietorship" with the IRS, and register some snazzy name at your county registrar. This is the path I took, and I recommend it. (Nolo Press is a good resource for many basic legal things.)