Legal Question in Business Law in Pennsylvania

Non-Compete Agreement

I recently quit my internship because of contraints on my schedule. I handed my boss a written resignation letter and spoke with him then and 2 days after. He sounded somber about my departure but never said anything about legalities. This is a section of the contract I signed before I was employed:

(j) If Employee wishes to terminate this internship or employment for any reason or cancel this contract agreement prior to the end of the internship/employment term, than Employee must first notify the Company in writing at least ten (10) business days prior. A verbal request will not be honored. Termination is not automatically granted. If Company does not grant early termination, of if there is early cancellation of this contract for any reason, than Employee will be required to pay an early termination fee of $300.

This fee is intended to compensate the Company and or its representative for the time and expense of having to find a suitable qualified replacement for Employee. Termination is at the discretion of Company.

Hes saying hes not granting me termination but never mentioned this when we spoke. Is there anyway out of paying him?


Asked on 9/27/07, 4:17 pm

3 Answers from Attorneys
Robert Davies The Davies Law Firm, P.A.

Re: Non-Compete Agreement

that is just completely bizzare. I would not pay it.

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Answered on 9/27/07, 4:21 pm
Jef Henninger, Esq Law Offices of Jef Henninger, Esq.

Re: Non-Compete Agreement

I agree with Mr. Davies, this is crazy.

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Answered on 9/27/07, 4:23 pm
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Non-Compete Agreement

You asked about an employment termination.

Employment in almost every state is at-will. Even with an employment agreement it is difficult to get around at-will statutes.

I have never seen a direct employer have a termination fee that demanded payment by an employee for leaving. There are circumstances where an separation fee might be payable, such as when an employer hires a temp employee (directly) from a temp agency. But even then the fee is a finders fee and is paid by the hiring employer.

The situation you describe sounds like the employer will refuse to let you resign unless you pay the fee. What does the employer expect, slavery?

Don't pay the fee and see what happens. If anything happens, or if they give a negative reference, hire an attorney and attack.

The employer obviously did not have benefit of counsel when drafting their employment documents.

Regards,

Roger

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Answered on 9/28/07, 10:44 am


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