Practice Area: Employment Law

Updated April 2025

What Pennsylvania Law Says About Reviewing Personnel Files

In Pennsylvania, only current employees have the legal right to inspect their personnel files. This rule stems from a clear-cut decision by the Pennsylvania Supreme Court in Thomas Jefferson University Hospitals, Inc. v. Pennsylvania Department of Labor and Industry, 162 A.3d 384 (Pa. 2017). The ruling resolved long-standing uncertainty by affirming that the Personnel Files Act applies solely to individuals who remain actively employed at the time of their request.

Who This Affects

This rule applies to all private-sector employers in Pennsylvania. Whether you run a small family business in Norristown or manage HR for a large healthcare organization in Philadelphia, your company must comply. For employees, this means that once your employment ends—whether by resignation, layoff, or termination—you lose your legal right to access your personnel file under the Act.

Key Facts: Pennsylvania Personnel Files Act

• Who can review a file?
  Only current employees, those on leave, or those laid off with rights to reinstatement.
• What’s included in a “personnel file”?
  Any document used to determine qualifications for employment, promotion, compensation, discipline, or termination.
• Who enforces the law?
  The Pennsylvania Department of Labor & Industry (L&I) handles enforcement.
• When can employees inspect their files?
  Once per calendar year upon written request, during regular business hours, at the worksite or mutually agreed location.

How the Law Has Evolved

For nearly 20 years, ambiguity surrounded this law because of a 1996 ruling in Beitman v. Department of Labor and Industry, 675 A.2d 1300 (Pa. Cmwlth. 1996). In that case, the court denied a terminated employee’s request to view her file two years after dismissal. However, it left open a gray area—suggesting that recently terminated employees might access files within a “reasonable time” after separation. That vague suggestion wasn’t binding law, but it led to confusion among employers, employees, and regulators.

To address the uncertainty, the Department of Labor & Industry informally adopted a 30-day window post-termination during which file access might still be allowed. But when a former hospital employee in Philadelphia attempted to view her file one week after termination in 2013, the issue finally reached the state’s highest court.

The Pennsylvania Supreme Court reversed lower court rulings and clarified the law: “Employee” means someone currently employed—no exceptions, no grace period.

Why This Matters for Employers and Employees

For Employers:

• Deny file access requests from former employees—regardless of how recently employment ended.
• Update internal policies and train HR staff to respond appropriately.
• Document all personnel file access requests to ensure compliance with state law.

For Employees:

• Act promptly if you want to inspect your personnel file.
  If you suspect an upcoming termination or feel your employment may end soon, submit your written request while still employed.
• Know your rights don’t extend past your final day—unless you are on leave or subject to recall after a layoff.

Real-World Questions We Hear Often:

• "My employee quit but still has unused vacation time. Can they access their file until PTO runs out?"
  No. Once an employee’s active service ends, their right to inspect the file ends—even if they remain on payroll due to accrued leave.
• "Do remote workers or hybrid employees still qualify?"
  Yes. As long as the worker maintains active employment status, location doesn’t limit their access under the Act.
• "Can I email the file instead of meeting in person?"
  The law encourages access at the workplace or another agreed-upon location, but email delivery can be appropriate with mutual consent.

Why Choose High Swartz for Employment Law in Pennsylvania?

At High Swartz LLP, we’ve advised Pennsylvania employers and employees on workplace legal issues for decades. From our offices in Norristown, Doylestown, Wayne, and Feasterville, we counsel clients across Montgomery, Bucks, Chester, Delaware, and Philadelphia counties.

Our employment attorneys bring years of hands-on experience navigating state-specific labor laws. We frequently advise:

• HR managers at mid-sized companies
• Nonprofit directors managing staffing transitions
• Business owners facing claims related to file access

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This blog post offers general legal information and should not be interpreted as legal advice. For guidance on your specific circumstances, please consult an attorney.

