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Roger, Attorney
Category: Business Law
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Pennsylvania statutes and case laws on non compete agreements

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Submitted: 9 years ago.
Category: Business Law
Expert:  Roger replied 9 years ago.

There is no statute regarding "non-compete agreements". These agreements are governed by common law.

The Pennsylvania Supreme Court said in Omicron Sys. v. Weiner, 2004 PA Super 389 (2004) (most recent reported decision) the following about these agreements:

Our law permits equitable enforcement of employee covenants not to compete only so far as reasonably necessary for the protection of the employer. However, restrictive covenants are not favored in Pennsylvania and have been historically viewed as a trade restraint that prevents a former employee from earning a living. Such agreements are enforceable "if they are reasonably limited as to duration of time and geographical extent." Jacobson & Co. v. International Environment Corp., 427 Pa. 439, 235 A.2d 612, 620 (Pa. 1967) (citation and quotation marks omitted).

Fundamental, then, to any enforcement determination is the threshold assessment that there is a legitimate interest of the employer to be protected as a condition precedent to the validity of a covenant not to compete. Generally, interests that can be protected through covenants include trade secrets, confidential information, good will, and unique or extraordinary skills. If the covenant is inserted into the agreement for some other purpose, as for example, eliminating or repressing competition or to keep the employee from competing so that the employer can gain an economic advantage, the covenant will not be enforced.

Expert:  Roger replied 9 years ago.
Please let me know if you have any additional questions. If not, please click "Accept" so I may receive credit for my time. Thanks.

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