Non-Compete Agreement Ohio

Non-compete Agreement Ohio: What You Need to Know

If you`re a business owner in Ohio, chances are you`ve heard of non-compete agreements. These legal contracts are designed to prevent employees from leaving your company and then working for a competitor, where they could potentially use the knowledge and skills they gained while working for you to benefit their new employer.

While non-compete agreements can be an effective way to protect your business, there are also some legal considerations to keep in mind. In this article, we`ll take a closer look at non-compete agreements in Ohio and what you need to know if you`re considering implementing one.

What Is a Non-Compete Agreement?

A non-compete agreement is a legal contract that an employee signs with their employer. This contract typically prohibits the employee from working for a competitor for a certain period of time after leaving the employer`s company.

The purpose of a non-compete agreement is to prevent the employee from sharing confidential information or trade secrets with their new employer, which could be detrimental to the original employer`s business. While non-compete agreements are legal in Ohio, there are some restrictions on how they can be used.

Restrictions on Non-Compete Agreements in Ohio

Ohio law recognizes that non-compete agreements can be restrictive and can limit an employee`s ability to find work after leaving a company. For this reason, there are some restrictions on how non-compete agreements are enforced in the state.

For example, non-compete agreements must be reasonable in scope and duration. The agreement must be written in a way that is not overly broad, and the duration of the agreement cannot be longer than is reasonably necessary to protect the company`s interests.

Additionally, non-compete agreements must be supported by consideration, meaning that the employee must receive something of value in exchange for signing the agreement. This could be a signing bonus, a promotion, or additional training.

When Can a Non-Compete Agreement Be Enforced?

In order for a non-compete agreement to be enforceable, it must be reasonable in scope and duration, and it must be supported by consideration. Additionally, there are some other factors that can impact whether a non-compete agreement can be enforced.

For example, if an employee is terminated without cause, the non-compete agreement may not be enforceable. Similarly, if an employee is asked to sign a non-compete agreement after they have already started working for the company, the agreement may not be enforceable.

It`s also worth noting that non-compete agreements generally cannot be used to prevent an employee from working in a completely different industry. For example, if a software engineer were to leave a technology company, they could not be prevented from working as a teacher at a local school.

Final Thoughts

If you`re considering implementing a non-compete agreement in Ohio, it`s important to work with an experienced attorney who can help you navigate the legal complexities of these contracts. While non-compete agreements can be an effective way to protect your business, it`s important to make sure that your agreement is reasonable in scope and duration, and that it is supported by consideration.

By taking the time to draft a well-constructed non-compete agreement, you can help ensure that your business is protected from the potentially damaging effects of employee competition.