Direct answer
Non-competes can block SGA weeks: stand-down periods, garden leave, and role delays change what you can report. The records must show the work you can do, not the clause you signed. The weekly certifications report every week (see the certifications guide ), the audit traps in the audit guide , and the mobility rules in the mobility guide . The public records trail is in the records guide .
Updated November 9, 2026 · Reviewed against US FTC — competition policy
Non-competes can block SGA weeks: stand-down periods, garden leave, and role delays change what you can report. The records must show the work you can do, not the clause you signed.
The SGA Lanes
- Garden leave: paid notice weeks keep income lines and access; the separation language is in the structure guide and the settlement lines in the settlement guide.
- Stand-down pay: a paid non-compete window reads as wages for SGA and unemployment; label the weeks precisely (see the SGA guide).
- Restricted roles: the clause defines your work lane; scope, geography, and duration decide the claim lines (see the enforcement guide).
The weekly certifications report every week (see the certifications guide), the audit traps in the audit guide, and the mobility rules in the mobility guide. The public records trail is in the records guide.
Put the rule into action
Write the letter with the free Non-Compete Disclosure Letter generator. The state pages carry the local payout and notice windows, and the application tracker keeps the follow-up date in writing.
Put the rule into action
Restriction weeks still show up as income weeks
A covenant restriction changes what you can work, not how the money is reported. Paid non-working weeks are wage weeks, and benefit agencies read reported earnings and hours together when they decide eligibility.
- Garden leave: you remain employed and paid, so the period reports as wages on a W-2.
- Paid stand-down: a settlement payment for not working is usually wage-type money, allocated in the agreement.
- Unrestricted gaps: no pay, no hours, and a different statement in your filings.
- Earnings tests: disability programs use an earnings threshold that adjusts annually, so the question is what was reported in each month, not what you felt you did.
- Availability: unemployment certifications ask whether you could work. A restriction that bars some work is not the same as being unable to work at all.
Ask the state workforce agency how a paid stand-down is treated before you file, and ask Social Security how a paid non-working period is reported. The SGA entry explains why weeks and earnings are read together, and the weekly certification entry explains what the state expects each week.
Label every week in writing, using the same words
One page per week, with four facts, reused verbatim in every filing:
- Pay source: former employer, settlement schedule, or none.
- Hours worked: zero during restricted weeks, stated plainly.
- Restriction reason: the clause or consent, with the dates it covers.
- Availability: what kinds of work you could accept during the restriction.
Attach the pay statement or the settlement schedule line that matches the week. Send your separation facts once with the unemployment claim statement generator, and reuse the wording every certification week; a certification that drifts from your first statement is the common cause of an overpayment notice. If severance is allocated across weeks in your state, check the rule on the New Jersey unemployment page or the state map, because allocation can bar benefit weeks while the restriction runs.
Edge cases that change the picture
- Unpaid restriction. No wages during the period, which changes both the earnings record and the eligibility questions. Ask whether severance is allocated to those weeks in your state.
- Permitted work in another lane. If the consent allows a non-competing role, income continues and must be reported; hidden work is both a clause breach and a false certification.
- Consulting or gig income during a restriction can violate the covenant and change the earnings record. Read the carve-out before taking it.
- Delayed start dates shift the restriction window and the pay lines, so confirm the new dates in writing.
- Disability claims during the restriction involve separate determinations about work activity; ask the agency how paid non-working weeks will be read before you sign a stand-down.
Keep the pay statements, the consent, and the weekly notes in one dated file in the application tracker. Restrictions are temporary; the records you keep during them decide claims that come later.
| Week type | How it is reported | What to state in filings |
|---|
| Garden leave | Wages from the employer, W-2 | Zero hours worked, employed and restricted |
|---|
| Paid stand-down | Settlement wages on a schedule | Pay source, restriction dates, availability |
|---|
| Unrestricted gap | No pay unless severance allocates | Available for work, actively searching |
|---|
| Permitted non-competing work | New employer wages | Scope permitted by the written consent |
|---|
Put the rule on your own dates with the Severance Package Calculator calculator, along with the Severance Pay definition and the severance layoff math guide hub. Confirm there before you put a date or a dollar amount in writing.
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Frequently Asked Questions
- Do garden leave weeks count as earnings?
- Yes. You remain employed and paid, so the period reports as wages, and benefit agencies read reported earnings alongside hours worked. State the hours as zero and the restriction reason in every filing, using identical wording.
- Can I take consulting work during a restriction?
- Only if the consent allows it. Gig income can breach the covenant and change the earnings record you must report. Read the carve-out wording, then disclose the engagement in writing before accepting it.
- How does severance affect unemployment during a stand-down?
- In allocation states, severance is divided across weeks at your weekly wage and bars benefits for the covered weeks. Confirm the treatment with your state workforce agency before filing, and keep the pay schedule attached to your certifications.
- Does a paid non-working period affect disability determinations?
- It can, because determinations look at reported earnings and work activity. Ask the agency how paid restricted weeks will be read before you sign a stand-down, and keep pay statements with the restriction dates in one file.
Sources (official record — verify before filing)
US FTC — competition policy