In Ohio, non-compete agreements are generally allowed between an employer and employee, as long as they meet certain requirements. To be enforceable, the agreement must be supported by consideration, meaning the employee must receive something of value in return for their agreement not to compete. Additionally, the non-compete agreement must be reasonable in scope, duration, and geographic area.
Ohio courts have established several factors to determine if a non-compete agreement is reasonable. These factors include the nature of the employer's business, the geographic area to which the restriction applies, the duration of the restriction, and the trade secrets or confidential information that the agreement seeks to protect.
In terms of duration, Ohio courts have found that a non-compete agreement lasting up to two years is generally reasonable, while restrictions longer than that may be considered too long. As for geographic area, the restriction must be limited to the area where the employer has a legitimate interest in protecting their business or trade secrets.
It's important to note that Ohio courts will not enforce non-compete agreements that are overly broad or punitive. Courts have struck down agreements that restrict an employee from working in an entire industry or in any capacity, or that do not provide adequate compensation or other benefits in exchange for the restriction.
If you are an employer considering implementing a non-compete agreement, it's important to carefully consider the scope, duration, and geographic limitations of the agreement to ensure it meets Ohio's legal requirements. And if you are an employee who has been asked to sign a non-compete agreement, it's crucial to review the terms carefully and seek legal advice before signing to ensure you fully understand your rights and obligations.
By
