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.
Laws
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]
- The restraint is no greater than is required for the protection of the employer;
- Does not impose undue hardship on the employee; and
- 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.”