In Pennsylvania, a covenant not to compete usually 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". An employee who signs a covenant not to compete can receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.

When are Covenants not to Compete Unenforceable?

Whether a given judge will enforce a non-compete agreement is difficult to discern in advance. Even if the employee's interests may be significant Pennsylvania courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Vandergrift that is unreasonably broad.

Covenants must also be limited to restricting dealings with those competitors that are reasonably related to the employer's industry. Finally, the employer needs to have an acceptable business purpose which justifies their motives in requiring their employee to sign a covenant not to compete.

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

A Vandergrift, Pennsylvania lawyer can help you review the covenant before you sign any provisions that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. 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.