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:

1. Legitimate Business Interest: The employer must prove the agreement protects trade secrets, client relationships, or other business interests.
2. Reasonable in Scope: The restrictions must be fair in duration and geographic area.
3. 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:

1. The agreement is unreasonable because restrictions on geographic area or time are excessive.
2. Your employer acted illegally or unethically.
3. The contract doesn't relate to a legitimate business interest.
4. A breach of contract by your employer. For instance, if your employer failed to offer appropriate consideration.
5. You never signed the non-compete.
6. 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

Terminating an employee is one of the most challenging aspects of being a business owner.

However, you must also consider potential legal implications, as they can be significant. Above all else, you must comply with federal and state employment laws.

If you are unsure about terminating an employee, consult an employment lawyer.

Grounds for Immediate Dismissal

Specific actions by an employee can justify immediate dismissal because of their serious nature. These grounds typically include:

• Gross misconduct or behavior that significantly violates company policies or norms. Examples include theft, fraud, violence, harassment, and being under the influence of drugs or alcohol at work.
• Breach of confidentiality or misuse of sensitive company information.
• Willful destruction of company property.
• Falsifying company records.

Although these terminations may be more black and white, you must follow some guidelines. Any grounds specifically enumerated in your employment manual can be added to this list. Employers should still follow due process and document the reasons for termination to defend against potential wrongful termination claims.

Protections for Employees in Pennsylvania

Pennsylvania is an "at-will" employment state, meaning employers can terminate an employee at any time.

However, this doesn't mean employers have carte blanche for firing staff. Several laws at the federal and state level protect employees from unjust termination.

Key protections include:

Discrimination

Federal laws, such as the Civil Rights Act and Americans with Disabilities Act (ADA), protect employees from discrimination. The Pennsylvania Human Relations Act (PHRA), which offers similar protections to federal laws but also extends to employers with four or more employees, covers additional protected classes such as use of a guide or support animal due to a disability. Consequently, you can't terminate someone based on race, color, religion, sex, national origin, age, disability, or genetic information.

Retaliation

Employers cannot fire employees for participating in protected activities. For example, you can't fire someone for filing a complaint with a regulatory agency such as OSHA against the employer or whistleblowing. Another example is that under the FMLA law, you can't fire an employee for taking time off for family or medical reasons. the PHRA also prohibits retaliation against employees who engage in protected activities.

Contractual Obligations

If an employment contract exists, employers must adhere to its terms, which may stipulate conditions for termination. The terms outlined in the contract will apply. As a result, you could face wrongful termination charges based on any breach of the contract.

For instance, if you hire an employee for a specific period, you are obligated to uphold the agreement as laid out with the terms of the agreement. Per the contract, this may mean keeping an employee for a particular period. You can still fire the employee if the contract includes other terms, such as poor performance.

Pennsylvania does not recognize oral or implied contracts.

Public Policy

You can't fire an employee for serving on jury duty or taking an approved medical leave.

For example, you can't terminate an employee for refusing to serve alcohol to a drunken customer. Having them do so violates the law.

Best Practices for Terminating an Employee

We live in a litigious world where lawsuits happen every day. There's never a guarantee that you won't face legal action for terminating an employee. Keeping your employee handbook regularly updated is a must. Employees should sign off on these updates to acknowledge receipt and understanding.

You should also seek out guidance from a human resources specialist. If your business does not have one in-house, you can seek support from external services.

Below are steps to reduce the risk if you address it yourself.

Document Performance Issues

While not a legal requirement in Pennsylvania, consistently document performance issues and disciplinary actions. You can also document any performance reviews and improvement initiatives.

This documentation can provide a basis for termination decisions and defend against wrongful claims.

Refer to Your Employee Handbook

When you start your business, you should commit to creating an employee handbook. It should outline clear policies on performance expectations, disciplinary procedures, and termination processes. Adherence to these policies can protect you from claims of unfair treatment. Employee Handbooks help to set expectations for everyone. It is also good practice to have employees sign off that they have read their employee handbook, and this signature should be obtained again any time there is an update.

