Non-Compete Agreements in Pittsburgh PA
A Non-Compete Agreement is a document that restricts the activities of the party signing it. A Non-Compete Agreement takes the form of a contract, and must meet all legal requirements of a contract, most significantly the consideration element. The Non-Compete Agreement is most often found in either Employment Agreements or regarding the sale of a business.
A Non-Compete Agreement in the employment field is most often found for professional or skilled workers. The Agreement will provide protection for the employer so that the employee will not partake in a restricted activity upon termination of his employ. The restricted activity may be the solicitation of clients, customers or business, the solicitation of prospective clients, customers or business, the solicitation of other employees, working for a direct competitor, or merely competing generally in the same type of business as the employer.
In Pennsylvania, Non-Compete Agreements must be fairly limited in both time and geography. For instance, a large franchise store such as Wal-Mart could prevent an employee who signed a Non-Compete Agreement from working in the same field within perhaps 100 miles of the Pittsburgh based Wal-Mart, and for perhaps for a period of two years, the Agreement likely would be found satisfactory. If Wal-Mart attempted to prevent the employee from working within a 100 mile radius of any Wal-Mart store in the world, for a period of 25 years, the agreement likely would fail.
A Non-Compete Agreement in the sale of a business would provide similar protections for the buyer. The Non-Compete Agreement in this instance would likely prevent the seller from soliciting business, customers, clients or employees of the sold business. It would also likely prevent the seller from working for any competitors or opening another business that is similar to the sold business.
Please feel free to contact me with any questions regarding Non-Compete Agreements in PA. To set up an initial consultation, contact my office at 412-823-8003 or send an email to Attorney Greg Artim