Aneta Janiak-Olejnik

Non Solicitation Agreement Pennsylvania

Non-solicitation agreements are a common legal tool that many businesses use to protect themselves from potential damage caused by departing employees. In Pennsylvania, such agreements are legally enforceable, provided they meet certain criteria.

A non-solicitation agreement is essentially a contract between an employer and an employee that prohibits the employee from contacting the employer`s customers or clients after they leave the company. The purpose of this agreement is to prevent the employee from using their knowledge of the employer`s confidential information, trade secrets, or customer relationships to benefit a competitor or start a rival business.

In Pennsylvania, non-solicitation agreements are enforceable if they meet the following criteria:

1. The agreement must be supported by adequate consideration, meaning that the employer must offer something of value in exchange for the employee`s promise not to solicit customers or clients. For example, the employer might offer a signing bonus or pay the employee a higher salary in exchange for their agreement.

2. The agreement must be reasonably necessary to protect the employer`s legitimate business interests. This means that the employer must demonstrate that the non-solicitation agreement is necessary to prevent the employee from unfairly competing with the employer or stealing confidential information.

3. The agreement must be reasonable in scope, meaning that the restrictions placed on the employee`s post-employment conduct must be no broader than necessary to protect the employer`s interests. For example, a non-solicitation agreement might prohibit the employee from contacting customers with whom they had direct contact during their employment, but not customers with whom they had no contact.

It`s important to note that non-solicitation agreements are not the same as non-compete agreements. Non-compete agreements generally prohibit employees from working for a competitor for a certain period of time after leaving their current job, while non-solicitation agreements only restrict the employee`s ability to solicit customers or clients.

If you are an employer considering implementing a non-solicitation agreement in Pennsylvania, it`s important to consult with a qualified attorney who can help you draft an agreement that meets the legal requirements and protects your interests. Similarly, if you are an employee who has been asked to sign a non-solicitation agreement, you should seek legal counsel to review the terms and ensure that they are reasonable and enforceable.