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Non-Compete Agreements › PA Supreme Court

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Fox Rothschild LLP

Reappraisal Of Anti-Poaching And Non-Competes In Franchising (Part 2 Of 2)

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So yesterday I discussed some background related to anti-poaching and non-compete law. Today, I explain why the decision in Pittsburgh Logistics Systems provides a helpful analogue to franchising...more

Fox Rothschild LLP

Reappraisal Of Anti-Poaching And Non-Competes In Franchising (Part 1 Of 2)

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Let’s review the status of activity restrictions in franchise agreements. Do they serve the purpose intended? Are they enforceable? Are they worth it? The Pennsylvania Supreme Court’s decision in Pittsburgh Logistics Systems...more

FordHarrison

Non-Compete News: Open Season? Pennsylvania Supreme Court Invalidates No-Poach Provision Between Businesses

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In a recent decision and case of first impression, Pennsylvania’s Supreme Court unanimously affirmed that a no-hire of employees provision between a business and its vendor was unenforceable because it constituted an...more

Fisher Phillips

Supreme Court of Pennsylvania Provides A 7-Step Roadmap to Employers While Striking Down No-Hire Agreement

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In a decision resolving a dispute that has been pending for nearly five years, the Supreme Court of Pennsylvania just voided a no-hire provision entered into by two companies that bound one of them from hiring former...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Pennsylvania Supreme Court Addresses Consideration for Noncompetes

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In Pennsylvania, noncompetition agreements must, among other things, be supported by adequate consideration to be enforceable. It is well established that an initial offer of employment constitutes adequate consideration....more

Fisher Phillips

Pennsylvania Supreme Court Reminds Employers To Get Employee Signatures On Covenants Before They Start Work

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The recruitment and onboarding process can be fast-paced as employers and recruits go back and forth on salary, title, benefits, and more. Sometimes an impending deadline pushes the parties to move quickly, such as the start...more

FordHarrison

Non-Compete News: Pennsylvania Adopts New Standard for Enforcing a Non-Compete Agreement Signed After the Start of the Employment...

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Executive Summary: Rejecting a bright-line test, Pennsylvania’s Supreme Court ruled last week that a covenant not to compete executed by an employee after the first day of employment can be enforceable — even though no new...more

Faegre Drinker Biddle & Reath LLP

With Pennsylvania Non-Competes, As in Life, Timing is Everything

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In Pennsylvania, it has long been known that waiting until after the start of employment to have an employee sign a non-competition agreement comes with the real risk that the agreement will be unenforceable for lack of...more

Nutter McClennen & Fish LLP

Pennsylvania Supreme Court Rejects Continued Employment as Sufficient Consideration for Non-Compete

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The Pennsylvania Supreme Court recently held in Socko v. Mid-Atlantic Systems of CPA, Inc. that a non-compete is enforceable only if a current employee receives new consideration beyond continued employment. The Court held...more

McNees Wallace & Nurick LLC

PA Supreme Court Confirms “Magic” Language Cannot Save Otherwise Unenforceable Non-Compete Agreement

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The Pennsylvania Supreme Court recently re-affirmed the principle that in order to have an enforceable non-compete agreement in Pennsylvania, the agreement must be supported by adequate consideration and that a statement...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Pennsylvania Still Requires Separate Consideration for Restrictive Covenant Agreements

Ogletree, Deakins, Nash, Smoak & Stewart,... on

In a much anticipated decision released on November 18, 2015, the Supreme Court of Pennsylvania closed the door—if it was ever open—on any arguments doing away with the separate consideration required for restrictive covenant...more

Seyfarth Shaw LLP

Pennsylvania’s Highest Court Rules Continuing Employment Insufficient Consideration for Non-Compete

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Do you have workers in Pennsylvania? If so, do you ask them to sign non-competes after they have already been employed with your company for some appreciable time? If you do, you may be obligated to provide them with...more

Seyfarth Shaw LLP

Pennsylvania Supreme Court Rules That Continued Employment Is Not Sufficient Consideration for Non-Competes Entered Into After the...

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In a landmark ruling of first impression, the Pennsylvania Supreme Court recently held that an employer’s non-competition covenant, which included the employee’s pledge not to challenge the covenant for inadequate...more

Littler

Pennsylvania Supreme Court Holds Uniform Written Obligations Act Does Not Allow Employer To Enforce Noncompete Unsupported By...

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In Socko v. Mid-Atlantic Systems of CPA, Inc. (No. J-40-2015), the Pennsylvania Supreme Court ruled on an issue of first impression: whether the state’s Uniform Written Obligations Act (“UWOA”) allows employers to enforce a...more

Fisher Phillips

Pennsylvania Supreme Court Finds That UWOA Language Does Not Waive Right to Challenge Adequacy of Consideration for Restrictive...

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On November 18, 2015, in a highly anticipated decision, the Pennsylvania Supreme Court held that employers could not use the language set forth in Pennsylvania’s Uniform Written Obligations Act (“UWOA”) to avoid providing...more

Saul Ewing Arnstein & Lehr LLP

Pennsylvania Supreme Court Rules that Words Alone Not Sufficient to Support Non-Compete Covenant

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Earlier this week, the Pennsylvania Supreme Court rejected a challenge to the longstanding requirement that post-employment restrictive covenants must be supported by actual consideration to be enforceable under Pennsylvania...more

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