This implies that Pennsylvania employers should ensure that their non-compete obligations are treated appropriately. The safest thing to do with new employees is to request and have the agreement signed before you start working. We recommend that you note this in your job offer letter, including indicating that it is necessary as a condition of taking a job, and attach a copy to the job offer letter. Many employers have not, and we are available to help you correct this situation or review your job postings. We are also at your disposal to guide and recommend you through non-compete obligations, non-solicitation, confidentiality and other agreements (which are usually covered by the same consideration requirements). These agreements can be very useful if a departing employee tries to take away your business. You can contact the author of this article below or your other Houston Harbaugh attorney. HB 681 was subsequently amended to include limited exceptions to the proposed general rule that “[t]he obligation not to compete is contrary to public policy and void and unenforceable to the extent that the agreement, not competitive, restricts the right of a health professional to practise in a geographical area for any period of time following a separation event”. For example, a medical employer may enforce a non-compete obligation if all of the following are true: If the court finds that you have breached your non-compete obligation, there may be some different outcomes that may occur depending on the severity of the harm assessment. If a court finds that an employee is in breach of a non-compete obligation, it may grant the former employer an injunction preventing the employee from continuing competition in the event of a threat of sanctions for non-compliance, or award the former employer financial damages, or both.

In addition, it sometimes happens that the damage suffered by the former employer as a result of such competition exceeds the net economic benefits that the employee has derived from the competition. It is therefore possible that an employee may be forced to pay damages in excess of the income he has actually derived from competition. For this reason, it is important that any employee who has signed a non-competition clause proceeds very carefully before taking on a new position in the same industry. It should also be noted that even in the event that an employee is excluded from competition due to a non-competition clause, it is sometimes possible for the employee or his or her legal counsel to negotiate a redemption of the clause. In any case, an employee who wishes to take up a new position in the same core industry after signing a non-compete obligation should only do so after consulting a lawyer. Lawyers at Wolf, Baldwin & Associates, P.C. have experience representing employers and employees in many types of work claims. We can help employees who are negotiating or who are subject to non-compete obligations, and we can advise companies on actual and potential work claims. Our lawyers can help you know and protect your employment rights.

Click here to contact us now to make an appointment. She attempted to apply the non-compete clause in her contract, which prevented her from working for a competitor within a 300-mile radius for two years. The Pennsylvania Superior Court ruled that a previous injunction against Brobston should be set aside, arguing that an employee fired for poor performance did not pose a threat to business interests as a high-performing seller would. Pennsylvania courts have generally held that non-compete obligations are enforceable if the agreement relates to an employment relationship between the employer and the employee. the restriction imposed is reasonably necessary to protect the employer`s business interests; and the restrictions imposed are reasonably limited in terms of duration (time) and geographical area. Nevertheless, the Pennsylvania Supreme Court clarified that non-compete obligations and restrictive agreements are not preferred in Pennsylvania and are considered a trade restriction that prevents a former employee from earning a living. As a result, the courts review restrictive agreements in employment contracts to determine whether the burden placed on the former employee is unreasonable. Even if the courts decide to enforce an agreement, if an employer imposes restrictions beyond what is necessary to protect the employer, the courts may limit the restrictions to those that are reasonably necessary to protect the employer. For example, Fitness Essentials maintained the non-compete and non-solicitation provisions of an independent contractor against a former fitness trainer who worked at one of Fitness Essentials` facilities.

122 A.3d-1122. The trainer, Nill, signed an independent contractor contract with the following wording: Ideally, you don`t want a non-compete clause at all, as it will affect your career opportunities after leaving your current job, regardless of the reason for your departure. If you cannot get your employer to completely abandon the non-compete obligation, work to reduce the restrictive nature of the clause and formulate the non-compete obligation as accurately as possible. However, your first consideration should be not to sign at all, as this will not give you any advantage. For example, if your employment status changes significantly, for example. B a significant promotion, this may mean that your employer may ask you to sign a non-compete agreement. However, you cannot be asked to sign a non-compete clause simply because you continue to work in your job. Many issues still need to be fully resolved as a result of the Supreme Court`s decision in Socko v. Mid-Atlantic. For example, there may be questions about what an employer`s new consideration represents in exchange for an employee signing a non-compete obligation.

These are issues that are best dealt with with a lawyer who is familiar with business and labour law. Agreements are not always enforceable. The courts continue to clarify when such agreements are valid. Most of the time, there is a single expedited litigation when an employer tries to enforce a non-compete clause or restrictive agreement. Employers argue that they will suffer direct harm from an employee who violates a non-compete obligation. As a result, employers file injunctions to try to remedy the situation immediately. Injunctions are interim injunctions while awaiting litigation, sometimes issued by courts until a final decision on a plea is rendered. In order for an employer to obtain an injunction against the former employee, the employer must provide evidence that: (1) the injunction is necessary to prevent immediate and irreparable harm that cannot be adequately compensated by monetary damages; (2) The refusal to issue the injunction causes more damage than its grant; (3) The injunction will return the parties to their status quo as it existed prior to the alleged misconduct; (4) the employer is likely to prevail over the merits; (5) the injunction is reasonably intended to enforce a restrictive agreement; and (6) the public interest is not prejudiced when the injunction is issued […].