While some federal courts have been making it easier for employers to use more expansive non-compete agreements to shackle their workers, some states are working to make it more difficult. California already has a blanket ban on non-compete agreements, including those signed in states where they are legal. Now Pennsylvania might be the next state to join California’s worker-friendly approach.
Pennsylvania’s legislators recently introduced a new house bill, titled the “Freedom to Work Act,” which would ban almost all non-compete agreements.
The proposed law, as it is currently written, is not quite as restrictive as California’s ban. Pennsylvania’s proposed Act defines a non-compete agreement as any agreement between an employer and their worker that is designed to prevent the worker from seeking employment with another company, although the Act would enforce non-compete agreements in certain situations, including the sale of a business or the dissolution of a partnership or LLC. The Act also would not apply to non-compete agreements in existence prior to the time the Act is made into law, although it would prohibit the renewal of any such agreements. Continue reading