The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.
Pennsylvania Employee Confidentiality and Unfair Competition - Noncompetition - Agreement
State:
Multi-State
Control #:
US-00046
Format:
Word;
Rich Text
Instant download
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FAQ
If the clause is enforceable and you're in breach, there are various sanctions that your ex-employer can seek. These include: An injunction: This would stop you from carrying out your new role and you may also face payment of the other party's legal costs.
And the use of a confidentiality agreement means that those who receive the information are obligated to maintain the information in secret, which legally prohibits that disclosure subject to an agreement from being a general disclosure that would defeat a trade secret.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Non-compete clauses are enforceable and legal in Pennsylvania, as long as they reasonably protect the business' interest and have reasonable duration and geographic restrictions.
Confidentiality/non-disclosure agreements are contracts in which the employee promises not to disclose certain proprietary information, such as trade secrets. Non-compete agreements are contracts in which the employee agrees not to unfairly compete against his/her (former) employer.
Assuming that the covenant is otherwise valid, a duration of one year or less will almost always be enforceable, and a duration of more than five years will rarely be enforced, if ever.
compete clause is not legally enforceable unless it is reasonable. Whether or not it is reasonable should, under current law, be decided by reference to the circumstances at the time it was entered into.