Pa. Appeals Court Limits Noncompetes On Current Employees

Law360, Philadelphia (May 13, 2014, 4:49 PM EDT) -- The Pennsylvania Superior Court on Tuesday ruled in a case of first impression that employers cannot impose noncompete clauses on existing employees unless they provide them added benefits in exchange for the restriction.

The three-judge panel upheld a trial court ruling that found invalid the noncompete agreement imposed on plaintiff David Socko by his former employer, basement waterproofing services firm Mid-Atlantic Systems of CPA Inc.

“Our Supreme Court has consistently instructed that restrictive covenants in employments are disfavored, both because they are in restraint of trade and...
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