Philadelphia Noncompete Agreement Attorney

At the Law Office of Stanley B. Cheiken, I represent parties in disputes concerning the enforcement of confidentiality or noncompete agreements. In these difficult economic times, I work to protect the livelihood of employees against whom noncompete agreements are being enforced and employers who have been harmed by the violation of the noncompete agreement. Meet with me, Stanley Cheiken, to discuss your noncompete agreement dispute.

 

Laws Governing Noncompete Contracts

To keep noncompete contracts from inhibiting the economy, courts only uphold contracts that meet acceptable guidelines. The agreements must stay within reasonable industrial and geographical limitations, remain applicable to a company’s interests, and enforce a realistic timeline. Because the requirements for noncompete agreements are so specific, your best bet is to consult with my firm, as I have worked extensively with these types of contracts.

How I Can Help With Your Noncompete Agreements

At the Law Office of Stanley B. Cheiken, I draft noncompete agreements for employers and review agreements for employees before they sign them. Additionally, I handle these types of matters related to noncompete agreements:

• Wrongful termination of employees who refuse to sign noncompete contracts
• Litigation on behalf of employees trapped in legally dubious noncompete contracts
• Negotiation of agreements and settlements between employees and employers

Sometimes an employer defaults on the severance agreement. When the former employee seeks to collect the amounts due under the settlement, the employer will allege violations of the noncompete agreement to gain leverage against the former employee. My experience with the range of possibilities in severance agreement negotiations and litigation can help protect your interests both in the assertion of your own rights and in defense of counterclaims against you.

In addition to negotiating noncompete agreements before an employee signs them, I work to negotiate settlements between an employer and its former employee in noncompete disputes. Avoiding litigation minimizes expenses, saves time and helps everyone involved to move on.

Frequently Asked Questions About Noncompete Agreements

Here, I have answered some common questions asked about noncompete agreements in Pennsylvania and New Jersey.

What makes a noncompete agreement enforceable in Pennsylvania and New Jersey?

Both Pennsylvania and New Jersey courts apply similar standards when evaluating the enforceability of noncompete agreements. For a noncompete to be legally binding, it must meet several specific requirements that balance the employer’s business interests against the employee’s right to earn a living.

The agreement must protect the employer’s legitimate business interests, including any confidential information, trade secrets, customer relationships or specialized training investments. Courts will not enforce agreements that merely seek to eliminate competition or prevent employees from using their general skills and knowledge.

Geographic restrictions must be reasonable and tailored to the employer’s business territory. A company operating only in Philadelphia cannot enforce a nationwide restriction unless they can demonstrate legitimate business interests across that entire area. Similarly, the duration of the restriction must be reasonable, typically ranging from six months to two years depending on the industry and circumstances.

The scope of prohibited activities must be narrowly defined and directly related to the employee’s former position and the employer’s business operations. 

How can an employee challenge a noncompete agreement?

Employees can challenge noncompete agreements on several legal grounds. Common approaches include arguing that the restrictions are unreasonably broad in scope, geographic area or duration. If the employer cannot demonstrate legitimate business interests justifying the restrictions, courts may refuse to enforce the agreement.

Employees may also challenge agreements based on lack of consideration, meaning they received nothing of value in exchange for agreeing to the restrictions. This often occurs when employers require employees to sign noncompetes without providing additional compensation, benefits or job security.

Another effective challenge involves demonstrating that the employer breached the underlying employment contract or terminated the employee without cause, which may void the noncompete provisions. Additionally, if the employer fails to comply with state-specific requirements for noncompete agreements, the entire agreement may be unenforceable.

What should I consider before signing a noncompete agreement?

Before signing any noncompete agreement, carefully review the geographic scope, duration and specific activities that would be prohibited. Consider whether these restrictions would prevent you from earning a living in your chosen field and geographic area.

Evaluate what you are receiving in exchange for the restrictions, such as job opportunities, specialized training, access to confidential information or additional compensation. Negotiate modifications to unreasonable terms before signing, as courts generally will not rewrite agreements to make them more reasonable.

Speak With Me About Your Noncompete Agreement

I assist clients in understanding their rights and obligations under executive compensation law in Bucks County, Pennsylvania, and New Jersey. For a free consultation with an experienced trial lawyer who specializes in litigating disputes involving partners, executives, business organizations, and licensed professionals, contact me at the Law Office of Stanley B. Cheiken in Yardley.