Legal Question in Employment Law in Pennsylvania
Non-compete agreement validity?
After working for a company for over 10 years, I was asked (and agreed) to sign a non-compete agreement. A few weeks ago my employment was terminated for economic reasons. My unemployment claim was not contested and I received a severance package.
I was not given any consideration for signing the non-compete agreement. Scope = 1 year, worldwide.
I'd like to start a company which would compete with my former employer. Do any of above facts (terminantion, geographic scope and lack of consideration) invalidate the agreement?
1 Answer from Attorneys
Re: Non-compete agreement validity?
Under Pennsylvania law a non-compete agreement must be signed at the inception of employment or in connection with a significant change in the employee's responsibilities in order to be valid. If your job did not change at the time you signed the agreement it is probably unenforceable.
Also the time and geographic scope of the agreement must be deemed "reasonable" in order to be enforceable. Whether a particular agreement is "reasonable" depends on the nature of the business and the employee's responsibilities and varies from case to case.
You should also know that it is very difficult to enforce an agreement against an employee who has been involutarily terminated. You should have you situation reviewed by an attorney familiar with employemnt law in order to learn how these factors might aply to your situation.
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