March 2025

High Swartz | March 21, 2025

Non-Competes in PA - Are They Enforceable

Non-competes in PA and other states have been a hot-button topic of late.

Non-compete agreements intend to prevent employees from working for competitors or starting a similar business. The period after leaving a company ranges from six months to two years.

Although employers use them to protect business interests, their enforceability depends on state laws. That landscape has changed in recent years, notably in healthcare, where new legislation has taken effect.

Are non-competes in PA legal now? We'll answer that question.

What Is a Non-Compete Agreement?

A non-compete prevents employees from working in the same field or area as their old employer for a set amount of time. Employers use these agreements to protect trade secrets, confidential information, and perhaps most importantly, customer relationships.

Non-competes are standard in virtually every industry, some more than others. However, these agreements can significantly impact career mobility.

FTC Ban on Non-Competes

On April 23, 2024, the Federal Trade Commission (FTC) issued a rule attempting to ban most non-compete agreements nationwide. However, a Texas federal court issued a nationwide injunction to block that attempt.

The rule's scope sought to prohibit employers from entering into or enforcing non-compete agreements with:

Employees
Contractors
Interns
Volunteers

The only exceptions were for current non-compete agreements with senior executives or those related to business sales. Section 5 of the FTC Act defines a senior executive as a policy-making role who earns at least $151,164.

The ban was to take effect on September 4, 2024, but encountered a lawsuit by the U.S. Chamber of Commerce. The injunction from the Texas federal court declared the ban unlawful.

The bottom line? The ruling is still pending and under legal review. Consequently, state laws continue to govern the enforceability of non-compete agreements.

Are Non-Competes Enforceable in Pennsylvania?

Can employers enforce a non-compete in PA? Pennsylvania courts enforce non-compete agreements only if they meet these requirements:

Legitimate Business Interest: The employer must prove the agreement protects trade secrets, client relationships, or other business interests.
Reasonable in Scope: The restrictions must be fair in duration and geographic area.
Consideration Given: Employees must receive something in return for signing. Employees must receive additional pay or benefits if an employer introduces the agreement after hiring. Consideration can also apply to a promotion or continued employment.

Can You Work for a Competitor with a Non-Compete in PA?

It depends. If a non-compete is enforceable and reasonable, an employer might restrict you from working for a competitor. However, many non-competes can be contested or ruled unenforceable based on their scope, lack of consideration, or public policy violations.

The most common ways to contest a non-compete include:

The agreement is unreasonable because restrictions on geographic area or time are excessive.
Your employer acted illegally or unethically.
The contract doesn't relate to a legitimate business interest.
A breach of contract by your employer. For instance, if your employer failed to offer appropriate consideration.
You never signed the non-compete.
The agreement violates public policy, preventing you from working in your field.

Consult a contract or employment lawyer if you're unsure.

The Fair Contracting for Health Care Practitioners Act

Pennsylvania Governor Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act 74 on July 17, 2024.

The act limits non-competes for specific healthcare roles in PA:

Nurse practitioners
Medical doctors
Osteopaths
Nurse anesthetists
Physician assistants

This law ensures healthcare providers can continue working without excessive restrictions. It aligns with growing concerns over restrictive covenants in the healthcare industry.

Employers must notify patients when healthcare providers affected by non-compete agreements leave. Businesses should also continue to monitor how these laws evolve to remain compliant.

Alternatives to Non-Competes for Employers

So, if you're an employer, how can you protect your business interests without a non-compete? Here are three options:

Non-Solicitation Agreements: They prevent employees from taking customers or coworkers when they leave.
Confidentiality Agreements: Confidentiality agreements protect trade secrets without restricting employment. Courts may rule a non-compete unenforceable if it is overly broad or lacks legitimate business interest.
Garden Leave: Employees remain on the payroll for a period, delaying their ability to work for a competitor. Learn more about garden leave.

Practical Advice regarding non-competes for Employers and Employees

Navigating non-compete agreements can be challenging for both employers and employees. Employers must ensure their agreements are legally sound and enforceable, and employees must understand their rights before signing or challenging a non-compete.

Here's what both parties should keep in mind:

For Employers: Ensure non-competes are reasonable and offer proper consideration. Healthcare employers must comply with new laws when contracting for healthcare.
For Employees: If you're facing enforcement from an existing employer, understand your rights. If you're unsure, seek legal advice before signing.

Non-Competes in PA – Talk to an Employment Lawyer

Non-compete agreements in Pennsylvania are enforceable only if they meet strict standards. Courts may void or modify agreements that are too restrictive.

