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11/17/2019 12:42 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=27317
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: January 3, 2019 12:28 PM
From: Representative Thomas R. Caltagirone
To: All House members
Subject: Prospective Ban on Restrictive Covenants in Employment Agreements
 
I believe the Commonwealth should take steps to encourage innovation, economic development and lower the unemployment rate by creating an environment where businesses and individuals have every opportunity to thrive. My legislation would deem non-compete language in employment agreements to be against public policy. My bill is similar to laws in other states that prohibit non-compete agreements, except for a small set of specific exceptions. Some experts credit the rapid development of Silicon Valley to California’s constitutional prohibition of restrictive covenants and allowing tech companies to seek out and pay the best and brightest employees.

Many employees find themselves in jobs for which they are over-qualified and under-employed compared to their skills and education. My bill will provide these employees with more mobility and will allow employees with in-demand skills to take better paying jobs while maximize their God given potential. What’s more, these types of agreements presently force highly qualified individuals to depart Pennsylvania in order to advance their careers. I want to provide every worker in Pennsylvania with the opportunity to stay in the state and maximize their earning capacity. This bill will do that.

Moreover, this legislation provides Pennsylvania businesses with the ability to seek out and hire the best and brightest candidates. Many businesses find it difficult to attract highly qualified employees who are not restricted by a non-compete agreement. Under the current archaic indentured servitude system, businesses, workers and our economy suffer. This bill will give Pennsylvania businesses an advantage over non-Pennsylvania businesses in retaining and recruiting the best and brightest talent to the Commonwealth.

This legislation will have a positive impact on employees up and down the employment market since non-compete agreements have become pervasive in many industries, not just high paying professional positions. Everyone from low wage earners, service industry, tech sector, sales and marketing, and healthcare will have better opportunities for higher compensation and better benefits. I believe restrictive covenants in employment agreements are undemocratic, quash innovation, stifle the entrepreneurial spirit and are bad for the overall health of our economy.

I hope you will consider joining me in support of this legislation.



Introduced as HB171