Pennsylvania Non-Solicitation Agreement

Is It Legally Enforceable in Pennsylvania?

Yes — non-solicitation agreements are legally binding in Pennsylvania but with limitations.

The court balances the employer’s business interests against the employee’s interest in earning a living and the interest of the public before deciding whether to enforce the agreement.^[1]

An agreement that restrains trade is considered unreasonable and unenforceable.^[2]

An agreement can only apply within particular parameters of time and space.^[3]

Types of Solicitation to Prohibit

In Pennsylvania, as long as the terms of the agreement are bound by a reasonable timeframe and geographical limit while balancing the interests of the employer, employee, and the public, it can generally restrict a former employee from recruiting, hiring, or poaching the employer’s:

Former or current clients
Former or current employees
Independent contractors
Business associates, suppliers, etc.

What to Include

What should you include in a non-solicitation agreement.

In order to be legally enforceable in a Pennsylvania court of law, a non-solicitation covenant must include the following:

1. Time Restraint

The length of time that the agreement will be enforced must be specified in the contract. Typically, it goes into effect when the employee’s job with the employer is terminated.

2. Geographical Restraint

The agreement should specify the area or location where the individual is bound to the restrictive terms. This limitation is generally bound to the city, county, or region where the employer is located.

3. Specific Action

Providing specificity in what “soliciting” means and whom the individual is restricted from soliciting can be helpful in avoiding confusion or legal scuffle between the two parties.