Legal Question in Employment Law in Pennsylvania

Re: non compete post termination

You asked about a post employment non-compete agreement.

The terms and conditions of the 401K are subject to those laid out and existing in the Summary Plan Description at the time of the event.

Generally non-compete agreements are signed either prior to or during employment and are strictly limited as to scope of time and place.

The regulations governing 401K plans are quite strict as to what is and is not allowable. A plan must be specific as to what it may or may not require. While no attorney can advise on this matter without reviewing the documents it would seem inappropriate to suggest that a vested 401K account can be withheld for failure to sign a post-termination agreement in connection with non-voluntary termination. It really doesn't sound right.

My suggestion would be to roll-over the money to an eligible account (Roll-over does not mean take it out and spend it as it is meant to be retirement funds and the IRS penalties are substantial.)

If there are any problems with this matter I would be interested in pursuing this further.

Regards,

Roger

Re: non compete post termination

We routinely handle these cases. Generally, an employer cannot require you to execute an employment or non-compete agreement conditioned upon wages or benefits that you have already earned. You should contact me via e-mail upon receipt of this to discuss in greater detail.

I look forward to your contact.