Thursday, December 10, 2020

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


  
                                  There Are Strategies - but They Can be Complex for the Uninitiated

                      Free analysis - Call 610-647-5027

The Primary Problem With Non-Compete Agreements is not Their Enforceability but, Rather, the Difficulties They Create When One Searches for a New Job

The thing about non-compete agreements is that they typically are not enforceable unless a former employee "steals" clients or customers from his/her former employer, or takes "confidential information" and overtly uses that information to compete (unfairly) with the former employer.

That said, an employee will be unable to easily get a "declaration" from a court declaring their non-compete unenforceable, and so it will remain in existence.  Enforceability in that common situation is really a non-factor - potential new employers see a non-compete and they typically move on to the next qualified applicant.

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

Non-Competes Make Finding a New Job Extremely Challenging

Today, the workplace is more fluid then ever, and employees typically move from one company to another on numerous occasions until they find their ideal fit.  These transitions can be voluntary or involuntary.  It is the voluntary departures (resignations) that companies are most concerned about - it takes a significant amount of time, human capital and resources to train new employees.  Employers positively loathe when an employee that they have "groomed" for two years departs to perceived greener pastures. 

What is an employer's best weapon to prevent such an exodus?  A non-compete agreement.  Companies know that non-compete agreements are what i refer to as "plutonium handcuffs," designed to make it extremely difficult for an individuals to move to a competing company in their chosen profession.



Ask Whether You Will be Required to Sign a Non-Compete BEFORE You Accept a Job Offer

There are numerous, albeit limited, strategies to use when you are offered a non-compete.  Your leverage is stronger if you do so before you accept a job offer.

Companies know this, and one of their favorite strategies is to not inform an employee of the existence of a non-compete before the first day on the job.  At that point, most people understandably feel they do not have any choice but to sign the contract.  


The work around?  Ask the company in writing before you take the job if you will be expected to sign a non-compete and, if it answers in the affirmative, ask to see a copy of it.  

Companies typically are pretty inflexible when it comes to negotiating non-competes, often responding "We ask every one to sign the same agreement."  However, over the years, we have found some approaches that often result in limited success, particularly where the job offer is on the table. They want you, and will feel pressure to appear fair and reasonable.

How Can I Get Out of a Non-Compete?

If you are thinking about leaving your employer, and you have a non-compete, there are strategies that can work.  However, you should probably consider hiring an attorney to assist with such negotiations (or in determining whether it is truly in your best interest to try -sometimes it is better to just leave the issue alone).

If the company has ended your employment, it is sometimes possible to get an agreement that would minimize or eliminate the non-compete. But, that is hard for the employee to do directly.  "Why do you want out of the non-compete, do you plan on trying to hurt us?"  Again, it may be better to invest in counsel to do such heavy and critical lifting for you.

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Philadelphia-Area Non-Compete Employment Attorneys

 

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