Legal Question in Business Law in Pennsylvania

Coersive non-compete clause

I have reviewed other non-compete questions in the forum, and have become curious about my situation. I was asked to sign a non-compete by a former employer restricting me from clients up to 12 months after departure. There was no compensation attached, and in fact, was led to believe it must be signed to maintain employment. Being a new employee at the time, this was a no-brainer. Since joining a new organization 7 weeks ago, former clients are requesting my services. The ''clause'' was typewritten by the former owner at home, with no notarization, and was self-witnessed by ownership. Was this prepared and executed legally? Was the coersion by ownership legal also? Is this ''clause'' legally binding? What are my options here?


Asked on 7/20/05, 4:21 pm

2 Answers from Attorneys
Gerald Hershenson Law Office of Gerald M. Hershenson

Re: Coersive non-compete clause

The situation should be reviewed by competent legal counsel. The document must be reviewed. Assuming it is properly prepared the agreement is enforceable if the former employer desires to institute legal action. The issues are complex and the documents signed must be evaluated to give a legal opinion upon which you can rely. Gerald Hershenson Esq. 215-579-9390

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Answered on 7/20/05, 4:29 pm

Re: Coersive non-compete clause

Non-compete clauses can be made a condition of initial employment. If one is created later, you must be given something, such as a raise, in exchange; it cannot simply be forced on you.

Whether the terms are enforceable is a fact question in each case. In general, non-compete clauses must be reasonably limited in time and geographic scope.

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Answered on 7/20/05, 4:33 pm


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