Also think for a minute about what "you should be ok" means in this context. Sure, if you are developing something in your spare time that kinda-mostly-doesn't-compete with what your employer is doing, and they find out, maybe they can't legally go after you.
But that doesn't mean that they're obligated to keep sending you a paycheck, either. California is an at-will employment state, and violating your employment contract tends to remove the "will" to employ you.
But that doesn't mean that they're obligated to keep sending you a paycheck, either. California is an at-will employment state, and violating your employment contract tends to remove the "will" to employ you.