Which state's laws are applicable in non-compete dispute?
Regarding agreements to not compete across state lines. What state's laws would be applicable, the state of incorporation of the employer's company that wrote the non-compete, or the state where the new hiring company is?
Thank you.
Answers (1)
Which state law applies to a noncompetition agreement can vary.
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, which state law applies to a noncompetition agreement can vary. The agreement itself generally states which law applies. However, if it does not, the law of the state in which it is being enforced is generally applied. Unfortunately, 'conflicts of laws' principles vary from state to state, so my answer may not hold for every state.
Furthermore, many states, such as Pennsylvania, feel that the right to work is important enough to be a matter of public policy. These states will generally apply another state's law if the contract requires, but won't apply such law if it violates their public policy. This frequently results in the home states' law being applied.
Your question requires a thorough review of the facts of your particular situation. If you believe a former employer may attempt to enforce a noncompetition agreement against you, you should consult an attorney immediately. Positioning yourself to deal with a noncompetition claim can be critical to defending yourself later.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Jul 9, 2006 8:43 PM [EST]
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, which state law applies to a noncompetition agreement can vary. The agreement itself generally states which law applies. However, if it does not, the law of the state in which it is being enforced is generally applied. Unfortunately, 'conflicts of laws' principles vary from state to state, so my answer may not hold for every state.
Furthermore, many states, such as Pennsylvania, feel that the right to work is important enough to be a matter of public policy. These states will generally apply another state's law if the contract requires, but won't apply such law if it violates their public policy. This frequently results in the home states' law being applied.
Your question requires a thorough review of the facts of your particular situation. If you believe a former employer may attempt to enforce a noncompetition agreement against you, you should consult an attorney immediately. Positioning yourself to deal with a noncompetition claim can be critical to defending yourself later.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
posted by Christopher Ezold | Jul 9, 2006 8:43 PM [EST]
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