Philadelphia Non-Compete Contracts and Litigation Lawyers
Key Takeaways:
- Non-competes may restrict future employment and business opportunities.
- Not every non-compete is enforceable in Pennsylvania.
- Legal review can help before signing or changing jobs.
- Non-compete disputes may lead to injunctions or litigation.
Non-compete agreements can affect who you work for, accepting a new job, who you can contact, and whether you can continue working in your industry. During disputes, the stakes often escalate quickly, particularly if a former employer tries to prevent you from working for a competitor.
The Gold Law Firm P.C. helps employees and employers navigate non-compete agreements and other restrictive covenants, from reviewing and negotiating contract terms to resolving disputes and litigating enforcement. With more than 40 years of employment law experience, our legal team can help you understand your rights, evaluate your options, and protect your interests when your livelihood or business is at stake.
Why Choose The Gold Law Firm P.C.?
Non-compete disputes can proceed rapidly and have significant consequences for both employees and businesses. Our team exclusively practices employment law and is backed by decades of experience handling complex contract disputes and employment litigation. Clients turn to our firm for:
- 40+ years of employment law experience
- Representation of
employees and employers - Experienced contract and litigation counsel
- Trial-ready representation when disputes escalate
- Trusted counsel to more than 4,500 referring attorneys
What Is a Non-Compete Agreement?
A non-compete agreement is a type of restrictive covenant that limits certain work or business activities after an employment relationship ends. Depending on the agreement, an employee may be restricted from working for certain competitors, performing particular types of work, or competing within a defined geographic area for a specified period.
Non-compete agreements may appear in employment contracts, compensation agreements, severance agreements, or other documents signed during or at the end of employment. Other restrictive covenants may include:
- Non-solicitation agreements: Restrict former employees from soliciting certain customers, clients, or employees.
- Confidentiality agreements: Limit the use or disclosure of confidential or proprietary business information.
- Non-disclosure agreements (NDAs): Prohibit disclosure of information identified as confidential under the agreement.
Understanding exactly what an agreement restricts is important before you sign it or make decisions about your next employment opportunity.
What Should I Do Before Signing a Non-Compete?
A non-compete can affect employment opportunities long after you sign, so it is important you understand the restrictions before agreeing to them, such as:
- Length of time the restrictions remain in effect
- Geographic area covered by the agreement
- Employers or businesses considered competitors
- Types of restricted work or activities
- Clients or customers restricted from contacting
- Restrictions on soliciting former coworkers
- Confidentiality and proprietary information requirements
- Potential consequences for violating the agreement
Depending on the circumstances, it may also be possible to negotiate the scope or terms of a restrictive covenant before signing. An experienced employment attorney can review the proposed agreement and identify provisions that may affect your career or business interests.
Can a Non-Compete Prevent Me From Taking a New Job?
A former employer may claim that accepting a position with a competitor violates your non-compete, but whether the agreement actually prohibits the new position depends on its language and enforceability. An issue may exist if you plan to:
- Accept an offer from a competing company
- Work in the same industry or geographic market
- Perform similar duties for a new employer
- Start your own competing business
- Work with your former employer’s clients or customers
If you are considering a new opportunity, have an employment law attorney review your agreement before resigning or accepting the position to understand the risks you may be facing. Doing so may also provide an opportunity to address restrictive covenant issues and prevent litigation.
Are Non-Compete Agreements Enforceable in Pennsylvania?
Signing a non-compete does not mean every restriction is enforceable. Pennsylvania courts may consider whether the agreement protects a legitimate business interest and whether its duration, geographic scope, and other restrictions are reasonable.
Because enforceability depends on the specific agreement and circumstances, have an experienced Philadelphia employment lawyer review your contract before assuming it prevents you from accepting another position.
What Happens if My Former Employer Says I Violated My Non-Compete?
