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PA · EMPLOY-CONTR · Updated July 2026 · Free

Pennsylvania Employment Contract

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Pennsylvania at a glance: Non-Compete Enforceability: Allowed under reasonableness test · At-Will Status: Presumed at-will · Governing Law: Pennsylvania Common Law

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Overview

Employment Contracts in Pennsylvania

Pennsylvania permits employee non-compete agreements if they are reasonable, protect a business interest, and are signed for consideration.
Key Facts

Pennsylvania Employment Contract — Quick Reference

RequirementPennsylvania Rule
Non-Compete EnforceabilityAllowed under reasonableness test
At-Will StatusPresumed at-will
Governing LawPennsylvania Common Law
Legal Requirements

Pennsylvania Legal Requirements

  • Must protect legitimate interests (such as trade secrets).
Governing Laws

Pennsylvania Governing Laws

73 Pa. Cons. Stat. § 201-1
Unfair Trade Practices
General business rules.

Read the full text of these laws at Cornell Law School's Pennsylvania legal resources or your state legislature's official website.

Questions & Answers

Pennsylvania Employment Contract — Frequently Asked Questions

Is continued employment valid consideration in Pennsylvania?

No. Pennsylvania requires new consideration (raise, bonus, promotion) if a non-compete is signed after employment starts.