Conduct a Termination Meeting

When the decision is final, arrange a face-to-face meeting to inform the employee. Include a witness, either a team member or an HR representative.

Draft an Employee Termination Letter

Give the employee a written termination letter during the meeting. It should include the termination date, outline the reasons for termination, and include any severance package, if applicable. Be careful outlining the reasons for termination. Keep the language short and to the point. You do not want to provide any language that could open you to liability in a lawsuit. If you are unsure how to draft such a document, it is best to consult your HR professional or attorney.

A severance package is not required in Pennsylvania but may be a good idea in certain circumstances. A severance package is often provided in the following circumstances:

• Layoffs: When employees lose their jobs due to company actions such as downsizing, mergers, or restructuring
• Termination: When an employee is fired, they may be offered severance pay to avoid potential lawsuits.
• Contractual Obligations: When an employment contract includes severance as part of their terms

Outside of a contractual obligation, a severance package usually requires 2-4 weeks of pay for every year of employment. At the business owner's discretion, it may also include other entitlements.

Reclaim Company Property

Arrange for the return of company property, including badges, laptops, or keys, and have a checklist signed by the employee confirming the return of all items.

Address Unemployment Claims

Terminated employees in Pennsylvania may be eligible for unemployment compensation unless terminated for "willful misconduct," such as theft or violation of company policies. Employers can contest unemployment claims if they believe the termination was justified.

Employers must provide a UC-1609 form (Employee Notice of Separation) whenever terminating an employee.

Ensure Final Payments

Under Pennsylvania law, employers must pay a terminated employee's final wages by the next regular payday. Although not required, if company policy dictates payout for unused vacation or paid time off, follow this policy to avoid potential claims.

Discuss Health Insurance Continuation

Federal COBRA law applies to Pennsylvania companies with 20 or more employees. COBRA benefits generally extend health coverage under the business's insurance plan for 18 months.

Pennsylvania also has a mini-COBRA law for employers with two to 19 employees. Mini-COBRA benefits extend health coverage under the small business's insurance plan for up to nine months.

Frequently Asked Questions About Terminating an Employee

Here are some commonly asked questions about terminating an employee.

Can I fire an employee in Pennsylvania for no reason?

Yes, Pennsylvania is an at-will employment state. If the reason for firing staff meets legal requirements, it can be for any reason.

What should I do before terminating an employee to reduce legal risks?

Here are some commonly asked questions about terminating an employee.

Can I fire an employee in Pennsylvania for no reason?

Yes, Pennsylvania is an at-will employment state. If the reason for firing staff meets legal requirements, it can be with or without cause.

How should I conduct a termination meeting?

It should be straightforward and brief, explaining the reasons for termination clearly. You should consider having a witness in the meeting and provide a termination notice.

What are the risks of wrongful termination claims?

Wrongful termination claims can arise from allegations of discrimination, retaliation, violation of employment contracts, or not following your termination procedures. It takes about six months for the EEOC to investigate the claim.
Wrongful termination settlements may require employers who wrongfully terminate an employee to compensate that employee through:

• Lost wages
• Emotional distress damages
• Employment reinstatement
• Pain and suffering damages
• Injunctive relief
• Punitive damages

Can you fire an employee for actions outside the workplace?

As an employer, you can fire someone for breaking your company's rules, even outside work. You expect your employees to operate in the company’s best interests. So, any illegal actions outside work can cause termination. It is best to lay this out clearly in the Employee Handbook so your employees understand what is expected of them.

Can I terminate an employee for social media posts?

Employers in at-will states like PA can discipline or terminate employees for any legal reason. In Pennsylvania, monitoring Internet use in the workplace, including social media activity, is legal.

Sometimes, you can fire employees for posts made outside work hours. This is especially true if the posts are offensive, harm public trust, or negatively impact the employer. It is best practice to create a social media policy and include it within your Employee Handbook.

How do I handle the employee's final paycheck?

