![]() ![]() Some non-compete agreements have express clauses allowing an employer to do just this – to shorten the non-compete and thereby avoid contractual non-compete payments - but the Court’s opinion makes mention of no such a clause here.Īccording to the Court, the employer attempted to justify the non-payment on several grounds.įirst, the employer argued that because the non-compete itself was to the employer’s benefit, it was free to waive the non-compete period and not make the accompanying $1 million payment. Yet here, the employer apparently had second thoughts – and just over a week after the employee resigned, the employer notified the employee that it was waiving the six month non-compete, allowing him to work anywhere, and therefore not paying him any portion of the promised $1 million. Accordingly, it is doubtful that most judges would have had an issue with it. It was a win-win situation that seemingly would be blessed by most courts it was for a reasonable length of time, and the employee was set to be paid very handsomely for sitting out. ![]() This was, in effect, a form of paid “garden leave” - where the employee was to be paid $1 million to sit out for six months – perhaps to finally correct his golf slice or even learn the fine art of surfing. Getco, LLC, the Illinois Court of Appeals was recently faced with an interesting situation: under a contractual non-compete agreement, the employer was obligated to pay the employee $1 million during a six month, post-employment non-competition period. ![]()
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