[fsloth]

You don't go to the lawyer to sue your employer. You go there to understand your legal position. This gives you leverage in negotiations.

The way you use that leverage is then explain why you feel something is not fair. In a professional context, you can explain your position in legal terms when you take a compassionate, kind stance, smile and analytically explain the situation from both sides.

It's no more different than handling a code review.

Now, two things can happen: Either your employer is amazed that you both created a new product AND can navigate business negotiations. This is good for your career (unless your employer is an idiot).

Note that creating a new product that people love increases your market worth tremendously (unless you are already at a fairly well compensated level).

Traditionally the simplest way to compensate employees has been to give them a raise. Hint - you could ask this :)

The funny thing a higher pay grade does is that suddenly management will respect you more (we pay him x dollars so he must be awesome).

Or, the second case: you find out your employers 'mr. Niceguy' culture is actually a charade to fool people working at below market rates. At which point the fate of your sideproject totally depends on the legal feedback you received. And it would be better for you to find a better employer.

There are really good books on negotiation and influence. I suggest you read them when you have the time. Examples: Cialdini, 'Influence'. Voss, 'Never split the difference'.

[prox]

I wholeheartedly agree with your comment. The core is that OP created something of value, in his own time. So there should be a value exchange of some sort.

[lukevdp]

Depends entirely on the employment agreement. Many will automatically assign ownership of any code written to the employer.

[Sanzig]

Which, depending on case law in a particular jurisdiction, may or may not actually be enforceable. This is exactly why you would want to talk to a lawyer: they can tell you if you have a leg to stand on.

The employer might be under the impression that all the terms in the employment contract they pulled off FreeLegalTemplates.net are enforceable when they aren't. Going to a lawyer first gives you the ammunition to politely point out that you are in fact the one in the right here.

[Aeolun]

Which is insane, and should be illegal in a variety of different ways.

[prox]

Well true, depends on circumstances and how OP and employer relate and if they can find a win-win for both. See it as an opportunity.

[ianai]

Unless he’s a salary employee. In that case, he’s technically always on the clock or could be argued to be so. If you want your time to yourself then stay an hourly employee.

[castwide]

IANAL, but it's definitely not that simple. I've worked in salaried positions and still retained ownership of my side projects. There was also one instance where I refused to sign a NCA that threatened my IP, so YMMV.

[wnkrshm]

A salaried position is usually for X hours per month though. An employer that can make you work 24/7 each day of the month is not an employer, they're an owner.

[charlesdm]

This is excellent advice