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Non-Compete Laws in Pennsylvania2026 Guide

Pennsylvania enforces non-competes with no salary threshold. When Insulation Corp. fired a sales rep for poor performance then tried to enforce a 300-mile non-compete, the court refused — a fired employee can't reasonably be a competitive threat (Insulation Corp. v. Brobston, 1995).

Pennsylvania Non-Compete Law: Statutory Framework & Judicial Standards

Last updated March 2026. For informational purposes only — does not constitute legal advice. Consult a licensed attorney in Pennsylvania for guidance on your specific situation.

§ 1. Governing Statutory & Common Law Authority

The enforceability of non-competition agreements in Pennsylvania is governed by Common law; Act 17 of 2024 (healthcare workers). Non-competes enforceable if reasonable. Pennsylvania courts apply a reasonableness test considering time, geography, and scope.

Recent legislative developments: Act 17 of 2024: prohibits non-competes for physicians, CRNPs, and physician assistants, effective 2025.

§ 2. Compensation Threshold Requirements

Pennsylvania does not impose a minimum salary threshold for non-compete enforceability. This means non-competes may be enforced against employees at any income level, including hourly and part-time workers.

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§ 3. Temporal Limitations on Post-Employment Restrictions

Pennsylvania does not codify a maximum duration. Courts generally uphold 1-2 years. In practice, 1-2 years is generally considered the outer limit of reasonableness, though outcomes vary significantly based on the employee's role and access to trade secrets.

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§ 4. Judicial Modification (Reformation Doctrine)

Pennsylvania follows the reformation doctrine, granting courts broad authority to rewrite overbroad non-compete terms. This is the most employer-favorable approach — even a poorly drafted agreement may be reshaped into an enforceable restriction.

§ 5. Statutory Exemptions & Carve-Outs

Pennsylvania law exempts certain workers from non-compete enforcement:

  • Healthcare practitioners (Act 17 of 2024: physicians, CRNPs, physician assistants prohibited from non-competes effective 2025)

§ 6. Consideration & Contract Formation

New employment is sufficient. For existing employees, additional consideration may be required. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.

§ 7. Effect of Involuntary Termination

Courts consider but do not automatically void. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.

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Practitioner Notes

Healthcare worker exemption is a significant recent change.

For informational purposes only. Consult a licensed employment attorney in Pennsylvania for advice specific to your circumstances.

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Based on your salary of $XX,XXX and your state's threshold of $XX,XXX, your non-compete is...

This determination is based on a cross-reference of your specific compensation against the statutory threshold, the duration of your restriction, your industry classification, and the circumstances of your departure. The following sections detail each factor.
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National Precedent

Notable non-compete cases

These nationally significant cases illustrate common non-compete disputes.

Employee won2016 · IL · Food Service

Jimmy John's Forced Sandwich Makers to Sign Non-Competes Barring Work at Any Deli

Jimmy John's required its sandwich makers and delivery drivers -- workers earning near minimum wage -- to sign non-compete agreements prohibiting them from working at any business that sold 'submarine, hero-type, deli-style, pita, and/or wrapped or rolled sandwiches' within two miles of any Jimmy John's location in the United States for two years after leaving. The Illinois Attorney General filed a lawsuit in June 2016, and the New York Attorney General launched a separate investigation. Workers who wanted to leave for a better-paying food service job were effectively locked out of the entire sandwich industry.

Outcome

Jimmy John's agreed to stop using non-compete clauses in hiring packets nationwide, paid $100,000 to fund education and outreach programs, and was required to notify current and former employees that their non-competes would not be enforced.

Source: CNBC→
Employee won2025 · National · Pet Services

Pet Cremation Company Locked 1,800 Workers -- Including Hourly Laborers and Drivers -- Into Nationwide Non-Competes

Gateway Services, the largest pet cremation business in the U.S. with over 100 locations serving 17,000 veterinary clinics, imposed non-compete agreements on nearly 1,800 employees prohibiting them from working anywhere in the pet cremation industry in the entire United States for one year after leaving. The agreements were applied without any individualized consideration of an employee's role -- hourly cremation facility laborers, drivers, and customer service staff were subject to the same nationwide restrictions as executives. The FTC filed an enforcement action in September 2025, marking a shift to case-by-case non-compete enforcement after its blanket ban was struck down.

Outcome

In November 2025, the FTC finalized a consent order requiring Gateway to stop enforcing all existing non-competes and banning it from entering into similar agreements in the future, freeing nearly 1,800 workers.

Source: Federal Trade Commission→

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