Pennsylvania Non-compete Agreement Template

A Pennsylvania non compete agreement is a written legal contract. In it, an employee promises not to compete with a business for a set time after the job ends. Pennsylvania's Act of Jul. 17, 2024, P.L. 846, No. 74 limits these promises for health care practitioners.[1.1] Create a free Pennsylvania non compete agreement with the builder below, or download the PDF template and fill it in.

Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Pennsylvania law. If you notice an error or outdated information, please contact us.

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Employers use a non compete agreement template to protect details such as client lists, pricing, and methods. Employers often ask an employee to sign before the person learns those details.

Popular Local NCA Forms

Quite a few organizations usually want to prohibit their workers from working for the company’s competition when the employment ends. Different US states have different rules and policies involving non-compete agreements. Below are some of the most common local non-competes searched by people.

What the Pennsylvania Non Compete Template Covers

The template is a non compete agreement between an employee, called the Agent, and a business, called the Company. It starts on the Effective Date, runs through the employment, and continues for the number of years you enter after the employment ends. Seven numbered sections set the terms.

  • Section 1, Term. The agreement lasts through the Agent's employment and for the number of years you enter after it ends.
  • Section 2, Not a Contract of Employment. The agreement does not create an employment relationship, and it covers only its own subject matter.
  • Section 3, Non-Competition. You tick one box: any business that competes with the Company, or a list of named businesses. Another box limits the restriction to a geographic area you describe, and two boxes say whether it applies to online business.
  • Section 4, Non-Solicitation. During the term, the Agent may not lure away the Company's employees, contractors, customers, or vendors without the Company's written consent.
  • Section 5, Limitation. The parties agree that a court may adjust a restriction it finds unreasonable because of its length, its area, or any other reason.
  • Section 6, Applicable Law. The form names Pennsylvania law and a Pennsylvania county whose state or federal court may hear a dispute. You enter the county.
  • Section 7, Miscellaneous. If one term is invalid, the others stay in force. The agreement is the whole understanding between the parties, and a change counts only if both sign it in writing.

The last page has a signature block for the Agent and for the Company, each with lines for a signature, a printed name, and a title. Read every box before you sign, and keep a signed copy for each party.

Pennsylvania NCA Laws and Restrictions

Pennsylvania's Act of Jul. 17, 2024, P.L. 846, No. 74 sets rules for non compete agreements with health care practitioners. A noncompete covenant entered into after the effective date of the act's noncompete subsection is void and unenforceable by an employer, except as the act provides.[1.1] Section 4 puts it this way:

Except as provided under subsection (b), a noncompete covenant entered into after the effective date of this subsection is deemed contrary to the public policy and is void and unenforceable by an employer.

Act of Jul. 17, 2024, P.L. 846, No. 74, § 4

The act leaves room for some agreements. An employer may enforce a noncompete covenant if it lasts no more than one year, provided the health care practitioner was not dismissed by the employer.[1.1] Three more points apply:

  • The act does not void a noncompete with a practitioner who has an interest in a business entity as a direct result of the sale of an ownership interest or of substantially all the assets. The same goes for a sale, transfer or other disposition of control of the entity, including by merger or consolidation. The act keeps conditions in place for these cases.[1.1]
  • A preexisting noncompete covenant may be void and unenforceable under the act if the practitioner is not a party to that sale, transfer or other disposition.[1.1]
  • The act does not stop an employer from enforcing a contract term that lets it recover reasonable expenses from a practitioner. The expenses must be directly attributable to the practitioner and accrued within the three years before separation, unless the employer dismissed the practitioner.[1.1]
Not sure whether the act covers your role or your employment terms under state law? Ask a Pennsylvania attorney for legal advice on the draft before anyone signs.

Patient Notice When a Practitioner Leaves

Section 5 of the act adds a duty for employers. After a health care practitioner leaves, the employer must notify the practitioner's patients seen within the past year of the departure. The employer must give the notice within 90 days of the practitioner's departure. The requirement applies to a practitioner with an ongoing outpatient relationship with the patient of two or more years.[1.2]

Frequently Asked Questions

These answers cover the act on non compete agreements for health care practitioners and its patient notice rule. They follow the text of the act. For a specific agreement, ask a Pennsylvania attorney to review it before anyone signs.

Is a non compete agreement with a health care practitioner void in Pennsylvania?

A noncompete covenant entered into after the effective date of the act's noncompete subsection is void and unenforceable by an employer, except as the act provides.[1.1]

How long can a non compete agreement last for a health care practitioner?

An employer may enforce a noncompete covenant if it lasts no more than one year, provided the health care practitioner was not dismissed by the employer.[1.1]

Can an employer recover expenses from a health care practitioner?

In some cases, yes. The act does not stop an employer from enforcing a contract term that lets it recover reasonable expenses. Two limits apply:[1.1]

  • The expenses must be directly attributable to the practitioner.
  • They must have accrued within the three years before separation, unless the employer dismissed the practitioner.

Which patients must be told when a health care practitioner leaves?

The employer must notify the practitioner's patients seen within the past year. The requirement applies to a practitioner with an ongoing outpatient relationship with the patient of two or more years.[1.2]

Can an employer enforce a non compete agreement against a dismissed health care practitioner?

The act lets an employer enforce a noncompete covenant of no more than one year, provided the health care practitioner was not dismissed by the employer.[1.1]

General information, not legal or tax advice.

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Sources

  1. Act of Jul. 17, 2024, P.L. 846, No. 74, §§ 4 to 5.
    • 1.1 § 4
    • 1.2 § 5
Published: Aug 20, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.