California Labor Code 2870: Do You Own Your Inventions? (2026)

Quick Answer: California Labor Code Section 2870 protects your right to inventions you create on your own time using your own resources that don't relate to your employer's business. Even if you signed an invention assignment agreement, your employer cannot claim ownership of qualifying personal inventions.

Your Right to Your Own Inventions

The Basic Rule

California law carves out protection for employee inventions. Under Labor Code § 2870, your employer cannot claim inventions that meet ALL of these criteria:

1. Developed entirely on your own time
2. Without using employer equipment, supplies, facilities, or trade secrets
3. Does not relate to employer's current or anticipated business
4. Does not result from work you performed for employer

Why This Matters

Many employers require employees to sign broad invention assignment agreements claiming everything you create. California law limits these agreements to protect your personal innovations.

What Employers Can Claim

Employer-Owned Inventions

Your employer owns inventions that:

• Are developed during work hours
• Use company equipment or resources
• Relate to your employer's business
• Result from your job duties
• Use employer trade secrets

Examples

Employer owns:

• Software feature you developed for your employer's product
• Process improvement you created during work
• Invention using company lab equipment
• Solution to a problem your employer assigned you

You own (under § 2870):

• App you built at home, unrelated to work
• Personal project using your own computer
• Invention in a field your employer doesn't operate in
• Side business completely separate from your job

Understanding Invention Assignment Agreements

What They Typically Say

Most tech and creative employers require invention assignment agreements with language like:

"Employee assigns to Company all inventions, discoveries, and improvements conceived or developed during employment..."

California's Required Notice

If your employer requires an invention assignment agreement, they must include a notice of Labor Code § 2870. The statute requires this disclosure.

Required language:

The agreement must notify you that it does not apply to inventions that qualify under § 2870 (own time, own resources, unrelated to employer's business).

If Notice Is Missing

If your employer's agreement doesn't include the required notice:

• The agreement may still be valid
• But courts interpret it narrowly
• Missing notice supports your position in disputes

What "Own Time" Means

Clear Cases

Own time:

• Weekends and evenings at home
• Vacation time
• Before or after work hours
• Time you're not being paid

Not own time:

• During work hours
• Paid breaks used for inventing
• Work-from-home during scheduled hours
• Time you're on-call or available

Gray Areas

If you work on something during lunch at your desk using your own laptop, is it "own time"? Courts look at:

• Were you on the clock?
• Were you required to be available?
• Did you use employer resources?

Best practice: Do personal projects completely off-site on personal time.

What "Own Resources" Means

Employer Resources Include

• Company computers and devices
• Company software and tools
• Office space and facilities
• Lab equipment and materials
• Company internet and servers
• Trade secret information

Your Resources Include

• Personal computer you purchased
• Software you bought or licensed
• Your home office
• Publicly available information
• General skills and knowledge

The Trade Secret Exception

Even if you use your own time and equipment, your employer may claim inventions that use their trade secret information. Confidential business information you learned at work may taint personal projects.

The "Relates To" Test

What "Relates to Employer's Business" Means

Your employer's business includes:

• Current products and services
• Reasonably anticipated business directions
• Areas employer is actively developing
• Fields covered by employer's business model

What Doesn't Relate

If your employer makes accounting software and you invent a new fishing lure, that doesn't relate to their business.

Anticipated Business

This is tricky. If your employer is planning to enter a new market, inventions in that space may "relate to" anticipated business—even if they're not in that market yet.

Protect yourself: Document your employer's actual business scope when you join.

Protecting Your Inventions

Before You Start Working

1. Read the invention assignment carefully
2. Verify § 2870 notice is included
3. Document your prior inventions - Most agreements have a schedule for pre-existing work
4. List everything you've already created
5. Negotiate if agreement is overbroad

During Employment

1. Keep personal and work separate - Different devices, different times
2. Document your personal projects - Timestamps, witnesses, records
3. Don't use employer resources - Even if convenient
4. Don't work on personal projects at work - Ever
5. Consider provisional patents - Establishes date of invention

When Leaving

1. Review what you created - Categorize work vs. personal
2. Don't take work inventions - Even if you contributed significantly
3. Retain records of personal inventions - Prove independent creation
4. Be honest in exit interview - Don't hide personal projects

Disputes Over Invention Ownership

How Courts Decide

When ownership is disputed, courts examine:

• When and where was the invention developed?
• What resources were used?
• Does it relate to employer's business?
• What does the employment agreement say?
• Did employer contribute knowledge or resources?

Burden of Proof

Generally:

• Employee must show invention qualifies under § 2870
• Then employer must prove exception applies
• Records and documentation are crucial

Evidence That Helps Employees

• Personal computer purchase receipts
• Work done during vacation or weekends
• Invention unrelated to employer's industry
• Prior art or ideas from before employment
• Complete development history on personal time

Special Situations

Academic Researchers

Universities often have specific IP policies:

• May claim inventions from grant-funded work
• Often share licensing revenue with inventors
• Different rules than corporate employment

Government Employees

Public sector invention rights may differ:

• Federal employees have specific statutes
• State employees follow different rules
• Check applicable regulations

Consultants and Contractors

If you're an independent contractor:

• IP assignment depends on contract terms
• Different rules than employees
• May have more flexibility to negotiate

FAQs

Can I work on a startup while employed?

Possibly, if it's truly on your own time and resources and doesn't relate to your employer's business. But be very careful—conflicts of interest and moonlighting policies may apply.

What if my employer asks about personal projects?

You can keep personal projects private if they're protected under § 2870. But don't lie if asked directly—misrepresentation can cause problems.

Can my employer take my social media accounts?

Generally no, if they're personal accounts created on your own time. But work-related accounts or those you managed for the company may be employer property.

What if I developed something on my own time but it's related to my job?

This may belong to your employer if it "relates to" their business, even though you used your own time and resources. The "relates to" test is the critical factor.

Should I tell my employer about personal inventions?

Not unless required by your agreement or if you want their resources to develop it. Keep qualifying personal inventions separate.

Related Topics

• Employment Contracts Hub
• Trade Secret Agreements
• Confidentiality Agreements
• Non-Compete Agreements

Legal Disclaimer

This article provides general information about California invention assignment law and is not legal advice. Invention ownership disputes are highly fact-specific. For advice about your specific situation, consult a licensed California employment attorney or intellectual property attorney.

Legal Authority:

• Labor Code § 2870 - Employee invention rights
• Labor Code § 2871 - Required notice in agreements
• Labor Code § 2872 - Limitation on employer claims