The legal landscape is evolving with state law changes and the FTC's rule potentially banning non-competes. Consulting an attorney can help you navigate your options when dealing with a non-compete covenant.

Our contract and employment lawyers help employers draft enforceable agreements and assist employees in challenging unfair non-compete restrictions.

If you own a business or work in Pennsylvania, call our local law offices for legal assistance.

Doylestown Law Office: 215.345.8888
Feasterville-Trevose Law Office: 215.354.1100
Norristown Law Office: 610.275.0700
Wayne Law Office: 610.975.4468

High Swartz | March 20, 2025

Remote Firing - 7 Essentials to Avoid Legal Disputes

Remote workforces create several challenges, including human resources. Managing a team that works remotely requires clear policies, strong communication, and careful handling of employee issues. That becomes particularly vital with remote firing.

Terminating a remote employee isn't as simple as firing someone in an office. Without face-to-face interaction, it can be harder to communicate, collect company equipment, and follow termination processes correctly.

Moreover, remote work isn't going away. Even in 2025, an estimated 22% of the global workforce, or 32.6 million Americans, will work remotely.

How do you fire a remote employee while avoiding legal risks? We'll give you some answers. The best advice is consulting with an employment lawyer near you.

1. Review Contracts and Company Policies First

Companies' first mistake with remote firings is failing to check employee agreements and policies. Start by confirming:

Termination policies
Notice periods
Severance package
Equipment return procedures
Employee contracts

Ignoring these items can lead to legal disputes like wrongful termination claims.

2. Understand Multi-State Legal Requirements with a Remote Firing

One of the central challenges with remote firing is managing legal differences across states. Let's say your company resides in Pennsylvania, which has employment laws. However, a remote worker in Colorado might be subject to different employment laws regarding termination, final pay, and employee rights.

For example, in Pennsylvania, an employer must provide a final paycheck by the next payday. However, Colorado requires you to issue a final paycheck immediately with an involuntary termination. Additionally, Colorado has stricter rules on reimbursing work-related expenses.

Employers failing to comply with these state-specific rules could face legal action or fines. So before firing a remote employee, check:

Final Paycheck Rules

As mentioned, Pennsylvania and Colorado differ in how a final paycheck is delivered. The same is true for California and New York.

Employers must comply with the state laws governing the employee's place of work. Each state has different requirements for final pay, severance, and notice periods. So, ensure you comply with the state laws where the remote employee lives.

Note: You can draft employment contracts, including a choice-of-law clause specifying which state’s laws govern the agreement. However, the clause may not override mandatory state-specific labor protections where the employee works.

Termination Notice Requirements

Some states require advance notice or severance pay. For example, New Jersey's WARN Act says employers with 100 or more workers must give 90 days' notice before layoffs. It also requires a severance.

The federal WARN Act applies to companies with 100 or more full-time employees and requires 60 days' notice for mass layoffs. However, some states, like New Jersey, California, and New York, have their own WARN laws, which may apply to smaller layoffs or require more extended notice periods than federal law.

On the other hand, some states, like Texas, don't mandate advance notice or severance pay. They would only apply if included in an employment contract.

Expense reimbursements

Some states, such as California, Illinois, and Massachusetts, require employers to reimburse necessary work-related expenses regardless of termination status. Failure to do so may result in legal claims for unpaid business expenses.

Again, working with an employment lawyer can minimize your risks of oversights when terminating remote workers.

3. Avoiding Wrongful Termination Claims with Remote Firings

Wrongful termination claims can be costly and damaging to a company’s reputation. Potential claims become even more possible with remote firings. Communication gaps and lack of face-to-face interaction can make it harder to demonstrate fairness.

Employers must ensure that every step of the termination process is legally sound and well-documented to prevent disputes. They must also maintain consistent policies and clear records.

Reduce the risk of a wrongful termination lawsuit by:

Documenting performance problems and past warnings.
Applying the same standards to remote and office workers.
Avoid remote firing based on age, gender, disability, race, or other protected categories.
Be careful if the employee recently complained or requested leave to avoid retaliation claims.

Keeping clear records protects your company if the terminated employee files a claim.

4. Handle Final Pay and Benefits Correctly

We mentioned legal differences between states regarding final paycheck payments. You also must pay attention to items like unused vacation pay or other reimbursements. Otherwise, you risk legal action with a remote firing.

You must calculate and distribute all outstanding payments accurately while communicating any benefits continuation options. Focus on these concerns:

Follow state laws on final paychecks.
Include unused vacation or PTO as some states require payout of unused time off.
Reimburse work expenses before firing the remote worker.
Inform them of COBRA or other benefits options.
Offering severance may help avoid legal risks.

