Non- compete Contract clauses

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Non- compete Contract clauses

Hello,
I would like to bring a Chiropractor into my practice. He was previously working at a facility that was 14 miles away from my location. He spent 12 years there and they recently laid him off due to financial decline in their office. His contract stipulated a 15 mile non compete for 3 years. My question is, since the employee was laid off- did not leave on his own accord, is he still bound under this agreement since he was considered not valuable enough to keep on board. I am in Pennsylvania- Westmoreland county..

Asked on June 27, 2016 under Employment Labor Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

A non-compete is a contract, and like any contract, is governed by its precise terms; therefore, for a definitive answer, you need an attorney to review *this* non-compete agreement. That said, as a general matter, a non-compete is not enforceable against an employee if the employee is laid off or terminated (they apply, rather, when the employee voluntarily leaves) unless the employee received some "consideration," or thing of value, for the non-compete other than his/her employment. That means that if the employee were given some payment, bonus, stock options, tuition reimbursement, etc. in exchange for signing the non-compete (something beyond having his/her job), the non-compete could still be enforced even if the employee were laid off or terminated.


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