Understanding Non-Compete Agreements

As part of an employment contract, employers commonly require employees to sign non-compete agreements, which prohibit them from working for a competitor, and non-solicitation agreements, which prohibit them from soliciting the employer’s customers, when the employee leaves his/her job.

But are employees still bound by those prohibitions once the employment contract expires and the employee stays on as an employee at-will? A Pennsylvania appellate court has just reaffirmed that it is possible for a non-solicitation covenant to survive the end of a term of an employment contract when the employee then stays on as an at-will employee. That decision also reaffirms the necessity for both parties to a contract to be very mindful of the terms of it.

Lawyers at Leonard Sciolla have considerable experience preparing and negotiating contracts and are available to assist clients with a variety of agreements. Call partners John Leonard, Keith Leonard, or Paul Schultz at (215) 567-1530 for Pennsylvania matters or (856) 273-6679 for New Jersey matters. All attorneys can also be reached through our website.

Published May 5, 2017