Op-Ed: Pa. Supreme Court clarifies requirements for non-compete agreements By: Benjamin C. Dunlap, Jr, Contributing Writer January 15, 2021
8:34 am
The Pennsylvania Supreme Court spoke to the issue of the required consideration for restrictive covenants in employment contracting in
Rullex Co., LLC v. Tel-Stream, Inc. The Court was tasked with determining whether a non-compete agreement that was signed by the parties after employment began was enforceable.
It assessed whether a non-compete agreement was enforceable when there was no evidence of new consideration with the execution of the agreement. The Court held that new consideration is required for any additional covenants added to an employment agreement after the initial employment has begun when sufficient consideration could not be established for those covenants in the initial agreement.