Nonsolicitation covenants contained in two expired employment agreements were still in effect even after the employees in question were converted to “at-will” status and later terminated, the Pennsylvania Superior Court has held.

In Metalico Pittsburgh Inc. v. Newman, the Superior Court held that the trial court erred in finding that the nonsolicitation provisions expired with the agreements due to a lack of consideration.

Although this decision is consistent with prior case law enforcing restrictive covenants after a contractual period of employment has ended, employers can now be assured they can also change the terms and conditions of post-contractual employment without jeopardizing the restrictive covenants to which an employee has agreed.

Read the full article here. Subscription may be required.



Related Areas