I disagree. The law can only mandate salaries during noncompete periods. It cannot mandate bonuses or stock grants, both of which can be significant.
And as an employee, I prefer that noncompete has no effect. Even if I were paid during noncompete period, I would be outcompeted by other people who are working rather than being idle. It would set my career back.
I could imagine it poses some risk of gaming the system (ie, have your friends startup fake hire you at 2/5x and use that to bypass noncompete or get a huge raise) - but then the company's out is to not enforce their noncompete (which is essentially what CA enforces) so I think it's a nice "velvet handcuffs" option for employers.
My fear around banning is that if an employer were willing to buy you out but non competes are banned the only real option they have would be to not hire you, no?
> The rule should be that they can make you not compete, but you must be compensated monthly at your salary level prior to departure.
> A non compete without having to pay is having your cake and eating it to so to speak.
Agreed. Noncompetes and NDAs have become standard boilerplate in job contracts despite being inappropriate in the vast majority of cases. In my opinion, it's an intimidation used by employers against employees: "we don't actually enforce this, unless you do things like leave us a negative review on GlassDoor".
Despite being unenforceable where I live, I know several people who have been threatened by their ex-employers. Even if such legal action is frivolous, most people don't have the time or money to spare fight it off, and employers know this. This relates back to the bargening inequality mentioned in another thread.
Be careful what you wish for, there are significant non-salary benefits (stock ESPP and RSUs, healthcare subsidy, etc.) that matter a lot. These employers would just restructure compensation to effectively recreate low-cost non-competes.
The rule should be that they can make you not compete, but you must be compensated monthly at your salary level prior to departure.
A non compete without having to pay is having your cake and eating it to so to speak.