An employer must give a final paycheck to a fired worker on or before the next scheduled payday.

Will firing staff impact my unemployment insurance rates?

If a former employee files for and receives unemployment benefits, it could affect your unemployment insurance rates. Rates can increase with the number of claims filed against your business. So, it's essential to have proper documentation and follow lawful termination practices.

Can I terminate an employee in PA without a written warning?

Yes, however, you should follow best practices to avoid legal issues. That includes documenting issues and presenting a legitimate reason for dismissal.

How many verbal warnings are required before terminating an employee?

Pennsylvania has no legally defined number of verbal warnings required before dismissal for at-will employees. The number of warnings, if any, typically depends on the employer's policies and the severity of the situation.

Many employers adopt a progressive discipline policy. The process starts with verbal and written warnings, suspension, and termination.

Employment Lawyers for Bucks, Delaware, and Montgomery County Businesses

Terminating an employee is never easy. The last thing you want, though, is a wrongful termination lawsuit. Even if you don't wind up in court, you'll waste valuable time negotiating a settlement.

Our employment lawyers work with clients of all sizes and can help address numerous employment concerns. Call our law offices to get answers to your questions before you take the wrong path.

We have law offices in Doylestown, Norristown, and Wayne, PA.

You are the CEO of Company A, a cutting-edge developer of new software.  Over golf (or sushi), you agree with the CEO of equally advanced Company B that each of you will not hire or try to hire away the other’s top talent through an anti-poaching agreement.

Is anything wrong with this?  Yes!  The Sherman Antitrust Act prohibits contracts in restraint of trade or competition.  And an agreement with no purpose besides conspiring to limit talent competition is a per se violation of the Sherman Act.  The Sherman Act carries severe criminal and civil penalties.  So the two CEOs should re-think their approach, to put it mildly.

Both CEOs have tried to enter into non-hire and anti-poaching agreements. In such an agreement, competing employers agree to refrain from hiring or recruiting (poaching) each other’s employees.  A typical agreement prohibits cold calling and bidding wars for employees and requires notification when recruiting each other’s employees.

Anti-Poaching Agreements Present Serious Concerns

Non-hire and anti-poaching agreements raise several key policy and economic concerns.

First, the agreements make it hard for employees to move between employers.  Most employees are at-will employees who may leave one employer for another at any time, for any reason or no reason.

Second, these agreements operate to suppress employee salaries. For example, competition for talent drives wages up, and restraints on competition have the opposite effect.

Third, the agreements may not even be known to employees who try to find a new job (or recruit from other companies), only to find they have violated a policy set by those at the top.

Anti-Poaching Agreements Serve Little Purpose

Non-hire or anti-poaching agreements are also unnecessary.  Employers can use less harsh measures to protect against a talent drain by using contracts that are ancillary to a business relationship and reasonable in scope.  Post-employment restrictive covenants for non-competition and non-solicitation may limit an employee from working for a competitor or accepting or soliciting business from customers.

Restrictive covenants are enforceable if supported by consideration. For example, the restrictions must reasonably relate to legitimate business interests. They must also be reasonable in time and geographic scope. Employers may also contract to restrict a departing employee from soliciting or hiring former co-workers to join a new employer during a short post-employment period.

This type of anti-raiding agreement is enforceable in Pennsylvania to prevent a competitor from crippling or destroying another business. However, it does not prevent a competitor from hiring away talent.  And courts are reluctant to find that an ex-employee has solicited anyone absent active pursuit of a former colleague. For instance, it is not a solicitation to tell someone about an opportunity or a job posting.

Beyond that, courts have allowed anti-poaching agreements in limited circumstances where one employer places a consultant or expert with another business.  An employer may also require employees to repay training costs where an employee receives training and then leaves shortly afterward.  Unions have the same power where a trainee takes a non-union job after training.

Case Law Relating to Poaching Clauses

Like many employment law trends, scrutiny of anti-poaching agreements seems to have started in California.  The courts first addressed a class action by employees in the technology industry. Employees complained of a concerted effort to prevent poaching.

