Enforcement of non-compete in PA
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Enforcement of non-compete in PA
I have an employee who recently was hired away by a competitor. Ours is a small
niche market and as such I protect myself from training my competition by having
new hires sign a non-compete agreement. Our lawyer seems to feel that all the
ingredients for enforcement are in place. The employee signed the agreement at
the date of inception of employment two and a half years ago. Our agreementit
dictates a set time period of two years and also dictates a geographical radius
of 50 miles. I am just seeking a second opinion from someone else before we
pursue enforcement as I realize it will be costly and am hoping for a favorable
outcome. We are located in Berks County, PA.
Asked on July 22, 2016 under Employment Labor Law, Pennsylvania
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Although it is not possible to predict the outcome of any particular case, I agree with your attorney that you have a good case for enforcement of the non-competitive agreement because the agreement is reasonable in terms of duration (2 years) and geographic proximity (50 miles) considering that you have a "small niche market". A court will consider the reasonableness of the terms in the non-competitive agreement in determining whether or not it is enforceable.
A court can modify the terms of a non-competitive agreement by limiting its scope, geographic proximity, and duration without invalidating the entire agreement.
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