Non-Compete Agreement in Pennsylvania
State-specific overview · Employment Law
Pennsylvania enforces reasonable non-competes that protect legitimate business interests and are not unduly harsh or oppressive to the employee.
How Pennsylvania treats Non-Compete Agreement
Pennsylvania courts apply a reasonableness standard, examining whether the non-compete protects legitimate interests such as trade secrets, confidential information, or substantial relationships with prospective customers. The restriction must be reasonable in duration, geographic scope, and line of business; courts commonly uphold agreements lasting one to three years. Pennsylvania does not require consideration separate from employment itself, though courts favor agreements given at the time of hire or promotion.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Pennsylvania.