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In Pennsylvania, a non-compete agreement is a type of employment contract that allows companies to protect their trade secrets and business practices by uses restrictive covenants to prevent existing employees and independent contractors from sharing sensitive information with competing businesses. These specifics often include promises that the employee will not pursue employment with a competitor for a given amount of time or that they will not work for a similar company within a geographic scope.
Non-competition agreements may stand on their own as a contract. Employment agreements may also include a non-compete clause. Such agreements are used to protect an employer's legitimate business interests. To determine the enforceability of non-compete agreements in Pennsylvania courts in the event that a former employee must be sued, employers should seek legal advice from a law firm that practices employment law.
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Although there are no specific laws that govern non-compete agreements in the State of Pennsylvania, the agreement should only be written in a way that protects the employer's legitimate business interests:
The non-compete agreement must be written only in relation to the employment relationship. It must also be reasonable in geographic scope and time.
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To write a Pennsylvania non-compete agreement, include the following clauses:
Both parties should sign and print their name as well as date their signatures. The parties should each receive a copy of the finalized agreement for their records.
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