Non-Compete Laws in Pennsylvania
Pennsylvania enforces non-competes under a reasonableness standard.
Review My Non-CompeteNon-Compete Overview: Pennsylvania
Pennsylvania enforces non-competes under a reasonableness standard. Courts consider the duration, geographic scope, and whether the restriction protects a legitimate business interest. New consideration is required for existing employees, and courts may blue-pencil overly broad agreements.
Key Points for Pennsylvania
Non-Compete Laws by State
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Frequently Asked Questions
Are non-competes enforceable in Pennsylvania?
Yes, if they are reasonable in scope, duration, and geography, and protect a legitimate business interest. Pennsylvania courts evaluate each agreement on its specific facts.
Do existing employees need new consideration for a non-compete in Pennsylvania?
Yes. Unlike some states, Pennsylvania requires new and valuable consideration for non-competes presented to existing employees. Continued employment alone is generally not sufficient consideration.
How long can a non-compete last in Pennsylvania?
Courts generally consider 1-2 years reasonable, depending on the industry and the employee's role. Non-competes longer than 2 years face increased scrutiny.
Can a Pennsylvania court modify my non-compete?
Yes. Pennsylvania courts can blue-pencil non-competes to make them reasonable rather than voiding them entirely. The court may reduce duration, narrow geographic scope, or limit the activities restricted.
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