Are Non-Competes Enforceable in Pennsylvania?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable if reasonable
Enforced if reasonable; health-care limits since 2025
Pennsylvania has no general non-compete statute. Courts enforce restraints that are incident to employment, reasonably necessary to protect the employer and reasonably limited in time and territory, and may enforce an overbroad covenant only as far as reasonable. A covenant signed after employment starts needs new consideration, such as a raise or promotion. Since January 1, 2025, non-competes for physicians, nurse anesthetists, nurse practitioners and physician assistants are unenforceable unless they last one year or less and the practitioner was not dismissed.
Check a non-compete
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Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
Pennsylvania enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- Pennsylvania: Enforced if reasonable; health-care limits since 2025. Fair Contracting for Health Care Practitioners Act, Act 74 of 2024
Other Pennsylvania rules to check
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Pennsylvania non-compete rules
- Signed mid-employment
- No - a covenant entered after employment begins needs new valuable consideration (Socko v. Mid-Atlantic Systems of CPA, Pa. 2015).
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
Profession-specific rules
- LimitedNon-competes entered on or after January 1, 2025 with physicians (MD/DO) are unenforceable unless 1 year or less and the practitioner was not dismissed; employers may recover certain relocation, training and patient-base expenses. Employers must notify patients of a departing practitioner within 90 days. (effective January 1, 2025) Act 74 of 2024 (HB 1633)
- LimitedThe same 1-year / not-dismissed limits apply to certified registered nurse anesthetists, certified registered nurse practitioners and physician assistants. (effective January 1, 2025) Act 74 of 2024 (HB 1633)
Recent and pending changes
- January 1, 2025: Fair Contracting for Health Care Practitioners Act (Act 74 of 2024, approved July 17, 2024) takes effect. HB 1633 (2023-24) history
Pending: HB 2558 (ban on broadcast-employee non-competes) passed the House 103-99 on July 1, 2026 and was referred to Senate Labor & Industry on July 9, 2026. SB 142 (broadcast) was reported from committee June 2, 2026 and laid on the table June 30, 2026.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Pennsylvania?
Enforced if reasonable; health-care limits since 2025. Pennsylvania has no general non-compete statute. Courts enforce restraints that are incident to employment, reasonably necessary to protect the employer and reasonably limited in time and territory, and may enforce an overbroad covenant only as far as reasonable. A covenant signed after employment starts needs new consideration, such as a raise or promotion. Since January 1, 2025, non-competes for physicians, nurse anesthetists, nurse practitioners and physician assistants are unenforceable unless they last one year or less and the practitioner was not dismissed.
Did the FTC ban non-competes in Pennsylvania?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable if reasonable): Alaska, Arizona, Connecticut, Delaware, Indiana, Iowa, Kansas, Kentucky
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Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Pennsylvania.