If multiple employees are terminated immediately, check if the federal WARN Act or state laws require advance notice.

Here’s something else to keep in mind. Some remote workers are misclassified as independent contractors. You must ensure you handle termination pay correctly based on worker classification.

Misclassifying remote workers as independent contractors instead of employees can lead to wage law violations, unpaid tax liabilities, and lawsuits. Employers should ensure compliance with IRS guidelines and state-specific employment laws before termination. Owing to some of these complexities, checking with an experienced employment lawyer is advised.

5. Secure Company Equipment and Data

With in-office terminations, company property can be collected immediately. Remote firings make it harder to retrieve equipment and secure sensitive data.

You risk data breaches, security threats, or financial losses from unreturned assets if handled poorly. Follow these steps to secure your property and remove access to company information:

Work with IT to revoke email, cloud storage, and company software access. Do so immediately.
Provide prepaid shipping labels to return company equipment like laptops or phones.
Securely remove company data from personal devices.
Remind employees about confidentiality to ensure they understand their obligations after departure.

If an employee uses a personal device, ensure company data is securely removed without violating privacy laws. Employers should establish Bring Your Own Device (BYOD) policies to clarify acceptable security measures before termination.

Some states allow deductions from a final paycheck for unreturned equipment. Company policies should explicitly state this.

6. Conduct the Termination Meeting Professionally

In remote firings, a poorly handled termination can lead to confusion, resentment, or legal issues. Remember that body language and tone can be more challenging, if not impossible, to interpret over a video call.

Structure the remote firing by properly preparing in advance. Here are some steps for conducting the exit:

A termination meeting should be face-to-face, not over email or chat. So, use a video call.
Choose the right day and time for the remote firing. For instance, mid-week mornings are good because employees can start their job search sooner.
Have an HR representative present to document the meeting and answer questions.
Follow a clear script to stick to key points to avoid confusion.
Allow time for questions to clarify details.
Provide written confirmation by sending an official termination letter after the meeting.

Consider offering outplacement support to help ease the transition for terminated employees, which can also reduce the likelihood of wrongful termination claims.

Handling the termination professionally helps the employee leave on better terms and reduces legal risks.

7. Manage Social Media After the Remote Firing

How you communicate the termination can impact workplace morale, trust, and legal risks. A poorly handled announcement can cause confusion, speculation, or resentment among remaining employees. Be transparent while maintaining professionalism and privacy.

Additionally, social media poses unique challenges. Terminated employees may express their frustrations outwardly. Take proactive steps to manage internal and external messaging using these tactics:

Provide a neutral explanation stating that the employee has left the company.
Be consistent when sharing details about the fired employee.
Train managers on how to talk to your employees. Ensure they don't share unnecessary details about the termination.

Employers should monitor social media for confidentiality breaches but avoid direct retaliation against a terminated employee’s online activity, as this could lead to wrongful termination or retaliation claims in certain states. Consult an employment before taking action against a terminated employee’s online activity.

Some companies create templates for announcements to keep messaging consistent.

Avoid Wrongful Termination Claims with Remote Firings

Remote firing requires careful planning. Employers must check contracts, follow state laws, document performance issues, handle final pay correctly, and secure company equipment. The process can seem overwhelming.

When in doubt, it's a good idea to get professional help. Our employment lawyers consult with business clients throughout Pennsylvania, focusing on Bucks, Delaware, and Montgomery counties. They're familiar with state and federal employment laws to save you time and hassle with remote firing.

Call any one of our local law offices to ensure you avoid wrongful termination claims.

Doylestown Law Office: 215.345.8888
Feasterville-Trevose Law Office: 215.354.1100
Norristown Law Office: 610.275.0700
Wayne Law Office: 610.975.4468

Kevin Cornish | March 12, 2025

Storage Unit Laws

Owning a self-storage facility in Pennsylvania comes with a unique set of legal obligations. PA’s Self-Service Storage Facility Act outlines how facility owners can protect their investment, enforce rent payments, and legally handle tenant defaults.

Whether you operate a single location or manage multiple storage facilities, understanding self-storage laws isn’t optional. Otherwise, you risk costly legal disputes and can impact your bottom line.

This guide explains the key rules you must follow, the rights you have as an owner, and common mistakes that can lead to lawsuits.

Don’t let a missed deadline or incomplete notice cost you. Contact High Swartz’s commercial property team today to protect your rights as a storage facility owner.

