In Pennsylvania, a covenant not to compete generally requires that, upon leaving the company, an employee agrees not to be employed by their employer's competitors. A covenant not to compete may also be called a "non-compete clause". Employees who sign them can either receive compensation or simply be required to agree as a condition for their employment.

When are Covenants not to Compete Unenforceable?

Whether or not a judge will conclude that the covenant is enforceable can be challenging to know beforehand. Although the interests of employers are significant, courts in Pennsylvania also give importance to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. A court will usually hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Lititz that is excessively large.

Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Lastly, an employer is required to have a legitimate business reason in its motivation for imposing a covenant not to compete on an employee.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

Since covenants could restrict your rights, you may wish to hire a Lititz, Pennsylvania lawyer to review any documents. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.