This is actually a complex issue. Based on my non-lawyerly understanding, there are a few levels...
1 - If your employment contract says that the company owns 100% of your work unless otherwise approved, you have limited legal standing. This means all side projects must be approved, or the company owns it.
2 - Some employment contracts are more specific that they only own what happens during working hours. This can be tough if you work on a project during working hours, and they reject it. You definitely can't take the code with you, but you can keep what's in your head.
3 - If you pitch a side project done on your own time to a company who only owns what's produced during your working hours, then you have a right to take it with you if you offer it to them and they don't want it.
I actually don't consider #1 so awful. As a prospective employee you should negotiate it with a price. Similar to if someone wants a very long non-compete. It's only immorale if they spring it on you after you start. If they hand it to you during salary negotiations, then you can put a price on it, or go elsewhere. ("I'm happy to accept a 1 year non-compete, if you pay me 5% more, and give me 6 months severance if I'm fired for any reason, including with cause.")
I consider #1 to be god awful, and I refuse to sign any contracts with such clause.
It would be similar to saying a book writer who's main job is a typist would have to get his book approved (and potentially denied), or an artist would lose rights to his works he makes during his free time. It's out of this world wrong.
Isn't it just a matter of price though? If I was ready to accept a job for 100K, and someone said, "We'll own your non-working hours IP and pay you 300k" I would probably do it. Then I would work for them for a year, and do my own stuff for two. Companies try to make people sign it for free, but I view it as a negotiable item with a price, rather than a morality issue.
1 - If your employment contract says that the company owns 100% of your work unless otherwise approved, you have limited legal standing. This means all side projects must be approved, or the company owns it.
Note that - depending on the details - state law my trump one of those "We own your brain 100% of the time, 24x7" sort of agreements, even if you did sign it. There are states where the law simply does not permit an employer to enforce such an overly broad claim to an individual's intellectual output.
Now if the work in question was legitimately done on "work time", in the course of a work related initiative, then it seems clear that the IP does belong to the employer in most cases.
The question to me (coming at this as a non lawyer) is where the line is between "the IP" per-se and general knowledge and know-how that you absorb by osmosis over time, and which you clearly should not be restricted from accessing. IOW, if Programmer A learns to use a "for loop" during his first programming job, does that mean he can never use a "for loop" again? Obviously not...
3 - If you pitch a side project done on your own time to a company who only owns what's produced during your working hours, then you have a right to take it with you if you offer it to them and they don't want it.
That certainly seems like the way things should be. :-)
1 - If your employment contract says that the company owns 100% of your work unless otherwise approved, you have limited legal standing. This means all side projects must be approved, or the company owns it.
2 - Some employment contracts are more specific that they only own what happens during working hours. This can be tough if you work on a project during working hours, and they reject it. You definitely can't take the code with you, but you can keep what's in your head.
3 - If you pitch a side project done on your own time to a company who only owns what's produced during your working hours, then you have a right to take it with you if you offer it to them and they don't want it.
I actually don't consider #1 so awful. As a prospective employee you should negotiate it with a price. Similar to if someone wants a very long non-compete. It's only immorale if they spring it on you after you start. If they hand it to you during salary negotiations, then you can put a price on it, or go elsewhere. ("I'm happy to accept a 1 year non-compete, if you pay me 5% more, and give me 6 months severance if I'm fired for any reason, including with cause.")