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BLUF: before you freelance on the side, read your employment agreement. Here's how I got my side gig squared away at a defense contractor

JoJo Ramos@jojo_navyvet

October 6, 2026 · 2 min read

BLUF: I now build and maintain a booking site for a local gym on nights and weekends, legally, with my employer's written OK. It took three weeks of paperwork. Here's the checklist, because a lot of you career changers are about to do the same thing and some of you will skip step 1.

1. Read your employment agreement. All of it.

Look for three things: an "outside employment" or "conflict of interest" clause, an IP assignment clause, and anything about company equipment. Mine had all three.

2. The IP clause is the scary one

Many agreements say the company owns inventions you create "during your employment". Read the exact wording. In California, Labor Code section 2870 limits that: an employer generally can't claim something you built entirely on your own time, with your own equipment, that doesn't relate to the employer's business or come out of your work for them. Some other states have similar laws, some don't. A gym booking site has nothing to do with defense software. That matters.

3. Ask in writing

I sent HR a one-page request: who the client is (a local gym, no government work), what I'm building, hours (evenings and weekends, under 10 a week), and confirmation that I use my own laptop, my own accounts, and no company time. Approved in writing after two weeks. Keep that email forever.

4. If you hold a clearance, talk to your security officer

Cleared folks have reporting requirements. I'm not going to list them here, and they depend on your situation, so walk into your security office and ask before you sign a client. Ten minutes of awkward conversation beats a very bad day later.

5. Separate everything

  • Own laptop. Never the work laptop, not even "just to check the client's email"
  • Own GitHub account, own email, own password manager vault
  • Never on work hours. My time log for the gym starts at 6pm or later, and I keep the log

6. The money

$60 an hour, about 8 hours a week. I set up a single-member LLC, mostly to keep the paperwork clean. Set aside around 30% for taxes from day one. Side income has no withholding, and April will remind you.

Twenty years in the Navy taught me that paperwork done early is boring, and paperwork done late is an investigation. Get squared away first, then code.

Never too old.

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Kuya Migs@kuya_migs_codes2 rep in Freelance Files
Salamat pare, this is the checklist I needed for my viewers in the US 🙏 never too old 🔥
3 net votes
JoJo Ramos@jojo_navyvet#5 in Freelance Files
Salamat, Migs. Share away. Half the questions I get are exactly this
3 net votes
Vikram Iyer@vikram_on_h1b2 rep in Freelance Files
Important footnote for the visa folks reading: on an H-1B you generally cannot do this at all. Work for a second employer or client needs its own authorization, and "just a small gig" can put your status at risk. Talk to an immigration lawyer before you even quote a price.
3 net votes
JoJo Ramos@jojo_navyvet#5 in Freelance Files
Roger that, Vikram, and thank you. Big one I didn't think to include. Adding it as step zero for anyone on a visa
0 net votes
Vikram Iyer@vikram_on_h1b2 rep in Freelance Files
Appreciate it. We disagree on plenty, but this one we can agree on 🙂
0 net votes
Gary Pritchard@contractor_gaz2 rep in Freelance Files
UK version: check your contract for an exclusivity clause, and HMRC still wants their cut of the side money. 30% set aside is about right mate, crack on
7 net votes
Ray Alvarez@ruck_n_code1 rep in Freelance Files
Copy that, Chief. ETS is in the spring and I was planning to freelance during SkillBridge. Going to read my paperwork twice now
2 net votes
JoJo Ramos@jojo_navyvet#5 in Freelance Files
Good to go, Ray. During SkillBridge you're still on active duty, so ask your chain about outside work before anything else. DM me if you want a second pair of eyes
3 net votes
Andre Mitchell@andre_3131 rep in Freelance Files
Fam, step 5 is real. A friend built a side project on his work laptop and the company claimed it. Lowkey the scariest story I know
3 net votes
Jo Brennan@jo_ships3 rep in Freelance Files
"set aside 30% for taxes from day one" is the line everyone learns in april. every single year
3 net votes
Jen Hayes@night_owl_jen1 rep in Freelance Files
saving this for when I finally get the remote job and then the side gig lol ☕ thank you JoJo
3 net votes