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Ohio Non-Solicitation Agreement

An Ohio non-solicitation agreement is a contract between an employer and an employee that prevents the latter from commercially using the former's clients, employees, contractors, and other professional relationships after they leave the company. The agreement is used to protect the employer's business interests from direct competitors.
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Is It Legally Enforceable in Ohio?

Yes. Non-solicitation agreements are legally binding in Ohio, although there is no specific state statute governing them.

The courts use the test of “reasonableness” to determine whether to enforce a non-solicitation agreement. This means that they can consider the agreement’s time and geographical limitations, as well as a host of other factors, to determine whether it is reasonable.[1]

Types of Solicitation to Prohibit

In Ohio, a non-solicitation agreement can be used to restrict an employee from recruiting, hiring, or contacting the employer’s:

  • Former or current clients
  • Former or current employees
  • Independent contractors
  • Suppliers, associates, etc.

What to Include

What should you include in a non-solicitation agreement.

Under Ohio’s case law, a non-solicit covenant must include reasonable limitations with regard to the following:

1. Time Restraint

A non-solicitation agreement usually goes into effect when the employee’s job with the employer is terminated. The duration of the contract must be considered reasonable by a court of law.

2. Geographical Restraint

The agreement should specify the location or area where the terms of the agreement apply. Typically, it is limited to the city or county where the employer is based.

3. Specific Action

This section defines the acts that the individual is restricted from engaging in, whether it’s soliciting specific clients or recruiting the employer’s personnel.

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