[johnny99]

I presume you're referring to Smule suing Shred, which I think has gotten so much attention (deservedly) because it's so rare. Off the top of my head I can't think of another such example, but I can think of scores of side projects turned into companies, including my own, without employer interference.

You should take precautions of course--read inventions agreements very carefully--but I wouldn't at all go so far as to only do contracting. Especially if you live in California, as others have noted. Half the companies in SV were started by people working at Google or Facebook.

[pauldix]

You're right, there are plenty of examples where that didn't happen. However, I've seen enough examples where it has. Enough that I think it's a bad idea to do side projects while you have full time employment. Unless those projects are strictly volunteer efforts for which you have no intention of turning into a commercial business.