Non Compete Agreement Ohio

Non-Compete Agreements in Ohio: What You Need to Know

If you are an employer or employee in Ohio, you may be wondering about non-compete agreements and how they work in the state. A non-compete agreement is a contract between an employer and employee that restricts the employee from working for a competitor or starting a competing business for a certain period of time after leaving their current job.

Ohio has specific laws regarding non-compete agreements that both employers and employees should be aware of to ensure they are following the proper guidelines.

Enforceability in Ohio

In Ohio, non-compete agreements are generally enforceable as long as they are reasonable in scope, duration, and geographic area.

The scope of the agreement must not be overly broad and should be limited to the specific type of work the employee has done for the employer. The duration of the agreement should also be reasonable, usually no more than a year or two after the employee leaves their job. Finally, the geographic area must be reasonable and limited to where the employer does business.

If a non-compete agreement is too expansive in any of these areas, it may be deemed unenforceable in court.

Consideration

Another important aspect of non-compete agreements in Ohio is consideration. In order for the agreement to be enforceable, the employee must receive something of value in exchange for signing the agreement.

This could be in the form of a signing bonus, promotion, or access to confidential information. Without proper consideration, the agreement may not be enforceable in court.

Employee Rights

It is important for employees to understand their rights when it comes to non-compete agreements in Ohio. In some cases, employees may be asked to sign an agreement that is not reasonable in scope, duration, or geographic area.

If an employee is asked to sign an agreement that seems overly restrictive, they may want to consult with an employment attorney to ensure their rights are protected.

Conclusion

Non-compete agreements are an important aspect of many employment contracts in Ohio. Employers and employees should be aware of the state laws surrounding these agreements to ensure they are reasonable and enforceable.

If you have questions about non-compete agreements in Ohio, it may be helpful to consult with an attorney who specializes in employment law.