A Talent Is a Terrible Thing to Waste: Toward a Workable Solution to the Problem of Restrictive Covenants in Employment Contracts

Authors

Angela M. Cerino

Abstract

Employment contracts often contain provisions which seek to limit the employee's right to compete directly or indirectly with the employer when the employment terminates. The Pennsylvania Supreme Court has generally enforced covenants not to compete which are reasonable in scope, necessary for the protection of the employer and not unduly burdensome to the employee. This article reviews the Pennsylvania Supreme Court's recent decisions regarding covenants not to compete. Specifically, the article discusses the impact of these decisions on three major employment groups: salespersons, doctors and executives. The author concludes that the court's application of the reasonableness standard has been inconsistent, tending to favor more highly skilled and paid employees while indiscriminately enforcing the employment restrictions against lower paid employees. Finally, the author proposes a statutory and a judicial approach to covenants not to compete designed to introduce more certainty into this area.

First Page

777

Recommended Citation

Angela M. Cerino, A Talent Is a Terrible Thing to Waste: Toward a Workable Solution to the Problem of Restrictive Covenants in Employment Contracts, 24 Duq. L. Rev. 777 (1986).
Available at: https://dsc.duq.edu/dlr/vol24/iss3/4