Pennsylvania Non-Compete Agreements: Are They Enforceable?
When a non-compete holds up in Pennsylvania — and when it doesn't.
Are non-compete agreements enforceable in Pennsylvania?
Non-compete agreements can be enforceable in Pennsylvania, but courts scrutinize them closely. To hold up, a non-compete generally must protect a legitimate business interest, be reasonable in duration and geographic scope, and be supported by adequate consideration. Overbroad or unsupported non-competes are frequently struck down or narrowed.
The consideration trap
A recurring issue in Pennsylvania is consideration: a non-compete signed at the start of employment is generally supported by the job itself, but one an employee is asked to sign later usually needs something new of value in exchange — not just continued employment. Getting this wrong can make the whole covenant unenforceable.
What this means for employers
An employer that wants enforceable restrictions should tailor them narrowly and provide proper consideration, and often pair them with a non-solicitation and confidentiality agreement. Because this area of law is actively changing, current drafting matters.
How Nochumson P.C. helps
Nochumson P.C. drafts enforceable restrictive covenants and litigates them for employers and business owners. Contact us to review your agreements.
Related articles:
- Non-Solicitation Agreements in Pennsylvania
- Non-Disclosure Agreements (NDAs), Explained
- Breach of Contract: Remedies in Pennsylvania
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