In the Third Circuit, common law generally governs the use of restrictive covenants. States in this Circuit employ a reasonability standard to determine whether a restrictive covenant is enforceable. In New Jersey, even if a covenant is found to be reasonable, it may be limited in its application by: geographical area, period of enforceability or its scope of activity. Pennsylvania also uses common law to determine if a restrictive covenant is enforceable but restrictive covenants are generally disfavored.
State |
Law governing restrictive covenants |
Restrictive covenants in employment agreements will be enforced: |
| Delaware |
Common Law
See TP Group CI, Inc. v. Vetecnik, 2016 WL 5864030 (D.Del. Apr. 14, 2016). |
Delaware law recognizes employment restrictive covenants when such covenants:
|
| New Jersey |
Common Law
See Jiffy Lube Intern., v. Weiss Bros.,Inc., 834 F.Supp. 683 (D.N.J. 1993). |
A restrictive covenant will generally be found reasonable where it:
|
| Pennsylvania |
Common Law
See Freedom Medical Inc. v. Whitman, 343 F.Supp.3d 509 (E.D.Pa. 2018). |
Restrictive covenants are permitted under Pennsylvania, if:
|