Non-Compete Agreement Pennsylvania

Non-compete agreements have become increasingly common in today`s workforce. These agreements are designed to protect an employer`s interests by preventing employees from leaving and working for competitors or starting their own competing business. In Pennsylvania, non-compete agreements must meet certain criteria to be enforceable.

First and foremost, non-compete agreements in Pennsylvania must be reasonable in their scope. This means that the restrictions placed on the employee must be limited in both time and geographic area. For example, an agreement that prohibits an employee from working in the same industry within a 100-mile radius for five years would likely be considered unreasonable.

Additionally, non-compete agreements must be necessary to protect the employer`s legitimate business interests. This could include protecting trade secrets, confidential information, or customer relationships. A non-compete agreement that is simply designed to prevent competition without any legitimate business interests at stake is unlikely to be enforceable.

Furthermore, non-compete agreements must be supported by consideration. This means that the employee must receive something of value in exchange for signing the agreement. This could be a promotion, a raise, or access to confidential information.

If a non-compete agreement is found to be unenforceable, the employee is free to compete against their former employer. However, it`s important to note that other restrictive covenants, such as non-solicitation agreements or non-disclosure agreements, may still be in place and enforceable.

It`s important for both employers and employees to fully understand the terms and limitations of non-compete agreements in Pennsylvania. Employers should ensure that their agreements meet the necessary criteria to be enforceable, and employees should carefully review and consider the terms before signing.

In conclusion, non-compete agreements in Pennsylvania must be reasonable in scope, necessary to protect legitimate business interests, and supported by consideration. By following these guidelines, employers can protect their interests without unfairly restricting their employees` ability to work and compete in their chosen field.