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: Indiana Civil & Business LawyerGarden Leave: A Live American Example
Want an example? In Bannister v. Bemis Co., Inc., (2009 U.S. App. LEXIS 3648, 8th Cir. Feb. 25, 2009) a Garden-Leave clause was examined by a federal court in Arkansas. Bannister served as director of product development for Bemis. He signed a non-compete agreement which contained an 18-month post-employment restriction against working for a competing business. However, Bannister's contract provided he could receive his base-salary from Bemis if he was "unable to obtain employment consistent with his abilities and education solely because of the non-compete clause." This is called a "Garden-Leave" provision.
Virginia Non-Compete Law Blog goes on to make this suggestion:
This sounds like a good strategy but for one thing: if the position does not pay a salary, there is no base salary to be paid during the garden leave period.My Take: If you bring highly sought after skills to you job and the employer wants you to sign a restrictive non-compete agreement, request a Garden-Leave provision in your employment agreement.
Full post as published by Indiana Civil & Business Lawyer on April 20, 2009 (boomark / email).
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