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My understanding is that this arrangement is common in finance. However the worker is not given benefits or bonuses during this time. Since private health insur

• sebzim4500 4y ago
  >it can still be onerous Sure you get paid less than you are used to but you are still getting more than 95% of the population to do literally nothing.
  • ericbarrett 4y ago
    In some cases the total comp is less than 50% salary. Might be fine for some quant PhD to go from $1M to $250k, but if this "workaround" to enforcing non-competes becomes more popular and spreads to different fields you could see positions that go from (say) $80k + benefits to $40k without, with furlough enforced for a year. That would be devastating for a family with children.
    • ipaddr 4y ago
      But the people you are concerned with are not paid 40k plus 40k bonus that can be clawed away they are paid 80k. Bonuses are like options being worthwhile in that they are mostly out of your control. When I see a position pays 140,000 plus bonus which was almost 40,000 last year I know I can only count on 140,000 this year and if 40,000 happens to be awarded great.
    • jacobr1 4y ago
      This wouldn't be a widespread practice outside of fields with proprietary data, relationships, or trade secrets, which tend to have better compensation. The costs of having a non-working employee on the payroll, even at the $40k-level need to be worth it. It isn't going to be the case for a random grocery store manager or whatever that they are worth the costs.
  • mcv 4y ago
    Sounds to me like a great time to start working on your own project. Maybe even start your own company.