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No, they have to pay your full salary for the whole time. So to enforce a 18 month non-compete agreement they have to compensate you with 18 months of salary.
by Seb-C 6y ago
No, they have to pay your full salary for the whole time. So to enforce a 18 month non-compete agreement they have to compensate you with 18 months of salary.
- paulgb 6y agoIt's worth noting that this is usually a significant pay cut from the usual total comp, since annual bonuses in some areas of finance tend to be >50% of total comp.
- ghaff 6y agoGardening leave payments are better than nothing if only because they force a company to put some skin in the game if they actually care about enforcing the contract. But, in many cases (I believe the newish Massachusetts law for example) it's not 100% and, as you say, even if it is 100%, it's often exclusive of bonuses, even when bonuses are pretty much a normal expected part of comp and RSUs. Plus it's maybe an 18 month pause on someone's career. Sure, for some people, 18 months off at half pay or so might seem like a pretty sweet deal. It certainly isn't for everyone.