Many different successful professionals must sign noncompete agreements as a condition of employment. Businesses limit their ability to start a competing business or take a job with a local competitor after quitting or losing their job.
Noncompete agreements affect an individual’s ability to support themselves and their family. Professionals who have invested in their education and committed to their careers may feel frustrated by the prospect of leaving the area or working outside of their chosen industry while subject to a noncompete agreement.
How long can employers potentially enforce the terms of a noncompete agreement in Pennsylvania?
The law limits the duration of noncompetes
Pennsylvania imposes multiple limitations on noncompete agreements. One of the most important involves limiting how long a business can take a former worker to court over their entrepreneurial endeavors or new employment arrangements.
For the agreement to be valid and enforceable, there should be appropriate limitations on how long the employer can demand that the worker avoid direct competition. Much of the time, Pennsylvania noncompete agreements only remain in effect for one year.
As a general rule, agreements that last much longer than that are likely subject to scrutiny during enforcement litigation. Noncompete agreements that remain in effect for more than two years after a worker’s employment ends may not be enforceable in civil court.
Professionals preparing to leave a job, start a business or accept a job offer may need to review an employment contract with a skilled legal team to determine if they could be at risk of a lawsuit. Evaluating a noncompete agreement with an attorney can help professionals understand how long the document restricts their options and if the courts are likely to view it as a valid agreement.
