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. Covenants not to compete that a court will categorize as unreasonable include agreements that last for a long duration or that restrict the employee to an unreasonable geographic area around West Pittston.
Covenants not to compete are also required to deal only with competitors who are reasonably related to the employer's line of industry. Finally, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before you sign any provisions that could restrict your rights, you may consider hiring a West Pittston, Pennsylvania attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. When it comes to suing an employee for breach of a non-compete clause, an attorney can provide valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.