What legal actions can be taken if an employee violates their non-compete agreement in Ohio?

Potential legal actions that can be taken if an employee violates their non-compete agreement in Ohio include the following:

1. Injunctive Relief: The employer can seek an injunction from the court to stop the employee from engaging in any activities that violate the non-compete agreement. The employer can file a lawsuit against the employee asking the court to order the employee to cease the activity.
2. Monetary Damages: The employer may also be entitled to monetary damages for any harm caused by the employee’s violation of the non-compete agreement. Damages may include lost profits, lost business opportunities, and the cost of hiring and training additional employees.
3. Liquidated Damages: Many non-compete agreements include a provision for liquidated damages. This is a predetermined amount of money that the employee is required to pay the employer if they violate the non-compete agreement. The amount may be set at a specific amount, like a year’s salary or at a percentage of the revenue that the employee generated during the violation.
4. Breach of Contract Lawsuit: The employer may also be able to sue the employee for breach of contract if the non-compete agreement is deemed enforceable by the court.

In Ohio, non-compete agreements are enforceable only if they meet the following requirements:

1. The restriction is necessary for the protection of the employer
2. The restriction is reasonable in terms of time, geographic area, and scope
3. The restriction does not adversely affect the public interest
4. The restriction is supported by consideration

Employers should also keep in mind that non-compete agreements are considered a restraint on trade and will be strictly construed against the employer. They should be drafted narrowly to avoid any potential legal challenges.

If an employee violates a non-compete agreement, the employer should seek legal counsel to determine their options. They may need to file a lawsuit or seek an injunction to prevent the employee from continuing to violate the agreement. The employer should also document the violation and keep any evidence that can be used in court.