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Pa. High Court Favors Workers In Noncompete Ruling

Law360, Philadelphia (November 18, 2015, 6:31 PM EST) -- The Pennsylvania Supreme Court stuck to its long history of disfavoring noncompete clauses on Wednesday, saying that employers could not use what attorneys have called “magic language” that allowed for the imposition of the clauses without providing employees any benefit in return.

In a 4-1 decision, the court ruled against a York County waterproofing business when it said the state’s Uniform Written Obligations Act — which dates to 1927 — could not take away the requirement that an employee must receive an actual benefit in exchange for any restrictions on his or her employment relationship.

The case pitted two competing elements...

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