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Bans are a big hammer and have unintended consequences in areas not given adequate consideration. Requiring payment for the duration of the non-compete is perf
by jeffdavis 8y ago
Bans are a big hammer and have unintended consequences in areas not given adequate consideration.
Requiring payment for the duration of the non-compete is perfect. You can tweak the specific requirements up/down as problems arise.
In most practical situations, requiring payment (of almost any amount) will eliminate non-competes, because employers generally don't like paying for labor they can't use.
- vkou 8y agoRequiring employers to pay for non-competes will be functionally equivalent to a ban. Nobody in their right mind will pay tens of thousands of dollars to enforce one.
- thedufer 8y agoNot true. This is called "garden leave" in the financial industry and is quite common. I believe the theory is that a lot of a trader's knowledge becomes obselete quite quickly, and it is cheaper to pay a former employee for a year or two then to let them use their strategies at a competitor.
- omeze 8y ago(I disagree with the downvotes here - this is a reasonable position if you have no context) In practice, non-competes that pay out 200k+/yr are quite common in finance (think firms like 2 sigma, Jane Street). They will pay to keep people from going to competitors, mainly to keep their strategies and implementation details reasonably protected.
- cco 8y agoThen it sounds like it wasn't worthwhile to begin with if the only risk was tens of thousands of dollars.
- ummonk 8y agoBans against non-competes in California work just fine and have contributed to creating a more dynamic innovative economy.
- crdoconnor 8y ago>have unintended consequences What negative unintended consequences?