The following major class action dealt with the animation industry.  But non-hire agreements have also arisen in less high-flying or glamorous industries.  For example, earlier this year, the U.S. Department of Justice negotiated an antitrust settlement that banned non-hire agreements by two significant competitors in the rail equipment industry.  This settlement led to a private civil antitrust class action by employees of the two competitors.

And in March 2018, a Pennsylvania Superior Court panel affirmed a lower court order invalidating a no-hire agreement in the trucking industry as contrary to public policy.  The Superior Court has since granted the reargument en banc and has withdrawn the panel decision.  The en banc decision will tell us whether Pennsylvania will join those who have rejected no-hire agreements, like Wisconsin, or permit suitably narrow agreements like many other states.

And finally, the fast food industry has come under fire for using anti-poaching agreements prohibiting employees from working simultaneously at more than one chain location.  Early in July, attorneys general in 11 states demanded documents from eight well-known fast food chains regarding the use of these no-poaching provisions.  So non-poaching agreements are seemingly in use, and under attack, in both the economy's high-end and more basic sectors.

Talk to Our Employment Lawyers

If you have questions about anti-poaching agreements, please contact Thomas D. Rees at 610-275-0700 or trees@highswartz.com. Our employment lawyers provide businesses and nonprofit organizations throughout the Pennsylvania region, including Bucks County, Montgomery County, Delaware County, Philadelphia, and Chester County, with sound advice and excellent representation. Our employment law attorneys deal with workplace issues in an ever-changing environment. They seek to minimize the risk of employee lawsuits for our clients.

The information above is general: we recommend you consult an attorney regarding your circumstances.  The content of this information is not meant to be considered legal advice or a substitute for legal representation.

Throughout your professional career, you may have signed a non-compete. But, if you haven't yet, now is an excellent time to learn about these common and important documents.

Typically, you'll receive a non-compete agreement when you start a new job. Your temptation may be to skim the pages without paying attention to the details or restrictions. After all, the non-compete only applies after you leave this job, and you're likely thrilled about the new position at the moment of signing. But it's later, when a headhunter contacts you or you're ready for a career change, that you begin to worry about the implications of your non-compete.

What is a Non-Compete?

A non-compete agreement is a restrictive covenant limiting your ability to work in a particular field or industry. Generally, it includes a timeframe and defines the geographic area where you can work. It differs from a garden leave agreement, commonly used for companies in financial sectors.

Some states, like North Dakota, Oklahoma, and California, don't enforce non-competes. Pennsylvania has no general statute or regulations governing them.

That said, plenty of case law guides interpreting, understanding, and enforcing non-competes. However, Pennsylvania courts disfavor tools used to restrain trade. As a result, they tend to construe non-compete agreements against an employer seeking enforcement.

Accordingly, the courts will only enforce a  non-compete agreement that is:

1. Incidental to an employment relationship between the parties
2. Reasonably necessary to protect the employer's business interests
3. Reasonably limited in scope, duration, and geography

Courts require that you affirmatively agree to the terms of a non-compete - such as by reading and signing it. So, for example, an employer can't just tell you it is there and bind you to its terms.

In addition, you're not required to sign a restrictive covenant. However, your employer may rescind the job offer by failing to do so. Moreover, your employer may fire you if you are already employed. You can contest the employer's decision.

Whether you win or not depends on the facts of each case and state employment laws. In addition, the reasonableness of the proposed non-compete may be relevant.

Non-Compete Agreements Require Consideration

Like any other contract, a non-compete agreement requires sufficient consideration. Generally, your employment represents appropriate consideration. So, your employer will ask you to sign a non-compete before or after your employment begins. Accordingly, you'll want to keep an eye out for a non-compete in the packet of papers you get on your first day.

After beginning work and being asked to sign a non-compete, the consideration can be either an increase in pay or a beneficial change in your employment status. However, an employer telling you to "sign or get out" is not sufficient consideration in Pennsylvania.

