Non-Compete Agreement Pennsylvania
If you violate a non-competition clause and your employer chooses to seek compensation in court, there are ultimately two outcomes where the non-competition clause is applicable or the non-competition clause is not enforceable. For example, in the case of Insulation Corporation of America v. Brobston, the Pennsylvania Superior Court ruled against the employer in a non-compete clause. In this case, Brobston was a salesman who had access to confidential business information on insulation Corporation of America. The company fired him for poor performance, including his refusal to make business trips and not act in the best interests of the company. These non-competition clauses are intended to protect an employer against unfair competition. But if the employer uses it to gain an unfair advantage or to try to eliminate competition, it should not be taxed. The agreement must also be adapted in time and scope. The scope could be limited to certain customers or a given region, but should not be at the federal level. There are several principles that have developed within the framework of Pennsylvania jurisprudence in order to determine whether non-compete/restrictive agreements are applicable. Agreements are not always enforceable. The courts continue to determine when such agreements are valid. No-debauchery agreements are intended to prevent former employees from taking the client or employees of an employer as the former employee`s new employer.
There are two types of no-pocher agreements. Recruitment bans prohibit former employees from coming into contact with the employer`s clients. No-pocher agreements prohibit former employees from inviting former co-workers to leave the employer and join a new employer. In the absence of a no-poofing agreement, a worker is usually free to leave an employer and recruit the former employer`s clients and hire the employer`s employees. In most cases, your agreement is based on geography and time, which means you won`t be able to work for a competitor at a certain geographical distance, and the clause is valid for a certain period of time after you leave your current job. For example, a non-compete clause may mean that you cannot work for a competitor in the same state for up to a year after you leave your current job. In late 2017, Pennsylvania lawmakers proposed a law to ban competition bans.