https://content.next.westlaw.com/practical-law/document/Ia9b1b17e162e11e798dc8b09b4f043e0/Garden-Leave-Provisions-in-Employment-Agreements?viewType=FullText&transitionType=Default&contextData=(sc.Default) This Note discusses the implementation of garden leave provisions in employment agreements as an alternative or complement to traditional non-compete agreements. It addresses the distinctions between garden leave and non-compete provisions, the advantages and disadvantages of garden leave, and considerations for drafting effective garden leave clauses. The Note covers the judicial treatment of garden leave provisions, statutory requirements, and the impact of recent legislation. Garden leave provisions keep employees on payroll without active duties, preventing them from joining competitors. The Note highlights cases like Bear Stearns & Co., Inc. v. McCarron and Bear Stearns & Co., Inc. v. Sharon, illustrating varying judicial perspectives on enforceability. Additionally, it touches on the complexities of compensation, benefits, and legal compliance, including Section 409A and Consolidated Omnibus Budget Reconciliation Act (COBRA) considerations. This Note is essential for employers seeking to protect business interests while navigating the evolving legal landscape surrounding employee non-compete restrictions. .
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