Non-Compete Agreements in Pennsylvania - The Basic Test

Good Idea to Seek Counsel if You Are Dealing With One of These

Remedies for an Existing Non-Compete Agreement - Non-Competition Clauses Make it Difficult to Find a New Job

Non-compete agreements are utilized by employers to prevent employees from going over to the competition, and to prevent those with intimate client contact from taking those clients with them to a new employer (or on their own venture). The contracts limit the ability of the employee to pursue comparable jobs in the same field after the employment relationship has been terminated.

Handcuff a Person's Ability to Find Work in His/Her Chosen Field

The most common provisions are non-solicitation clauses, which  limit the employee's right to call on specific customers, and non-compete clauses, which limit the employee's right to work for certain companies. They commonly restrict the employee for a specified period of one to several years.

Key Restriction

Non-Solicitation Clauses Prohibit Former Employees from Working With Former Clients or Customers and Are Always Enforceable in Pennsylvania

In Pennsylvania, the key provision is the non-solicitation provision.  Courts don't get too concerned if Joe or Jane Doe left to join a competitor unless they are possession of some unique information (think: Coca Cola formula, Thomas English Muffin recipe).  They do, however, become quite concerned if Bill or Bonnie Average take customers away from their former employer after they leave to join a competitor or to start a new venture on their own. 

Here is the basic test:  if you leave your former employer and engage in activity that your former employer can prove caused it to lose money (think: loss of a customer), then your former employer will have an excellent chance of getting your non-compete enforced (think: get an injunction stopping you from doing what you are doing).

Of course, all of this presupposes that your non-compete agreement is enforceable.  There are a number of rules that govern such an issue.  We have in the past and will in the future Blog more on that issue in the future. Click Here to find one Blog that provides an overview of the basic rules concerning what is required to create an enforceable Non-Compete Agreement in Pennsylvania.
 
Prior to Signing a Non-Compete

A non-compete agreement can be particularly devastating to salespersons, licensed professionals or employees with prized skills. Therefore, you should think carefully about your future before you sign one.  If you are thinking of leaving your current employer for greener pastures, and you are bound by a non-compete, you may want to seek legal counsel to establish the best strategy for minimizing your risk in doing so.

HERE ARE SOME OTHER ARTICLES YOU MAY FIND WORTHWHILE:

Are Non-Compete Agreements Enforceable in Pennsylvania?  How Can I Negotiate a Non-Compete?

Non-Compete Agreements and Trade Secret Litigation - The Fulcrum is Whether the Legitimate Business Interests of the Former Employer Are Detrimentally Affected by an Employee's Violation

Non-Compete Agreements - Legally Enforceable or Not, Negotiation is Often the Key

The Truth About Non-Competition Agreements That Your Employer Does Not Want You to Know - Mere Breach of Non-Compete Not Enough for Injunction

The Milkman Principle: Why Solicitation of Former Clients or Customers Will Always Get You in Hot Water in Pennsylvania if You Have a Non-Compete Agreement

Pennsylvania Employment Lawyers: How to Respond to Cease and Desist Letters Concerning Non-Compete Agreements

I am Being Offered Severance But Asked to Sign a Non-Compete in Pennsylvania - What Should I Do?  Pennsylvania Employment Attorneys Explain

Should I Sign a Severance or Separation Agreement Requiring Me to Consent to a Non-Competition Restriction?  Pennsylvania Employment Lawyers Discuss

What Fiduciary Duties do Employees Owe to Their Employers? Taking Your Employer's Confidential Information Before Resigning Violates an Employee's Duty of Loyalty

How Can I Contact My Old Clients and Customers Without Violating My Confidentiality, Non-Compete and Non-Solicitation Agreement?  Pennsylvania Non-Compete Lawyers

Trade Secret Clauses in Employment Agreements - Does My Employer Have Trade Secrets? Pennsylvania Non-Compete Lawyer

Confidentiality and Trade Secret Covenants in Employment Contracts are Always Valid, and Your Electronic Footprint Tells a Story

Insulation Corp. v. Brobston:  Is My Non-Compete Covenant Valid and Enforceable if I am Fired From My Job Under Pennsylvania Law?

Overly Broad Non-Compete Agreement in Pennsylvania?  Need an Attorney for Your Non-Compete Contract Dispute?

Kistler v. O'Brien:  I Signed My Non-Compete Agreement After I Started My Job - is it Enforceable Under Pennsylvania Law?

What State's Law Applies to My Employment Contract?  What is a Choice of Law Provision?

Non-Compete Agreements With Non-Solicitation Restrictions in Pennsylvania - Some Insight From Philadelphia Area Employment Lawyers

Recruiters and Non-Compete Agreements in Pennsylvania

IT Consultants, Personnel Recruiters and Non-Compete - Non- Solicitation Agreements in Pennsylvania

"Headhunters" and Non-Compete Agreements in Pennsylvania - Some Things to Keep in Mind

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