Companies might not be able to stop a worker from quitting to work for a rival. But more firms might consider making their soon-to-be former employees pay for the privilege.
Clawback provisions—clauses in employment contracts forcing an employee to return compensation to their employer—are getting renewed interest in compensation circles. The federal government likely will move to ban noncompete employment clauses later this year. For certain companies and roles, clawbacks could make a lot of sense. “They’re a lot more enforceable than many other alternatives,” says Anu Gupta, Korn Ferry senior client partner specializing in organization design.
