1. Continue working for my employer and just don't tell them I'm doing work on the side.
2. Same as 1, but tell my employer that I'm doing this.
3. Ask my employer if I can become an hourly contractor instead of a full-time employee, freeing me up from being on their schedule all day and enabling me to take more clients.
What do you think is the best move? I should add that my employer is okay if we have flexible schedules. I just don't know if they're okay with second jobs being the reason for it.
Odds are they would never know or care even if it's against policy.