Non-Compete Agreements 

Helping Businesses Grow For Over 25 Years

Philadelphia Pennsylvania Non-Compete Agreements Attorneys

You have spent hours to train your employees. How do you protect yourself from those employees using that information to compete against you? A non-compete agreement, drafted appropriately, can protect your business from employees using or sharing your confidential and proprietary information with your competitors. While the courts in general have not looked favorably on non-competes, they are more likely to be enforceable if they include reasonable terms and conditions. At the Law Offices of Nancy L. Lanard, P.C., our attorneys advise employers in avoiding problems that could create liability and legal difficulties later.

For more information regarding non-compete agreements and how we can help protect your company, contact the business law attorneys at the Law Offices of Nancy L. Lanard, P.C. today.

Non-Competes and Enforceability

A non-compete agreement, written properly, can protect your business from an employee who wants to join a competitor or provide proprietary or confidential information to a competitor. This can effectively preserve your client base and protect your business, provided it is enforceable. Pennsylvania law typically enforces non-compete agreements that meet the following criteria:

1. Protects a legitimate business interest
2. Does not deprive an employee of a right to make a living
3. Does not impose an unreasonable geographical limitation on an employee
4. Does not remain in effect for an unreasonable amount of time

When an Employee is asked to Sign a Non-Compete . . .

When is the right time to have your employees sign a non-compete agreement? Should all employees be asked to sign a non-compete agreement? Employees who do not have an essential function in the company typically should not be asked to sign non-competes since it is difficult to establish a legitimate business purpose in doing so and may prevent the individual from being able to make a living..

Additionally, employers may ask an employee to sign a non-compete after he or she has already been working at a company for months or even years. A non-compete, like any contract, is not enforceable without offering any new compensation or benefit to the employee for signing it. It is important to remember enforceability will depend in part on whether or not a restrictive covenant serves an essential or important business interest for the employer and whether some sort of compensation (financial or other) has been given.

. . . Consideration Should be Offered

As an example, asking a Chief Financial Officer (CFO) to sign a non-compete is different than asking a secretary to sign a non-compete; the former can leave the job and find non-competing employment and is privy to important internal information whereas the latter, in most cases, is not necessary. If an employee is asked to sign a non-compete after they have started work at a company, some sort of compensation or benefit ("consideration" in legal terminology) should be offered.

Since non-competes may impact an employee's ability to leave for a more lucrative position, an employer should provide a pay raise, additional stock options, more vacation, or other incentive to offset the restrictions of a non-compete agreement. In cases where an employee is presented with a non-compete prior to his or her first day of work, the job itself is usually considered adequate "consideration" by the courts.

Questions? Contact the Law Offices Of Nancy L. Lanard, P.C. Today

Approachable and accessible, our lawyers have helped numerous companies navigate the murky waters of non-compete agreements. We understand non-compete laws and have the resources needed to help you avoid costly litigation and future legal difficulties. To discuss your situation, contact the non-compete agreement attorneys at the Law Offices of Nancy L. Lanard, P.C. today.