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In a case of first impression for the appellate courts of this Commonwealth, the Pennsylvania Superior Court recently ruled in Socko v. Mid-Atlantic Systems of CPA, Inc. that language contained in an employment agreement entered into after commencement of employment, which indicated the parties’ “intent to be legally bound” was insufficient consideration to support a non-compete agreement.
Continue Reading Employers Must Provide “Valuable Consideration” To Current Employees When Entering A Non-Compete Agreement During Employment

In Pennsylvania, a non-compete agreement (NCA) must be supported by legal “consideration” in order to be enforceable. If a newly hired employee signs a NCA at the time of hire as a condition of employment, the new job is the consideration for the agreement not to compete in the future. On the other hand, once an employee is already employed, his employer cannot foist an NCA on him and expect it to be enforceable unless new consideration is given (e.g. a special bonus, job protection, promotion, severance benefits, etc.). These basic principles are well established under Pennsylvania law.

But what happens if an employer presents a NCA to a new hire after he accepts a written job offer but before he actually starts work?
Continue Reading You’ve Got the Job, Details Will Follow – Employment Offer Letters & Non-Compete Agreements

U.S. Citizenship and Immigration Services (USCIS) recently released the revised Employment Eligibility Verification Form I-9, which employers are required to use to verify the identity and employment authorization of newly hired employees. Starting May 7, 2013, employers must use the new Form I-9 (with a revision date of 03/08/13) to comply with their employment eligibility verification responsibilities. The new Form I-9 was first published by U.S. Immigration and Customs Enforcement (ICE) on March 8, 2013, and had been authorized for use, along with the previous Form. Now, use of the new Form I-9 will be mandatory.
Continue Reading New Form I-9 Required Beginning May 7

The newly created Consumer Financial Protection Bureau (“CFPB”) recently issued regulations that modify the notices required under the Fair Credit Reporting Act (“FCRA”). The new regulations include one change that is significant to employers who regularly obtain criminal background reports, credit history reports, and other background checks on their applicants and employees.
Continue Reading Employers Required to Use New FCRA Notices come January 1, 2013

This post was contributed by Adam R. Long, a Member in McNees Wallace and Nurick LLC’s Labor and Employment Group and Osazee Imadojemu, a summer associate with McNees. Mr. Imadojemu will begin his third year of law school at George Washington School of Law in the fall, and he expects to earn his J.D. in May…

Thanks to recent headlines about the increase in employers demanding social media passwords of employees and job applicants, employers have gotten a quick lesson on the increased the risks of this practice, especially if the employer neglects to have the proper policies and procedures in place.
Continue Reading Is there a way to safely use social media in the interview process?

There has been a lot of backlash against the practice of employers asking potential employees for their Facebook password. So much so that U.S. senators are calling on the EEOC and the U.S. Department of Justice to launch an investigation to determine whether this practice is lawful. Facebook is also weighing in and threatening legal action against employers who engage in this practice.

In this blog post I provide a brief video update on the Facebook story and describe best practice alternatives to relying on social media in employee hiring.
Continue Reading How to screen job applicants without asking for the Facebook password

This week, Philadelphia Mayor Michael Nutter signed the Fair Criminal Record Screening Standards Ordinance (the "Ordinance").  This “ban the box” legislation is designed to limit Philadelphia employers’ ability to request applicants’ criminal history information in the initial steps of the hiring process. 

  • Who is Covered?  The Ordinance covers any person, corporation, company, labor organization

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The Internal Revenue Service ("IRS") recently released a revised Form 941, the Employer’s Quarterly Federal Tax Return, and related instructions to guide eligible employers in claiming the payroll tax exemption offered under the Hiring Incentives to Restore Employment ("HIRE") Act (H.R. 2847). The HIRE Act offers a tax exemption from having to pay the…