Legal Question in Business Law in Pennsylvania

Non-Compete Agreement Enforceable if let go from company

My husband was recently let go from a company he worked with for almost 2 years. There was no warning of it and it was a complete shock to his co-workers, supervisor and us. When he was hired - he signed a 5 year non-compete agreement. He worked for an industrial supply/bearing company. This is his field... we do not want to move, and they have multiple branches... his former company sent him a little reminding him that he signed the 5 year agreement that we do not have a copy of. If he can't work in his field near our home - we'll have to move or he'll be forced to work at walmart or something. This is only thing he is really good at and his job performance was excellent. The company is having financial problems and they let two people go from his branch. Is this non-compete agreement enforceable? If it is - what can we do to beat it so my husband can work again?


Asked on 2/07/06, 8:54 am

2 Answers from Attorneys

Re: Non-Compete Agreement Enforceable if let go from company

Non-compete clauses can be made a condition of initial employment. If one is created later, you must be given something, such as a raise, in exchange; it cannot simply be forced on you.

Whether the terms are enforceable is a fact question in each case. In general, non-compete clauses must be reasonably limited in time and geographic scope. An attorney who has handled this type of issue before can compare your situation to the existing caselaw.

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Answered on 2/07/06, 9:16 am
Edward Fronczkiewicz, Jr. Miksch and Fronczkiewicz

Re: Non-Compete Agreement Enforceable if let go from company

I agree with my colleague, whether a non-compete agreement is enforceable or not is a factual question.

Among other things, the court will look at the reasonableness of the agreement in terms of geography and duration.

On its face, five years seems a bit excessive and the employer is going to have to put forth a compelling reason for enforcing the non-compete for that long of a duration.

You should immediately have the agreement reviewed by an attorney (either myself or another attorney) familiar with the legal issues surrounding non-competes.

Please feel free to contact me via email, [email protected], or click on my "Attorney Profile Page" for my other contact info.

Regards.

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Answered on 2/07/06, 9:52 am


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