Pennsylvania Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in Pennsylvania?

Yes. Non-compete agreements can be used by employers in Pennsylvania to protect confidential business information from prior employees.

The Supreme Court of Pennsylvania established specific requirements that must be met by all non-compete agreements in order for the contracts to be legally enforceable. These requirements include:

  1. The contract must be between parties that have an employment relationship.
  2. The restrictions are reasonably necessary to protect the employer’s interests.
  3. The restrictions are reasonable in regard to duration and geographic area.

Courts in Pennsylvania will also used a test called the “balance test” to determine whether a non-compete agreement is reasonable. Courts will consider the balance between the protection the non-compete affords the employer with the effects the agreement has on an employee attempting to earn a living.

How Long Does a Pennsylvania Non-Compete Agreement Last?

Courts in Pennsylvania have determined that two years is a reasonable amount of time for a non-compete agreement to last. Non-compete agreements can be made for longer, however if challenged, they are more likely to be ruled unreasonable and unenforceable.

How Do You Get Around a Non-Compete Agreement in Pennsylvania?

If an employee wants to get around a non-compete agreement or terminate the contract, they must prove to a court that the contract is unreasonable and imposes an undue hardship on the employee.

If a non-compete agreement in Pennsylvania doesn’t adhere to the rules implemented by the Supreme Court or doesn’t pass the balance test, it will be struck down.

What Voids a Pennsylvania Non-Compete Agreement?

All non-compete agreements must be backed by adequate consideration. In many states, continued employment is sufficient consideration for a non-compete. Pennsylvania however requires additional consideration. Additional consideration can include a change in status like a new job title, or additional compensation and benefits.

Frequently Asked Questions

How do I hire a lawyer to draft a noncompete agreement in Pennsylvania?
How much does it cost to hire a lawyer to review a noncompete agreement in Pennsylvania?

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General practitioner since 2005, general practice; civil disputes, torts.... logo Call us: (410) 878-7006 Menu Services All Maryland and Pennsylvania Legal Services Susan C. Trimble Attorney at Law WHAT WE ARE ABOUT Susan C. Trimble, is an established attorney in the Maryland area. Her work is infused with commitment to her community and family. is tailored to your wants and needs. Here you will find an approachable, personable and conscientious advocate. EDUCATION: Juris Doctorate (JD). University of Baltimore School of Law, Baltimore, Maryland, USA. 2006. Bachelor of Science (BS), English Literature. Towson University, 1989. Associate in Claims, (AIC) certification. Fraud Claims Law Associate, (FCLS) certification. Member of Maryland State and Pennsylvania Bar Associations.

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Employee Rights

Noncompete Agreement

Washington

Asked on Jan 19, 2025

Can my employer enforce a non-compete agreement if I was laid off due to COVID-19?

Can my former employer legally enforce the non-compete agreement I signed when I was hired, considering I was recently laid off due to the economic impact of COVID-19 and the agreement seems to restrict my ability to find new employment in my field? I have been actively seeking new job opportunities in the same industry, but potential employers are hesitant to hire me due to the non-compete agreement, which restricts me from working for competitors or starting my own business in the same field for a certain period of time. I want to understand if the non-compete agreement is still valid and enforceable given the circumstances of my layoff and the current job market conditions.

Merry K.

Answered Jan 28, 2025

I'm sorry, but your question is impossible to answer without reviewing your contract and knowing more about your type of job and compensation. Be aware that terms in such agreements are often found to be non-enforceable. You can start by reviewing the Washington State law on point: https://app.leg.wa.gov/rcw/default.aspx?cite=49.62&full=true

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Employment

Noncompete Agreement

New Jersey

Asked on Apr 15, 2021

Can I work for a competitor with my current noncompete?

I have ended my non competent consulting agreement with my current employee and I have an offer to work as an employer “not as consultant” with a competitor company to my privious employees so can I work as an employee without any problem? The consultant agreement says the following: Under any circumstances the consultant shall not engage directly or indirectly either as a principal agent , consultant,stock holder , partner or in any other capacity whatsoever have any other relationship with any business which compete with the company in USA.

Jane C.

Answered Apr 16, 2021

I suggest that you have an attorney review the entire agreement. It is hard to comment reading a paragraph taken out of context. From the limited facts you present, it seems that you cannot accept this job offer without violating the terms of the non-compete. Disclaimer - This information is provided for general informational purposes only. No information contained in this post should be construed as legal advice and does not establish an attorney-client relationship.

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Employee Rights

Noncompete Agreement

Texas

Asked on Jun 3, 2023

Noncompete agreement and moonlighting?

I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.

Curt L.

Answered Jun 6, 2023

If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.

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Employee Rights

Noncompete Agreement

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Asked on Jul 4, 2023

How does a noncompete agreement work?

I am an employee at a small business and I have recently been asked to sign a noncompete agreement. I am not sure how these agreements work and what rights I have as an employee. I am also concerned about the restrictions that could be placed on me if I sign the agreement. I want to make sure I understand the implications of signing the agreement before I do so.

Nancy B.

Answered Aug 4, 2023

In its simplest terms, a noncompete agreement in an employment context is an agreement that says you will not compete with your former employer if you ever stop working for them. It typically forbids things like: + Working for a competitor + Starting a company that sells the same services/products as your employer + Recruiting employees from your current employer after you have left that employment. One thought is that this could be requested shortly before letting an employee go just to protect the company from competition but I hope that is not the case here as it seems like an unfair use of the noncompete agreement ability in Georgia. The issues are usually the geographical scope (for example within 15 miles of Dalton, Georgia), the time period (one or two years is usually sufficient and courts do not favor long noncompete agreements), and the consideration (such as a new job - which is not applicable in your case, or more compensation). Regards, Nancy A. Burnett

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Noncompete Agreement

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Asked on Dec 5, 2024

Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?

I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?

Damien B.

Answered Dec 6, 2024

Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.

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