You signed a non-compete when you took the job. Now you're thinking about leaving, and you're wondering if it's actually valid or if it's just scare tactics. Pennsylvania courts enforce non-competes, but they don't let employers write overbroad restrictions. Here's how courts decide.
Yes, non-competes are enforceable in Pennsylvania. But courts scrutinize them heavily and will strike them down or modify them if they're unreasonable. A non-compete is enforceable if it satisfies three requirements. Fail on even one, and the court will likely void it or rewrite it.
A non-compete must have (1) adequate consideration, (2) reasonable scope in time, geography, and restricted activity, and (3) be necessary to protect a legitimate business interest.
If any element is missing or excessive, the non-compete fails. Pennsylvania courts don't give employers much leeway here.
Consideration is what you get in exchange for signing the non-compete. It has to be real and substantial, not illusory.
If you signed the non-compete when you were hired, that new job is consideration. The court assumes you got something of value (the employment itself). That's enough.
If you're an existing employee asked to sign a non-compete mid-employment, consideration gets tricky. Continued employment alone may not be sufficient in Pennsylvania. You need something additional: a raise, promotion, changed duties, or access to new information. The law here is unsettled. Some cases say continued employment counts. Others say it doesn't. Err on the side of caution: if your employer asks you to sign a non-compete after you're hired, ask for something concrete in return.
Courts are skeptical of employers who claim "keeping your job" is consideration. That's hollow language. If you've been employed for five years and your employer suddenly produces a non-compete, what exactly changed? The court will ask the same question.
The non-compete must be reasonable in three dimensions: time, geography, and activity restricted.
Duration: Non-competes lasting more than two years face strong skepticism. Six months to one year is clearly reasonable. Eighteen months to two years may work depending on the industry. Three years or more is generally unenforceable unless you're in a highly specialized field where trade secrets take years to become obsolete.
Geography: The restricted territory must match the business's actual market. If you work in Bristol, Pennsylvania and the non-compete forbids you from working within 50 miles, that's probably reasonable. If it restricts you from working anywhere in the continental United States, that's likely overbroad unless the employer does truly national business.
Activity: The restriction can't be vague or absurdly broad. "You can't work in sales" might be enforceable. "You can't work in any business-related field" is probably too broad. The restriction should track the actual competitive threat posed by your departure.
Courts will look at what you actually did for the employer and what would genuinely compete with them. A salesman at a HVAC company can be restricted from selling HVAC services. He probably can't be restricted from selling home insurance or roofing even if those compete more broadly for the homeowner's dollar.
The employer must show the non-compete protects something worth protecting: trade secrets, confidential information, substantial relationships with specific prospective or existing customers, or extraordinary or specialized training.
A general desire to prevent competition isn't enough. The employer has to identify what specifically you learned, what customer relationships you built, or what information you carry that would genuinely harm them if you took it to a competitor.
This is where many non-competes fall apart. An employer can't justify restricting you if the "secret" information is publicly available or if your relationships are based on your personality, not confidential knowledge or special access.
If a non-compete is overbroad, Pennsylvania courts can modify it rather than striking it entirely. This is called the "blue pencil" doctrine. A court might take a three-year restriction and reduce it to two years, or reduce the restricted geography.
Not all states do this. Some void overbroad non-competes outright. Pennsylvania is more employer-friendly and will rewrite the agreement to make it enforceable.
This cuts both ways. It means you can't always rely on a non-compete being void just because it's unreasonable. The court might fix it. But it also means an employer might face judicial revision if they've written something too broad.
Pennsylvania recently restricted non-competes for healthcare workers. Check our update on the healthcare non-compete law for details on what restrictions now apply to physicians, nurses, therapists, and other healthcare professionals.
Overly broad geography: A dental practice in Bristol restricting you from practicing dentistry anywhere in a 25-mile radius might be enforceable. A 50-mile radius probably is too. A 100-mile radius almost certainly is.
Excessive duration: A five-year non-compete is a red flag unless you're in a field where information and relationships stay competitive for years (like private wealth management). For most industries, two years is the outside limit.
Vague activity restriction: "You can't work in any capacity at a company in the same industry" is too vague. Courts want to know the specific activity restricted.
No legitimate business interest: If you were a junior employee with no access to secrets or key customers, the non-compete may not stand up. The employer has to show you possessed something worth protecting.
Lack of consideration: If you signed it as an existing employee with no raise or promotion, that might be enough to void it depending on when it was signed and what changed.
Don't assume the non-compete is unenforceable just because it feels unreasonable. Pennsylvania courts will enforce narrowly-drawn non-competes. A two-year restriction on your specific role within a 10-mile radius is probably valid.
Don't assume it's ironclad either. If it's a five-year restriction on working anywhere in a 50-mile radius with vague language, it may fail. But don't bet your next job on it. Courts are unpredictable, and even if you think you'll win, litigation is expensive.
Read it carefully. Know what you're bound by. If the restriction looks overly broad, say so when you're negotiating the job. Ask for a smaller geography, shorter duration, or narrower activity restriction. Employers sometimes soften these provisions if you push back.
If you're thinking about leaving and the non-compete worries you, get legal advice before you accept the new job. A 30-minute consultation with an attorney costs less than the litigation you'll face if you breach it and get sued.
Narrower is more enforceable. A two-year restriction on activity within a 10-mile radius that targets a specific competitive threat is stronger than a five-year blanket prohibition on all activity statewide.
Be specific about what you're protecting. Don't write the non-compete and assume the court will figure it out. Identify the trade secrets, key customer relationships, or specialized training you're protecting. This strengthens your hand if you have to enforce it.
Offer real consideration for non-competes signed after employment begins. A verbal promise of continued employment doesn't cut it. Raise, promotion, or expanded access to confidential information works better.
Enforce them promptly and specifically. If an employee breaches a non-compete and you wait six months to sue, a court might view that as abandonment of the restriction. If you pursue it, do so quickly and precisely, naming the employer and the specific competitive activity.
If you signed a non-compete and you're thinking about leaving, don't guess about enforceability. Call us at 215-949-0888 for a consultation. We'll review the agreement, tell you what risk you're actually facing, and advise on your next move. Sometimes that means negotiating a release with your employer. Sometimes it means taking the job with calculated confidence that the non-compete won't hold up. Either way, you'll know the facts.
If you're an employer wanting to protect your business, we'll draft a non-compete that holds up in court without being overreaching.
Related: Non-Compete, Non-Solicitation & Restrictive Covenants | Employment Agreements, Confidentiality & Trade Secrets | Healthcare Non-Compete Act
Free consultations available for most practice areas.
Book a Free Consultation Or call 215-949-0888