What Are My Rights if I Am Asked to Sign a Non-Compete Agreement in PA?

If you’re presented with a non-compete agreement in Pennsylvania, it’s crucial to understand your legal position before signing. Pennsylvania law treats these agreements with scrutiny—and you may have more rights than you realize.

Enforceability Requires a Legitimate Business Interest

Pennsylvania courts will only enforce non-compete agreements if they protect a legitimate business interest—such as trade secrets, customer relationships, or unique training—rather than merely suppressing competition.

Reasonableness in Scope, Duration, and Geography

A valid non-compete must be reasonable in three key respects:

• Duration: It should define a clear endpoint and not be overly long (e.g., two years is more reasonable than an indefinite period).
• Geographic scope: Restrictions must be limited to actual areas relevant to the employer’s business.
• Scope of activity: Limitations must be directly related to the employer’s operations—not broad or overly vague.

Consideration: A Must for Enforceability

If the agreement is introduced after you’ve already started working, Pennsylvania law requires new consideration, such as a promotion, bonus, or additional benefits, for it to be enforceable. Continued employment alone is not enough.

Special Rules for Healthcare Practitioners

Starting January 1, 2025, under Pennsylvania’s Fair Contracting for Health Care Practitioners Act, non-competes for healthcare professionals have extra limitations:

• Any non-compete longer than one year is void.
• One-year (or shorter) non-competes may be enforced only if the practitioner voluntarily resigns.
• If terminated by the employer, regardless of reason, even one-year clauses are unenforceable.
• Employers must also notify patients within 90 days when a practitioner leaves, explaining the transfer of records and continuity of care.

What You Can Do to Protect Yourself

1. Review the agreement closely—look at its length, location restrictions, and activity limitations.
2. Assess whether you’re receiving new consideration if the agreement is post-hire.
3. Familiarize yourself with your profession’s specific regulations, particularly in healthcare.
4. Speak with an employment attorney; Pennsylvania’s enforceability tests are complex and fact-specific.

Why Consulting Morcom Law Matters

Pennsylvania’s rules on non-competes can be nuanced. Whether you’re an employee unsure of your rights or an employer aiming to draft enforceable agreements, you’ll benefit from experienced legal guidance. If you’re facing a non-compete—or wanting to ensure it’s fair and enforceable—contact Morcom Law today. Our Hershey-based employment attorneys are ready to walk you through your rights and help you make informed decisions.