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How is that legal?

In other words, your side project is just more, unpaid work?

It's worse than unpaid work, it's taking ownership of your personal hobbies. Presumably your side projects aren't for your work but for yourself. Imagine if a chef had to pay his employer for the meals he makes at home. Makes no sense.

More reasonable would be an industry non-compete or technology NDA which are more specifically about you not taking company secrets and making money from the company's efforts.

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