"Until the IRS issues final regulations under Code Section 457(f), a non-compete, particularly if it is combined with this type of part-time consulting arrangement, could still be a valid tax-deferral mechanism. One caveat is that in order for a non-compete to impose a substantial risk of forfeiture that defers taxation, the facts and circumstances must show that (i) given the employee's age and employment opportunities, the non-compete imposes a legitimate burden, and (ii) the employer intends to enforce the non-compete."  MORE >>