Restrictions on Your Employment

Once you satisfy yourself that consideration exists, you'll want to look at the agreement's actual terms. Since every non-compete and restrictive covenant is unique, the terms analysis will be highly fact-specific. Nonetheless, there are some rules of thumb to keep in mind.

Courts rarely uphold any types of restrictive covenants with non-competes combining excessive timeframes with a broad geography.

Pennsylvania courts have usually upheld restrictions for durations of one to three years. Regarding geographic scope, Pennsylvania courts look to the range of the employee's duties in defining a reasonable territorial limitation. For example, your position is sales-related and in a relatively defined territory. In this instance, a non-compete agreement prohibiting you from selling a competitor's product or service would likely be appropriate.

A Pennsylvania court may, at its discretion, modify the terms of the agreement. For example, it can assign a more reasonable scope or duration if determining the more appropriate course of action. Indeed, some non-competes go overbroad with their restrictions. As a result, a court may nullify the non-compete entirely if an employee challenges the agreement.

Is It Possible to Challenge a Non-Compete Agreement?

If you ignore a non-compete, you risk a lawsuit or termination by your employer. However, there are ways to challenge the validity of your restrictive covenant.

Here are five ways to beat your non-compete agreement:

1. Breach of Contract: Sometimes, employers bury a non-compete in an employment contract. So, ensure your employer lived up to other contractual obligations such as insurance or compensation. If your employer breached the contract, courts might relieve your non-compete obligations.
2. Legitimate Interest: Not all positions require a restrictive covenant. For example, suppose your work isn't privy to trade secrets, confidential information, specialized training, or other proprietary materials. In that case, there's no reason to include a non-compete as a condition of employment.
3. Reasonable Term: As mentioned, courts determine the reasonable timeframe for non-competes. If your employer includes an unreasonable period, courts may not uphold your non-compete. But, again, it depends on your state, job, and industry.
4. Confidential Information: If you have access to information available to everyone, it's not secret. Courts may not enforce the non-compete if you can prove that information is public domain.
5. Short-Staffed Positions: Some industries need workers, for example, in health, science, and safety positions. If you're in a short-staffed place, courts typically won't enforce a non-compete.

Talk to an employment lawyer to determine if you have appropriate grounds for challenging your employment agreement.

Is a Non-Compete Enforceable if I'm Fired?

It depends. First, look at the terms of your non-compete to see if it addresses termination. If so, the next question is whether that's legal, which again depends.

For example, if your employer is guilty of misconduct and terminates you, most courts have held that a non-compete is no longer enforceable. The reasoning is that illegal conduct by the employer was not part of your expectations when agreeing to the contract. It holds if your employer conducted unlawful activities and you elect to leave your job because of it.

Even if the reason for your termination is your fault, it's likely not to be a significant determinant. Generally, courts are less eager to enforce a non-compete agreement where the employer, and not you, decides to terminate the relationship.

Talk to an Employment Lawyer Before Signing Any Restrictive Covenants

Ultimately, each non-compete agreement is specific to the employer, its business, and the employee's position. However, interpreting and determining their enforceability is daunting. If you have concerns about a non-compete you signed or your employer asked you to sign, it's wise to seek advice from an experienced employment lawyer. They can help you most effectively navigate the non-compete's terms.

If you have any questions about employment agreements relating to restrictive covenants or employment issues in general, please get in touch with us at 610-275-0700 or main@highswartz.com.

Our employment law attorneys provide clients throughout the Pennsylvania region, including Bucks County, Montgomery County, Delaware County, Philadelphia, and Chester County, with sound advice and excellent representation. Our employment lawyers deal with workplace issues in an ever-changing environment. They counsel and serve employers on general employment policies and handle individual employment matters.

The information above is general: we recommend you consult an attorney regarding your circumstances. You should not consider the content of this information as legal advice or a substitute for legal representation.