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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Brian R.

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Highly respected strategic advisor and trusted business partner to diverse stakeholders, ranging from C-suite executives to frontline managers in both public and private sectors. Recognized thought leader known for translating complex legal concepts into straightforward, pragmatic, actionable advice. Proven track record of collaborating with executive teams to drive and execute corporate initiatives. Expert at leading tactical legal strategies across various business functions in dynamic, high-growth environments, with a keen sense for balancing legal rigor and practical business solutions.

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Prenuptial & Family Law Attorney | Licensed in PA & NJ Based in Harrisburg, PA, Celia Butler is a trusted and compassionate attorney with over 12 years of experience in family law. She focuses her practice on prenuptial agreements, believing strongly in their power to foster transparency, security, and mutual respect in a marriage. Celia sees prenups not as a sign of mistrust, but as a thoughtful and responsible step toward building a strong foundation for the future. Known for her professionalism, discretion, and unwavering dedication, Celia prides herself on always putting her clients first. She brings a deep understanding of sensitive family matters — from custody and property distribution to marital agreements — and guides clients with clarity, empathy, and a commitment to practical results. Celia is dually licensed in Pennsylvania and New Jersey and holds federal admissions in the Middle District of Pennsylvania and the District of New Jersey, allowing her to serve a broad range of clients across state and federal jurisdictions.

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Employer

Noncompete Agreement

Florida

Asked on Jul 6, 2023

How to draft a noncompete agreement?

I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.

Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

Read 1 attorney answer>

Employment

Noncompete Agreement

Washington

Asked on Jul 11, 2023

Noncompete agreement termination options?

I recently left my job after signing a Noncompete Agreement. I am looking for a new job, but I am concerned about the restrictions in the Noncompete Agreement and how it might affect my ability to find a new job. I am looking for advice on my options for terminating or modifying the Noncompete Agreement so that I can find a new job without having to worry about any potential legal repercussions.

Merry K.

Answered Aug 15, 2023

I am a WA State employment attorney. If you didn’t receive anything in return for signing the non-compete, it may be relatively easy to get out of it. If, however, you signed in return for something, such as a severance package, it will be challenging to get out of the agreement. However, many non-compete agreements are written overly broadly and may not be enforceable under the laws of WA and other states. You may want to consult with a WA State employment attorney for a review of the documents and law(s) of the state(s) where you may want to work or set up a business. (A WA State attorney can only provide legal advice in WA, but can help you find applicable law/case decisions for other states but without providing anything beyond information, much like a law librarian).

Read 1 attorney answer>

Employment

Noncompete Agreement

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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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Contracts

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Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

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Employment

Noncompete Agreement

Delaware

Asked on Dec 12, 2023

Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?

If someone accuses you of fraud, because they believe you never had intended to honor your employment contract such as non-compete/non-solicit. Could this ever become a criminal case, resulting in criminal/jail time?

Matthew S.

Answered Dec 16, 2023

No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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