The Supreme Court of Pa. cancelled an employer`s written no-competition agreement on 16 June 2020, which was signed after the start of employment. Rullex Co. v. Tel-Stream, Inc., No. 27 EAP 2019 (Pa. 2020). All contracts, in order to be binding, must be supported by what the courts call “reflection,” which simply means that the employee received something valuable in exchange for signing the contract. It has long been the law in Pennsylvania, but not all other states, that the pursuit of employment at will is not sufficient, since the employee can be fired at any time, with or without reason.
Therefore, a non-compete clause should be signed in Pennsylvania before or at the beginning of employment or in return for promotion, salary increase, cash payment, new ancillary benefits, job security obligations or anything of sufficient value. For neighbouring states, Delaware, Maryland, New Jersey, New York and Ohio accept job retention as sufficient consideration for non-competition, but not West Virginia. Competition bans are one way to reduce this risk. Pennsylvania courts routinely impose well-thought-out and reasonable non-compete clauses, but in addition to the language and scope of the non-compete clause, the timing and circumstances of approaching an employee to sign a non-compete clause are important factors. In Pennsylvania, non-injunction agreements may be imposed if the agreement refers to an employment relationship between the employer and the worker; The agreement is based on compensation considerations that may include an initial job offer or a positive increase in employment conditions; The agreement is reasonably necessary to protect the legitimate interests of the employer; the agreement is proportionate in its duration and geographical scope. If you have already quit your job and now realize that your non-compete obligations may affect your employment chances, contact a lawyer. The rules for non-competitions in Pennsylvania may allow you to establish a new agreement with your former employers to protect their interests and future income prospects. A lawyer may also explore other options for amending or exiting the agreement. If your job is in a highly competitive field, your employer may refuse to negotiate the terms of the agreement. If your employer prevents you from working in your field when you leave the company, you can negotiate a compensation package that you pay when you are unable to work under the terms of a non-compete clause.
In this way, you always receive income, even if you have to respect the terms of the clause. To protect businesses, there are non-injunctions and non-compete bans in Pennsylvania. However, courts often do not impose it when companies attempt to use these agreements to inappropriately limit employees. Another possibility of negotiation is to delay the start of the competition. This will allow you to verify that the job opportunity is well suited. If you delay the start of the agreement by one or two months, you can leave the job on time and decide to work for any other company you love, without restrictions. To ask a legal question, email AskAttyBernie@timesonline.com or email Ask Attorney Bernie, c/o Beaver County Times, 400 Fair Ave., Beaver, PA 15009. A non-competitive agreement is a kind of restrictive agreement that limits a worker`s employment prospects after an employer leaves. Non-competitive agreements generally prevent the worker from working for certain companies in a specific geographic area for a predetermined period of time.