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An enforceable covenant not to compete must be: (1) in writing; (2) made a part of the employment contract; (3) based on valuable consideration; (4) reasonable as to time and territory; and (5) designed to protect a legitimate business interest of the employer.
A covenant not to compete will be deemed valid if it only restricts the employee's opportunity to compete while they remain employed with the employer requiring the covenant, but imposes no restrictions on the employee once they separate from the employment.
In deciding whether to enforce a non-competition agreement, the court will balance the need to protect the employer's legitimate business interests with any burden that enforcement of the agreement would place on the employee. Non-competition agreements must be reasonable in duration and scope.
The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.
A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.
Here are five ways to beat a non-compete agreement. Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.
Pennsylvania courts have generally found non-compete agreements to be enforceable if the agreement: (1) is incident to an employment relationship between the parties; (2) the restrictions imposed by the covenant are reasonably necessary for the protection of the employer; and (3) the restrictions imposed are reasonably
Here are five ways to beat a non-compete agreement. Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.
While Pennsylvania courts repeatedly comment that such restrictive agreements are not favored, properly drafted Restrictive Covenants, although strictly construed and narrowly interpreted, are enforceable in Pennsylvania.
Are Non-Competes Enforceable in pa? 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.