The Pennsylvania Supreme Court recently reiterated prior Pennsylvania holdings that a restrictive covenant executed even after the first day of employment could still be enforceable without additional consideration, but clarified that this is only so if the essential terms of the covenant are agreed upon prior to commencement of employment. While we don’t necessarily advise that this is the best practice to follow, you’ll want to read our Employee Defection and Trade Secrets Practice Group’s new blog post summarizing the case and explaining the circumstances that might allow for enforcement of such a covenant. The blog post also provides some best practices to follow in recognition of the fact that business pressures often dictate a fast-paced hiring process that could lead to signatures on restrictive covenants taking a back seat to other considerations. You can read the post by clicking here.
Pennsylvania Employers Reminded By State Supreme Court About Importance Of Timing On Restrictive Covenant Signatures