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Protecting business interests through noncompete clauses

On Behalf of | Jul 2, 2021 | Employment Law |

There are specific things a Pennsylvania business can do that will shield its interests and minimize the chance of expensive litigation. One of these things is to create noncompete agreements as part of their employment contracts. These agreements can protect sensitive information that is important for the competitive advantage of the company, and it’s important these agreements be carefully drafted and legally enforceable. 

Is it legal? 

Essentially, noncompete agreements keep employees who may have access to certain types of information from leaving the company and immediately begin working for the competition. These agreements must meet the following requirements in order to withstand scrutiny in the event of a dispute, and these things include: 

  • It must protect a legitimate business interest of the employer. 
  • It has to be reasonable in its scope, period of enforceability and more. 
  • It has to be fair and supported by consideration at the time it’s signed. 

One way to ensure that a noncompete agreement meets all requirements is to seek the guidance of an experienced business law attorney at the time it’s drafted. This can help avoid problems that may arise in the future. 

What if the employee violates it? 

If the terms of a noncompete agreement are violated, it could be grounds for legal action. Disputes over the terms of a noncompete could also result in a lawsuit, but a Pennsylvania business has the right to protect its interests at every step. Having strong, smart and carefully drafted agreements can be a smart step toward long-term security and protection.