Legal Basics for Restrictive Covenants

I. The Requisite Factors that Constitute an Enforceable Restrictive Covenant

To be valid and enforceable in Pennsylvania, a restrictive covenant must meet the following four requirements:

The covenant must be ancillary to the employment relationship;
The covenant must be supported by adequate consideration;
The restriction sought to be imposed must be reasonably necessary to safeguard a legitimate interest of the employer; and
The restriction sought to be imposed must be reasonably limited in duration and geographic extent.

Hess v. Gebhard & Co., Inc., 570 Pa. 148, 157, 808 A.2d 912, 917 (2002); Nat. Bus. Servs., Inc. v. Wright, 2 F.Supp.2d 701, 707 (E.D. Pa. 1998).