Pennsylvania non-compete law

Pay figure in the law

None found in the statutes we read

Separate rules for professions

health care workers

Statutes and official texts quoted

Fair Contracting for Health Care Practitioners Act, Act of Jul. 17, 2024, P.L. 846, No. 74, § 4(a); Act No. 74 of 2024, § 4(b); Act No. 74 of 2024, § 3; Act No. 74 of 2024, § 4(c)(1); Act No. 74 of 2024, § 4(c)(2); Act No. 74 of 2024, § 5(b); Act No. 74 of 2024, § 7

Is a non-compete allowed?

For covered health care practitioners, Pennsylvania deems a noncompete covenant entered into after the effective date void and unenforceable by an employer, except as provided in the one-year exception.

“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.”
Fair Contracting for Health Care Practitioners Act, Act of Jul. 17, 2024, P.L. 846, No. 74, § 4(a)

Notice and signing

After a practitioner leaves, the employer must notify the practitioner's recent patients of the departure and record-transfer options within 90 days (for practitioners with an ongoing outpatient relationship of two or more years).

“The employer shall provide the notice within 90 days of the health care practitioner's departure.”
Act No. 74 of 2024, § 5(b)

Health care and other professions

An employer may enforce a health care practitioner noncompete lasting no more than one year, provided the practitioner was not dismissed by the employer.

“An employer may enforce a noncompete covenant if the length of the noncompete covenant is no more than one year, provided that the health care practitioner was not dismissed by the employer.”
Act No. 74 of 2024, § 4(b)

Who is covered

The act covers medical doctors, doctors of osteopathy, certified registered nurse anesthetists, certified registered nurse practitioners and physician assistants.

“(3) A certified registered nurse anesthetist as defined in section 2(16) of the act of May 22, 1951 (P.L.317, No.69), known as The Professional Nursing Law.”
Act No. 74 of 2024, § 3

Exceptions

The act does not void a noncompete with a practitioner who has an interest in a business entity merely because of a sale of the ownership interest or assets, a change-of-control transaction, or the practitioner's receipt of an ownership interest.

“the sale of an ownership interest or all or substantially all of the assets of the business entity;”
Act No. 74 of 2024, § 4(c)(2)

If it is challenged

The act does not prohibit enforcing a provision letting an employer recover reasonable expenses from a practitioner if the expenses meet the listed conditions (attributable to the practitioner within three years before separation, related to relocation, training and patient base, and amortized up to five years).

“Prohibit the enforcement of a contract provision that allows an employer to recover reasonable expenses from a health care practitioner, if the expenses are:”
Act No. 74 of 2024, § 4(c)(1)

When the rules took effect

The Fair Contracting for Health Care Practitioners Act took effect January 1, 2025.

“This act shall take effect January 1, 2025.”
Act No. 74 of 2024, § 7

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Pennsylvania rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Pennsylvania?

For covered health care practitioners, Pennsylvania deems a noncompete covenant entered into after the effective date void and unenforceable by an employer, except as provided in the one-year exception. (Fair Contracting for Health Care Practitioners Act, Act of Jul. 17, 2024, P.L. 846, No. 74, § 4(a)).

Does Pennsylvania have special non-compete rules for health care workers or other professions?

An employer may enforce a health care practitioner noncompete lasting no more than one year, provided the practitioner was not dismissed by the employer. (Act No. 74 of 2024, § 4(b)).