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An Ohio non-compete agreement is a type of employment contract that utilizes restrictive covenants. Companies use to prevent former employees from leaking information on their business practices, revealing trade secrets, and creating an environment of unfair competition. Non-compete agreements restrict the actions of an employee once their employment relationship ends. Usually, The terms of the non-competition agreements include restrictions such as the former employee refraining from taking a new job with a competing company or other business in the same industry for a period of time. Non-compete agreements may also have geographic restraints, prohibiting the employee from working for similar companies within a geographic radius.
A non-compete agreement may be its own contract. However, an employment agreement may also contain a non-compete clause. To protect the employer and the employer's legitimate business interests, business owners should seek legal counsel from a law firm that practices employment law. The enforceability of non-compete agreements in Ohio trial courts is imperative for protecting a business’s legitimate interests. A law firm can help ensure that Ohio law is followed when drafting the agreement and that a reasonable length of time and geographic area is used and the information about the employer's customers remains protected.
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In Ohio, non-compete agreements must be mindful not to cause an undue hardship on the employee than necessary to protect the company’s interests. It also may not violate public policy. In Ohio, it is legal for at-will employment situations involving non-competes to be terminated and for non-compete agreements to remain enforceable as long as the provisions in the agreement are considered reasonable. Ohio courts typically do not support non-competes with time restrictions greater than two years. They also generally do not support geographic restrictions that are overly broad.
Protect your Ohio business by also using an Ohio non-disclosure agreement form. Download an Ohio non-disclosure agreement form now!
To write an Ohio non-compete agreement, include the following clauses:
Each party should sign and print their name. Each signature should also be dated. A copy of the executed agreement should be provided to each party for their records.
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