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Ohio Non-Compete Agreement Template

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Ohio Non-Compete Agreement Template

Updated February 29, 2024

An Ohio non-compete agreement allows an employer to restrict its competition by limiting an employee’s ability to work in the same business. A non-compete must contain geographical limitations, time restrictions, and cannot overreach or be unreasonably restrictive to an employee while protecting the business.

Legally Enforceable?

Yes, a non-compete is enforceable in Ohio. The Supreme Court ruled the following:[1]

“Ohio has recognized the validity of agreements that restrict competition by an ex-employee if they contain reasonable geographical and temporal restrictions.”

3 Rules

A non-compete is enforceable if:[2]

  1. The restraint is no greater than is required for the protection of the employer;
  2. Does not impose undue hardship on the employee; and
  3. Is not injurious to the public.

Attorneys (prohibited)

An attorney cannot enter into a non-compete or any similar agreement that prohibits them from practicing law.[3]

Continued Employment

A non-compete agreement with the promise of continued employment is deemed as sufficient consideration.[1]

Time and Geography Restrictions

5 years has been deemed reasonable if the geographical area is a city or town.[4]

Blue Penciling

If a non-compete is written to be overbroad or unreasonable a court may enforce the reasonable portions. The court expressly states:[2]

“The “blue pencil” test provides that if unreasonable provisions exist in such a contract, they may be stricken, if divisible, but not amended or modified.”