Non-Compete Agreements in Pennsylvania: What You Need to Know
Pennsylvania follows traditional common law rules for non-compete enforcement, generally upholding agreements that are reasonably limited in scope.
Enforceability Requirements
Pennsylvania courts require that non-competes: be ancillary to employment or sale of business, have reasonable restrictions, and be supported by adequate consideration.
Consideration Requirements
For new employees, the job offer itself is typically sufficient consideration. For existing employees, continued employment may or may not be sufficient—additional consideration like promotion, raise, or extended job security is safer.
Reasonableness Factors
- Time: 1-2 years is generally reasonable
- Geography: Must be limited to where you actually worked
- Scope: Should match your actual job responsibilities
Frequently Asked Questions
What consideration is needed for a Pennsylvania non-compete?
For new hires, the job offer is sufficient. For existing employees, courts are split on whether continued employment alone is adequate. Additional consideration like a raise or promotion provides more certainty.
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