Pennsylvania Supreme Court Issues Groundbreaking Ruling on Challenging Noncompete Agreements: Employment Law Manual Updated

Author: Melissa A. Silver, XpertHR Legal Editor

The Pennsylvania Supreme Court recently ruled in Socko v. Mid-Atlantic Systems of CPA, Inc. that an employee who signed a restrictive covenant not to compete after the commencement of employment can challenge that agreement for lack of consideration (i.e., an exchange of promises) even though the restrictive covenant indicates that the parties intend to be legally bound pursuant to the Uniform Written Obligations Act.

As a result of this decision, the Pennsylvania Terms of Employment section has been updated.