Non-compete disputes can escalate quickly. A former employer may send a cease-and-desist letter demanding you stop certain work or business activities or file a lawsuit seeking immediate court intervention. Depending on the allegations, an employer may seek:
- Temporary Restraining Order (TRO): A request for immediate restrictions while the dispute proceeds.
- Injunction: A court order preventing certain employment or competitive activities.
- Financial Damages: Compensation for losses the employer claims resulted from the violation.
- Restriction Enforcement: Claims involving client solicitation, confidential information, trade secrets, or related contractual obligations.
Your new employer may also become involved. Seeking prompt legal advice is especially important when a former employer seeks an injunction that could affect your ability to continue working.
Can I Challenge a Non-Compete Agreement?
There may be grounds to challenge whether some or all of a restrictive covenant can be enforced, depending on whether the agreement:
- Imposes restrictions that are unreasonably broad
- Lasts longer than reasonably necessary
- Covers an excessive geographic area
- Protects a legitimate business interest
- Restricts more activity than necessary to protect that interest
- Meets other requirements for enforceability under applicable law
The strength of a challenge depends on the agreement itself and the circumstances surrounding the employment relationship. An employment lawyer can evaluate the restrictions and determine valid arguments.
How Do Confidentiality and Non-Disclosure Agreements Differ From Non-Competes?
Confidentiality and non-disclosure agreements restrict what information an employee may use or disclose rather than where the employee can work. Confidentiality obligations continue after employment ends even when an employee is free to work for a competitor, and include protected information, such as:
- Trade secrets
- Customer or client information
- Pricing and financial information
- Business plans and strategies
- Proprietary processes or methods
- Other confidential business information
Disputes over confidential information frequently occur alongside non-compete and non-solicitation claims. Understanding each provision in your agreement can help you avoid inadvertently violating contractual obligations when changing jobs or starting a business.
How Can a Philadelphia Non-Compete Lawyer Help?
Whether you are considering signing an agreement, planning a career move, or involved in a dispute, having experienced legal counsel can help you understand how restrictive covenants can affect both your legal and employment options. At The Gold Law Firm P.C., our Philadelphia non-compete lawyers can:
- Review non-compete agreements and other restrictive covenants before or after signing.
- Advise you before resigning, accepting a new position, hiring an employee, or starting a competing business.
- Negotiate restrictive terms, modifications, releases, and potential resolutions.
- Respond to cease-and-desist letters and demands alleging contract violations.
- Challenge or defend restrictive covenants when enforceability is disputed.
- Represent clients in injunction proceedings and related employment litigation.
Addressing potential problems early can sometimes prevent a contract disagreement from becoming a costly legal dispute. Our skilled employment law attorneys represent employees and employers in non-compete matters ranging from contract review and negotiation to complex employment litigation, and are prepared to protect your interests in court, when litigation cannot be avoided.
Frequently Asked Questions About Philadelphia Non-Compete Agreements
Can my employer enforce a non-compete if I was fired?
Termination does not automatically determine whether a non-compete can be enforced. How and why the employment relationship ended may be relevant, along with the language of the agreement and other circumstances.
Can my former employer sue my new employer?
Potentially. Non-compete disputes sometimes involve new employers, particularly when a former employer alleges the new company encouraged a contractual violation or improperly obtained confidential information.
What should I do if I receive a cease-and-desist letter?
Do not ignore it or respond before understanding the legal implications. A Philadelphia employment lawyer can review the letter and your agreements, assess the allegations, and help determine the appropriate response.
Philadelphia Non-Compete Contracts and Litigation Lawyers at The Gold Law Firm P.C. Help Clients Navigate Non-Compete Agreements and Litigation
Before signing any document containing a non-compete, restrictive covenant, or confidentiality agreement, consult the experienced Philadelphia non-compete contracts and litigation lawyers at The Gold Law Firm P.C. Our knowledgeable and experienced team can help you navigate the process and make informed decisions every step of the way. Call 215-569-1999 or contact us online to schedule a free consultation. We have offices in Philadelphia and Malvern, PA, Pennsauken, NJ, and New York, NY.