Contact our Business Law team today to start the conversation.

Storage Unit Laws - Key Takeaways

Pennsylvania’s Self-Service Storage Facility Act governs lien rights, notice requirements, and property sales for self-storage owners.
Owners must follow strict timelines before denying access or selling a tenant’s property.
A clear, well-drafted rental agreement is your first defense against disputes.
Prohibited uses, including living in a storage unit, must be enforced to avoid legal penalties.

Rising Demand Creates a Greater Risk for Storage Unit Owners

The self-storage industry is thriving. Nationally, between 10% and 11% of households currently rent storage units, according to the 2023 SpareFoot Storage Industry Statistics Report.

SelfStorage.com data from 2023 shows Pennsylvania ranks among the top 10 states for total square footage, a sign of the industry’s strong presence in our region.

Rising demand means more opportunity, but also more risk in the form of late payments, abandoned property, and misuse of units.

“Facility owners should think of the Self-Service Storage Facility Act as both a shield and a sword,” says Kevin Cornish, commercial litigator and retail defense attorney at High Swartz LLP. “It protects your right to collect unpaid rent, but it also sets strict procedural requirements that you must follow to avoid liability.”

What is the Self-Service Storage Facility Act?

Before you can protect your rights as a storage facility owner, you need to understand the legal terms defined by Pennsylvania’s self-storage laws.

Pennsylvania’s self-storage laws define:

Facility: Any property used for renting or leasing individual storage space to store and remove personal property, but not for residential purposes.
Owner: A person authorized to manage the facility, receive rent, and enforce the lease.
Occupant: A person entitled to use a storage space under a rental agreement, including an occupant in a subsequent written notice if the lease has been updated.

So whether you own a single location in Philadelphia or manage multiple facilities across the state, you have lien rights as well as obligations under the law. Although the law applies statewide in Pennsylvania, enforcement may vary by county.

How Can Storage Unit Owners Enforce Lien Rights Under PA Law?

When a tenant stops paying rent, the law gives you a lien on all stored property for the amount owed. That lien attaches from the date the property is placed in storage.
However, the law sets a strict timeline and notice process:

The tenant must be in default for at least 30 days before you take enforcement action.
As an owner, you must provide a subsequent written notice by certified mail or personal delivery service to the occupant’s last known address.
That notice must include:
1. An itemized list of charges
2. Payment deadline (minimum 30 days)
3. Statement of lien rights
4. Owner’s name, street address, and telephone number
5. Bold warning about sale or restricted access

Cornish notes, “If even one required element is missing from your notice, you could lose your right to enforce the lien through a public sale.”

What Can a Storage Unit Owner Do if a Tenant Stops Paying?

In Pennsylvania, if the occupant fails to pay within the notice period, a storage unit owner can enforce lien rights. However, they must abide by the Act’s detailed sale rules. These rules protect both your rights and the occupant’s property value:

Deny the occupant access to the unit.
Advertise the sale twice in a newspaper serving the area, or post notices in six conspicuous public places if no paper exists.
Hold the sale at the facility or the nearest suitable location.
Allow redemption of the property at any time before sale if the occupant pays the lien and expenses.
Provide a receipt bill of lading to the purchaser, ensuring transfer of ownership without prior claims.
Return any surplus proceeds within six months or report them to the state.

Can a Storage Unit Be Used as a Residence?

Following self-storage laws isn’t just about collecting unpaid rent. It’s also about avoiding costly liability.

One of the most critical rules is the prohibition on using your facility for residential purposes. You must ensure no one lives or sleeps in a unit, both for safety and to comply with zoning regulations.

Owners also need to document any removal of personal property, maintain records of all notices sent, and confirm all sales comply with the advertising and timing requirements of the Act.

Doing so reduces exposure to claims of wrongful sale, breach of contract, or unlawful eviction.

How High Swartz LLP Helps Storage Facility Owners

Our attorneys routinely represent owners before County Courts of Common Pleas and other local jurisdictions in Pennsylvania and New Jersey. We help facility owners protect their rights and stay compliant.

From drafting airtight rental agreements to representation in lien disputes, High Swartz assists storage unit owners with:
• Enforcing self-storage lien laws
• Managing occupant defaults in compliance with the Act
• Defending against wrongful sale claims

Contact Kevin Cornish with our commercial litigation team today to protect your rights as a storage facility owner.

Call our Norristown law office: 610.275.0700. With over a century of serving Pennsylvania businesses, High Swartz has the experience to protect your investment and your peace of mind.