Some courts have issued recent rulings favorable to employees in matters concerning non-compete agreements. For example, courts in Pennsylvania and other states have recently held that employers must provide an extra incentive, also known as “consideration,” to employees for a non-compete agreement to be enforced, where such agreement is presented at some time after employment has commenced. The Pennsylvania Superior Court found that there must be an actual benefit to the employee, in addition to employment, in order to later enforce the non-compete agreement. The precise amount of consideration that may be deemed enforceable is not clear. However, a court in North Carolina court found that a payment of $100 was adequate consideration for the employee to sign an enforceable mid-employment non-compete agreement.
These rulings and others may indicate a broader shift toward court decisions that limit employers’ ability to enforce non-compete agreements that are not offered at the commencement of employment without consideration. Employees should also be aware of the choice of law provision in their agreements, since that may have an impact on the legality of their non-compete. These provisions may reference the applicable state law that should be applied and may restrict employees’ rights to bring court challenges in only specific courts or geographic areas.
Philadelphia Employment Lawyers at Sidkoff, Pincus & Green, P.C. Offer Counsel on Non-compete Agreements
Employees who have entered into or are considering entering into a non-compete agreement should know their rights and whether the agreement would likely stand up in court. Call Philadelphia employment lawyers at Sidkoff, Pinus & Green, P.C. today at 215-574-0600, or contact us online to see how we can protect your rights related to your non-compete agreement with your employer.