Pennsylvania Non-Compete Agreements

A Pennsylvania non-compete is enforceable when it is (1) ancillary to employment, (2) supported by adequate consideration, and (3) reasonablein duration, geographic scope, and the activity restricted — and no broader than needed to protect a legitimate business interest. Courts may "blue-pencil" an overbroad covenant.

In Socko v. Mid-Atlantic Systems (Pa. 2015), the Pennsylvania Supreme Court held that continued employment is not sufficient consideration for a non-compete signed after hire — the employee needs something new of value (a raise, bonus, promotion, etc.). The Uniform Written Obligations Act does not cure a lack of consideration. Get the covenant signed at hire, or pair a later one with real consideration.

The Fair Contracting for Health Care Practitioners Act (Act 74 of 2024, effective Jan 1, 2025) makes most non-competes longer than one year unenforceable for health-care practitioners(physicians, CRNPs, PAs, etc.) and adds patient-notice duties. Treat health-care covenants separately.

Tie the restriction to a protectable interest (confidential information, customer relationships, goodwill), keep duration/geography narrow, and document the consideration. Overbroad covenants invite litigation even where the concept is allowed.