What You Need to Know About the Enforceability of Non-Compete Agreements in Ohio
In Ohio, non-compete agreements must be considered reasonable to be enforced. Here’s everything you need to know about how non-compete agreements are enforced in Ohio.
Non-compete agreements prevent an employee from competing with a former employer after leaving the company. The enforceability of non-compete agreements is decided on an individual basis in Ohio.
What is a Non-Compete Agreement?
Non-compete agreements are contracts between employers and employees that place restrictions on what an employee may do after leaving the company. These restrictions ensure that an employee will not enter into competition with their employer after their employment period is over. They are also intended to protect trade secrets during or after employment. Most non-competes specify a certain length of time or geographical area in which an employee may not work with a competitor or clients after leaving their employer.
Ohio Non-Compete Laws
In Ohio, the enforceability of non-compete agreements is decided on an individual basis. Employers are allowed to require a non-compete agreement as a mandatory condition of employment in Ohio. If an employee breaks an enforceable non-compete the employer can sue for a violation of their contract. Ohio courts decide whether or not a non-compete is valid based on how reasonable it is. Reasonability is often decided based on three things:
The limitations stated are no greater than what is required to protect the employer’s legitimate business interest.
It does not impose an undue hardship on the employee.
It is not injurious to the public.
Related: Non-Compete Laws By State
Do Non-Compete Agreements Hold Up in Ohio Courts?
Non-compete agreements only hold up in Ohio courts if it is decided the agreement is reasonable. Apart from determining if the limitations are no greater than what is necessary to protect the employer, there are a few other things courts will look at before deciding if a non-compete is enforceable. These factors may include whether or not the agreement imposes an undue hardship on the employee, and whether it causes harm to the public.
Some things courts will consider when determining the enforceability of a non-compete agreement are the geographical and time limitations, how many employees interact with the same clients, or if an employee learned any confidential information or trade secrets during their employment. If there is any disproportionate benefit to either party or the agreement will halt an employee’s ability to grow their skills or pursue a career, it may be enough to invalidate or amend the agreement.
How to Get Out of an Ohio Non-Compete Agreement
If an individual signed a non-compete agreement during their employment it may be difficult to find another job unless they can legally leave that agreement. Although non-competes are valid ways to protect an employer’s company, they can control an employee’s mobility and prevent them from furthering their career. To leave a non-compete agreement in Ohio, the court must decide that the agreement is unreasonable.
Related: Are Non-Compete Agreements Enforceable in Texas?
If an employee has proof that they have not learned any trade secrets or that the limitations are too broad to allow them to find other work, there is a good chance they will be able to invalidate the agreement. It is best to consult with an employment attorney to review the terms of an individual’s non-compete agreement and determine what legal options are available.
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