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Restrictive covenants are contractual clauses that limit an employee’s post-employment activities for a specified length of time and geographic area.  Their enforceability varies by state and by profession.  For example, restrictive covenants are unenforceable in the legal profession but are enforceable in the medical profession. The American Medical Association, however, discourages restrictive covenants between physicians. Yet it deems them ethical unless they are excessive in geographic scope or duration, or fail to reasonably accommodate patients’ choice of physician.

The determination of whether a restrictive covenant is reasonable is a factual one that is assessed on a case-by-case basis: courts weigh the competing interests of the employee versus the employer, and typically the burden is on the employer to demonstrate that the restrictive covenant protects the employer’s interests without posing an undue hardship on the employee.

In Pennsylvania, restrictive covenants are enforceable if they are incident to an employment relationship between the parties, the restrictions imposed by the covenant are reasonably necessary for the protection of the employer, and the restrictions imposed are reasonably limited in duration and geographic extent.  Hess v. Gebhard & Co. Inc., 808 A.2d 912 (Pa. 2002).

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Philadelphia, PA (December 6, 2016):  Kang Haggerty & Fetbroyt LLC, a business litigation boutique with offices in Philadelphia, PA and Cherry Hill, NJ is pleased to announce the addition of associates Jason Guss and David Scott.

Jason Guss concentrates his practice on a wide range of business transactional matters including entity formation, drafting internal documents, drafting business agreements, real estate transactions and tax issues.  He earned his J.D. from the Rutgers University School of Law – Camden in 2014 after graduating with a Bachelor of Science degree from Pennsylvania State University. Jason gained valuable experience working as a judicial extern at the Financial Industry Regulatory Authority (FINRA) and as a legal intern at Rutgers’ Civil Practice Clinic.  Prior to joining KHF, Jason worked for a national public accounting firm where he focused on tax consulting, tax compliance, and due diligence for mergers and acquisitions. He is admitted to the practice of law in Pennsylvania and New Jersey.

David Scott focuses on business litigation matters that include partnership disputes, contact disputes, civil RICO, and breach of fiduciary duty.  He also devotes significant aspects of his practice to securities litigation, class action cases, and creditor’s rights.  He earned his J.D. from the Wake Forest University School of Law, where he was a member of the Wake Forest Journal of Law and Policy. He graduated with a Bachelor of Science degree from Pennsylvania State University. While in law school, David gained experience in the Delaware County District Attorney’s Office and as a law clerk for Senior Judge Michael F. X. Coll on the Delaware County Court of Common Pleas.  He is admitted to the practice of law in Pennsylvania and New Jersey.

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