I know that at most hedge funds or prop trading places, one needs to sign a non-compete agreement. The agreement assigns a certain period of time (6mos-2yrs) during which the employee can't take a new job similar to the previous one (this can be quite broad based on the vague terms in many agreements). So, does this agreement mean that one has to stay in a place forever unless he is willing to stay idle for a certain period of time or until the company lets him go (lay off or fire)? This agreement seems to be able to bring more trouble to foreigners (H1B visa holders), since the visa policy may not allow one to stay in the US without a job (I'm not sure though). I previously thought that the financial job market is a quite liquid place. People can change a job every two years or so if he wants. But now I suspect that this only happens to bank people, since they usually don't sign such an agreement. Can anyone give me a real picture in the hedge fund or trading industry? Thanks!

Years ago some lawyers told some programmers and quants that the non-compete was not really inforceable---this was before hedge funds were popular. However in the last few years the quants and traders I know who left hedge funds have not taken competing jobs. However they had made enough and were given good enough packages that they were willing to abide by the agreement [so as not to lose the package] and possibly they wanted some time off. That does not mean they did not keep networking and figuring out where they would later go or prepare skills/knowledge for later jobs.

jfuqua, Thanks for your information! So, do you mean that the quants and traders you know simply stayed idle until the restriction ended? Did anyone of them attempt to work for a new place immediately after leaving the previous one, and if yes, how's the reaction from the previous company?Another question relevant for foreigners is: if a H1B visa holder has to stay idle to abide by the non-compete agreement after the termination of the previous job but still receives compensation from the employer (as required by the agreement), can s/he lawfully keep his visa status?

QuoteOriginally posted by: movielovejfuqua, Thanks for your information! So, do you mean that the quants and traders you know simply stayed idle until the restriction ended? Did anyone of them attempt to work for a new place immediately after leaving the previous one, and if yes, how's the reaction from the previous company?Another question relevant for foreigners is: if a H1B visa holder has to stay idle to abide by the non-compete agreement after the termination of the previous job but still receives compensation from the employer (as required by the agreement), can s/he lawfully keep his visa status?To answer your first question about jobs being liquid - actually, no it is not common for traders and quants to switch jobs frequently. It is still okay to find 2-3 jobs before you can find what you want. But you need to stick with one place at least around 4-5 years. That is the only way you are going to prove that you are not a job hopper and are serious about commitment. Besides, it does not make much sense to me as to why one would leave a hedge fund, where presumably you are being paid more than the market standards or at par. Having said that, yes, there are many traders an quants who usually stay idle for the time period [as in the agreement]. Many teach, or go back to school or work as freelance consultant [in a different asset class, etc]. Some might just take vacation. Non competing agreement is pretty common in most hedge funds. The only way you can break the same is if your fund falls apart. Otherwise, if you leave the job, then you need to find something in a role different than the previous one. About your h1-b part, you need to check with an immigration lawyer but mostly the answer is negative. I think you have 1 month to find another job after leaving your previous one or else you may have to leave the country or if you are married [and your wife has legal visa status], then you can apply for dependant visa status.

QuoteOriginally posted by: cryptic26About your h1-b part, you need to check with an immigration lawyer but mostly the answer is negative. I think you have 1 month to find another job after leaving your previous one or else you may have to leave the country or if you are married [and your wife has legal visa status], then you can apply for dependant visa status.Thanks, cryptic26. If the H1B issue is really like what you said, the policy is so pro the employer and so against the H1B holders. It seems h1b guys are locked in by the agreement since they can neither work for another job nor can they really enjoy the paid idle period (as without a job they can only stay for 1 month).

h1b is employer specific.someone who has an h1 can always find ways to prolong it. eg, there are "consulting firms" that will for a nominal amount employ you and allow you to remain on the bench for a few months while you look for a contract position and then take 30% or so of your consulting rates as commission after that.someone who does not have an h1 has low probability (less than 40%) of getting one, with a lottery determining who gets it.

QuoteOriginally posted by: ArthurDenth1b is employer specific.someone who has an h1 can always find ways to prolong it. eg, there are "consulting firms" that will for a nominal amount employ you and allow you to remain on the bench for a few months while you look for a contract position and then take 30% or so of your consulting rates as commission after that.someone who does not have an h1 has low probability (less than 40%) of getting one, with a lottery determining who gets it.===================== Apparently the government keeps checking on jobs and status for a long time for H1 or Greencards. I recently had to submit a letter that a summer intern had worked for me probably seven years ago. He was still in school but has been working for the last five years also in the U.S..

QuoteOriginally posted by: movieloveQuoteOriginally posted by: cryptic26About your h1-b part, you need to check with an immigration lawyer but mostly the answer is negative. I think you have 1 month to find another job after leaving your previous one or else you may have to leave the country or if you are married [and your wife has legal visa status], then you can apply for dependant visa status.Thanks, cryptic26. If the H1B issue is really like what you said, the policy is so pro the employer and so against the H1B holders. It seems h1b guys are locked in by the agreement since they can neither work for another job nor can they really enjoy the paid idle period (as without a job they can only stay for 1 month).You can check with your employer and lawyer as to what is the right way for you to accept money and yet not be illegal. It is part of employment contract and so it is illegal for the employer to not pay you after you leave [in the cold period when you cannot compete]. It just turns out that in your case it would be illegal to accept money as you shall be out of visa status. Perhaps, the employer can give you an entire amount at the time you leave instead of a salary? What I am not able to understand is that why would you leave and not have another offer [perhaps in a consulting , etc firm]. However you should talk to an immigration lawyer. No one shall be able to advice you properly.