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First-person-view videos of hands interacting with tools are widely used in the computer vision industry. However, creating a dataset with pixel-wise segmentation of hands is challenging since most videos are captured with fingertips occluded by the hand dorsum and grasped tools. Current methods often rely on manually segmenting hands to create annotations, which is inefficient and costly. To relieve this challenge, we create a method that utilizes thermal information of hands for efficient pixel-wise hand segmentation to create a multi-modal activity video dataset. Our method is not affected by fingertip and joint occlusions and does not require hand pose ground truth. We show our method to be 24 times faster than the traditional polygon labeling method while maintaining high quality. With the segmentation method, we propose a multi-modal hand activity video dataset with 790 sequences and 401,765 frames of "hands using tools" videos captured by thermal and RGB-D cameras with hand segmentation data. We analyze multiple models for hand segmentation performance and benchmark four segmentation networks. We show that our multi-modal dataset with fusing Long-Wave InfraRed (LWIR) and RGB-D frames achieves 5% better hand IoU performance than using RGB frames.