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Pennsylvania Non-Compete Agreement Template

Timing matters in Pennsylvania: a non-compete signed at hire is supported by the job itself, but one signed mid-employment needs fresh consideration such as a raise, promotion or bonus. Courts enforce covenants that are ancillary to employment or a business sale, reasonable in time and geography, and needed to protect interests like goodwill or confidential information.

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Pennsylvania rules to know

  • Must be reasonable and tied to employment

    Pennsylvania courts enforce non-competes that are ancillary to employment or a business sale, supported by consideration, reasonably limited in time and geography, and needed to protect legitimate interests such as goodwill or confidential information.

    Hess v. Gebhard & Co., 808 A.2d 912 (Pa. 2002)

  • Current employees need new consideration

    A non-compete signed at the start of employment is supported by the job itself. If signed mid-employment, the employee must receive new consideration such as a raise, promotion or bonus; continued employment alone, or language saying the parties intend to be legally bound, is not enough.

    Socko v. Mid-Atlantic Systems of CPA, Inc., 126 A.3d 1266 (Pa. 2015)

  • Courts may narrow overbroad terms

    Pennsylvania courts generally have discretion to enforce an overbroad covenant only to the extent reasonable, though they may refuse if the employer acted in bad faith. Covenants tied to a sale of a business are generally enforced more readily.

    Sidco Paper Co. v. Aaron, 351 A.2d 250 (Pa. 1976)

  • Health care practitioner limits

    For agreements entered on or after January 1, 2025, non-competes with physicians, nurse practitioners, nurse anesthetists and physician assistants are void if longer than one year or if the practitioner was dismissed by the employer. Sale-of-practice covenants are treated differently.

    Fair Contracting for Health Care Practitioners Act (Act 75 of 2024)

Last updated 2026-10-05

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Our Pennsylvania Non-Compete Agreement template as a Word document — a general starting point you fill in yourself. Sign in free to download it.

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What a non-compete agreement covers

  • Restricted activities and competitors
  • Duration and geographic scope
  • Non-solicitation of customers and employees
  • Consideration given for the restriction
  • Remedies and reformation
  • Governing law and venue

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Frequently asked questions

Is continued employment enough to support a Pennsylvania non-compete signed after hire?
No. If an existing Pennsylvania employee signs a non-compete, they must receive new consideration such as a raise, promotion or bonus. Continued employment alone is not enough, and neither is language saying the parties intend to be legally bound. Document the new benefit clearly in the agreement.
Can a Pennsylvania court narrow an overbroad non-compete?
Generally yes. Pennsylvania courts have discretion to enforce an overbroad covenant only to the extent reasonable, though they may refuse if the employer acted in bad faith. Covenants tied to a sale of a business are generally enforced more readily than covenants with employees.
How does Pennsylvania limit non-competes for health care practitioners?
For agreements entered on or after January 1, 2025, non-competes with physicians, nurse practitioners, nurse anesthetists and physician assistants are void if longer than one year or if the employer dismissed the practitioner. Covenants made as part of selling a practice are treated differently.
Are non-competes enforceable?
It depends heavily on the state. A few states ban most employee non-competes outright, others cap them by salary, duration or industry, and many enforce only restrictions that are reasonable in time, area and scope.
What's the difference between a non-compete and a non-solicit?
A non-compete stops someone working for a competitor or starting a competing business. A non-solicit only stops them from poaching your customers or staff. Non-solicits are enforceable in more places, but not everywhere.
Can I use a non-compete when selling my business?
Usually yes. Sale-of-business non-competes are treated much more favourably than employee ones, even in states that otherwise ban non-competes.

Non-Compete Agreement in other states

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