Non-compete Agreements

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Many industries use non-competition agreements, also known as non-compete agreements, as a means to protect company information from a departing employee. In fact, some of you reading this may be subject to one. A non-compete agreement is a contractual restriction on an employee’s ability to compete with a former employer. The benefits of a properly drafted non-compete agreement are obvious: to protect the company from a key employee taking sensitive company information to a competitor or using that information to start his or her own competing company. However, under Pennsylvania law, overly broad non-competes are often considered unenforceable, so they need to be narrowly tailored to protect the legitimate business interests of an employer.