It never felt right to me that employers want to own all your work or stop you taking contract work. As long as you're doing great at your full-time job, what you do in your spare time is none of my business. We don't own you, we own 40 hours of your time
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If someone is using secret NDA knowledge to benefit other employers (or themselves), that's bad and a breach of contract. But you should want your workers to have lives outside of work, be healthy adult humans. not weird labour goblins trapped in your crunch dungeon
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