Who this page is for: owners and managers of small and mid-sized businesses that hire employees in Pennsylvania. Kostrub Law Firm, PLLC works on the employer side of employment law.
An employment contract lawyer helps you put clear terms in writing before you hire, so you can avoid wage claims and disputes later. We prepare offer letters, employment agreements, restrictive covenants, and handbooks for employers in Washington and Allegheny counties. This is part of our wider legal support for small businesses.
What happens after you call: we ask about your workforce and your most pressing question, then schedule time to review your current documents.
What employment law is for employers
Employment law covers the rules between a business and the people it pays. For employers, the main documents are:
- Offer letters. A short letter stating job title, pay, start date, and that employment is at-will (either side may end it at any time for a lawful reason).
- Employment agreements. Longer contracts for key hires that set term, duties, pay, bonus rules, and what happens on termination.
- Restrictive covenants. Clauses that limit a worker after they leave. These include non-competes (no working for a competitor), non-solicitation clauses (no taking clients or staff), and confidentiality terms.
- Employee handbooks. Written policies on pay periods, time off, conduct, and complaint procedures. An employee handbook attorney makes sure the handbook does not accidentally create a contract you did not intend.
Pennsylvania law that matters
- Non-competes under Pennsylvania case law. Pennsylvania courts enforce a non-compete only if it is tied to employment, supported by consideration (something of value given in exchange), reasonably necessary to protect a real business interest, and reasonable in time and geography. In Socko v. Mid-Atlantic Systems of CPA, Inc., 126 A.3d 1266 (Pa. 2015), the Pennsylvania Supreme Court held that a non-compete signed after work begins needs new consideration, such as a raise or promotion. Continued employment alone is not enough.
- Health care non-competes, Act 75 of 2024. Pennsylvania now limits non-competes for many health care practitioners, for agreements entered on or after January 1, 2025.
- Trade secrets, 12 Pa.C.S. § 5301 et seq.. The Pennsylvania Uniform Trade Secrets Act protects confidential business information even without a non-compete, if you take reasonable steps to keep it secret.
- Wage Payment and Collection Law (WPCL), 43 P.S. § 260.1 et seq.. You must pay earned wages on regular paydays, and final wages by the next regular payday. Unpaid wages can bring liquidated damages (an added penalty amount) and the employee’s attorney fees. Bonus and commission terms in your offer letter may count as wages under this law.
- Pennsylvania Minimum Wage Act, 43 P.S. § 333.101 et seq.. This sets state minimum wage and overtime rules. Its overtime regulations can differ from federal law, so meeting federal rules alone may not be enough.
- Pennsylvania Human Relations Act (PHRA), 43 P.S. § 951 et seq.. The PHRA bars discrimination and generally applies to employers with four or more employees. That is a much smaller threshold than many federal laws. Workers usually file first with the Pennsylvania Human Relations Commission.
Common situations in Washington and Allegheny counties
- Energy service crews. A Washington County oilfield services company pays day rates and wonders whether its overtime approach fits Pennsylvania rules.
- Key sales hires. A Pittsburgh distributor wants a non-solicitation clause so a departing sales rep cannot take its accounts.
- Growing practices. A Canonsburg professional office reaches four employees and becomes subject to the PHRA. Owners at this stage often also need to finish their company setup and ownership paperwork.
- Mid-employment non-competes. An Upper St. Clair company asks current staff to sign new non-competes and needs to know what to offer in exchange.
- Contractor or employee? A Bethel Park contractor pays workers as independent contractors. If the workers really act like employees, wage and tax problems can follow. Our contract drafting and review page covers independent contractor agreements.
What happens if you don’t act
Missing or outdated paperwork can cost an employer in several ways:
- A non-compete with no fresh consideration may be thrown out, leaving your client list unprotected.
- Vague bonus language in an offer letter can turn into a WPCL claim with added damages and fees.
- Treating employees as contractors can lead to back wages, back taxes, and penalties.
Hiring soon or rewriting your handbook? Call (304) 982-1586 · Request a consultation · After you call, we ask about your staff size and documents, then schedule a review.
How we handle it, step by step
- Understand your workforce. Headcount, job types, pay structure, and where people work.
- Review current documents. Offer letters, agreements, handbooks, and any signed covenants.
- Flag the gaps. We list issues by risk, starting with wage and pay terms.
- Draft or revise. We prepare templates you can reuse, written for your business.
- Plan the rollout. For new covenants, we discuss what consideration to offer current employees.
What to bring to your first meeting
- Your current offer letter and any employment agreement templates
- Signed non-compete, non-solicitation, or confidentiality agreements
- Your employee handbook or written policies
- A summary of pay practices: salaried, hourly, day rate, bonus, commission
- Any demand letter, agency charge, or wage complaint you have received
Fees
We explain our fee approach before we begin.
Who handles this
Employment matters for employers are handled by Daniel B. Kostrub and Heather N. Kostrub. The firm has worked with clients in the region since 2006.
- Daniel B. Kostrub concentrates on energy law and oil and gas transactions. Visit Daniel Kostrub’s bio.
- Heather N. Kostrub focuses on estate planning and family and business succession. Visit Heather Kostrub’s bio.
Frequently asked questions
Are non-compete agreements enforceable in Pennsylvania?
Yes, if they are reasonable. Pennsylvania courts look at whether the non-compete protects a real business interest, such as customer goodwill or trade secrets, and whether its length and geographic reach are reasonable. It must also be supported by consideration. Courts can narrow an overly broad covenant or refuse to enforce it.
Can I make a current employee sign a non-compete in Pennsylvania?
You can ask, but you must give something new in return. Under Pennsylvania case law, keeping the job is not enough consideration for a non-compete signed after employment starts. A raise, bonus, promotion, or other real benefit is typically needed. Document what you gave and why.
Does Pennsylvania require employers to have an employee handbook?
No state law requires a handbook. But a handbook helps you show employees your pay rules, time-off policies, and how to report harassment. It should include clear language that it is not a contract, so you keep flexibility to change policies.
Is Pennsylvania an at-will employment state?
Yes. In general, either the employer or the employee can end employment at any time for any lawful reason. Exceptions include written contracts that promise a set term, discrimination and retaliation laws, and certain public-policy protections. Your offer letter should state at-will status clearly.
How soon must I pay a final paycheck in Pennsylvania?
Under the Wage Payment and Collection Law, final wages are generally due by the next regular payday after employment ends. Late or missing wages can lead to added damages and attorney fees. Check whether accrued bonuses, commissions, or paid time off count as wages under your written policy.
What is the difference between an employment contract and an offer letter?
An offer letter is short and usually confirms at-will employment, pay, and start date. An employment contract is longer and may set a term, severance, bonus formulas, and restrictive covenants. Key hires and senior staff often get full contracts. Most other workers get offer letters.
Put your employment documents in order
Call (304) 982-1586 or set up a meeting with our office. After you call, we learn about your workforce and goals, then review your offer letters, agreements, and handbook with you. Service area: Pittsburgh, Cecil Township, and Washington and Allegheny counties. Hours: Monday–Friday, 7:00 a.m.–7:00 p.m..
This page is general information, not legal advice. Reading it does not create an attorney-client relationship.