The Central Penn Business Journal recently posted an interesting article regarding non-compete agreements – Recession Intensifies Non-Compete Enforcement:
The recession is deepening employers’ interest in non-compete agreements, which curb employees from bolting to a rival company or starting their own, according to local attorneys.
The agreements have become increasingly common over the last few years, even as Pennsylvania courts have made them tougher to enforce, attorneys said.
A good non-compete agreement may be even more important during an economic downturn when the loss of a key employee could potentially impact your business beyond recession related losses. However, a non-compete that is not enforceable will provide a false sense of security. Last year I posted a popular article on our employment law blog that outlined some things to consider – Non-Competes: Pigs Get Fed, But Hogs Get Slaughtered.