Can I require employees to sign non-compete agreements in Pennsylvania? What are the requirements?

Requirements for Non-Compete Agreements in Pennsylvania

Non-compete agreements are enforceable in Pennsylvania, but there are certain requirements that must be met ^[1.1].

1. Consideration: The employee must receive some form of consideration in exchange for signing the non-compete agreement. This can be in the form of a job offer, a promotion, or some other benefit.
2. Reasonableness: The non-compete agreement must be reasonable in terms of its duration, geographic scope, and the type of activities it restricts. The agreement must be no broader than necessary to protect the employer’s legitimate business interests.
3. Necessity: The non-compete agreement must be necessary to protect the employer’s legitimate business interests. This means that the employer must have a legitimate interest in protecting its confidential information, trade secrets, or customer relationships.
4. Notice: The employee must be given notice of the non-compete agreement before accepting employment or at the time of a change in employment status.
5. Signed Writing: The non-compete agreement must be in writing and signed by both the employer and the employee.

Additionally, Pennsylvania law requires that every state contract contain a nondiscrimination clause barring discrimination in employment because of race, color, religious creed, national origin, ancestry, sex, or age ^[2.1].

Source(s):

• [1.1] Conflict of interest.
• [2.1] Nondiscrimination clause.

Jurisdiction

Pennsylvania

• Labor