Are Non-Compete Agreements Enforceable in Ohio?

Non-compete agreements are a common feature of employment contracts in Ohio, yet they often leave employees uncertain about their rights and future opportunities. These agreements, while designed to protect employers, can potentially restrict an employee’s ability to earn a living after leaving their job. Understanding how a non-compete agreement is enforced in Ohio is important for any employee who has signed—or is being asked to sign—one. Marshall Forman & Schlein LLC is dedicated to your employee rights in these circumstances and can help you recognize your options.

Ohio’s Legal Framework for Non-Compete Agreements

Ohio law allows non-compete agreements if they meet specific criteria. Courts will enforce these agreements if they are deemed “reasonable.” The reasonableness of a non-compete agreement depends on its terms and how they balance the legitimate business interests of an employer with fairness to the employee and the public. Below, we break down the key factors Ohio courts assess when determining enforceability.

1. Duration of the Agreement

The length of time a non-compete agreement remains in effect is an important factor in deciding its enforceability. Ohio courts generally view durations of six months to two years as reasonable, provided they align with the employer’s interests. Agreements exceeding this time frame may face greater scrutiny, as prolonged restrictions can significantly hinder an employee’s ability to find comparable work.

2. Geographic Scope

Geographic restrictions in non-compete agreements must also be reasonable. For example, the agreement may limit an employee from working for a competitor within a specific city, county or region. Courts closely examine the size of this restricted area, and overly broad clauses—such as nationwide or global restrictions—are often deemed unreasonable, unless the nature of the business makes such a scope essential.

3. Undue Hardship on the Employee

Another consideration is whether the non-compete clause imposes an undue hardship on the employee. If the restriction prevents the individual from finding a new job in their field or forces them to make significant sacrifices, courts are more likely to find the terms unfair. Employees in a unique profession may have a greater chance of challenging such agreements, as enforcing them could severely impact their ability to earn a living.

4. Legitimate Business Interests

Employers use non-compete agreements to safeguard trade secrets, confidential information or customer relationships. Courts are inclined to enforce these agreements if they clearly protect legitimate business interests rather than unjustly limiting fair competition. For example, if an employee has access to sensitive client lists or proprietary processes, restrictions may be upheld to prevent unfair competition.

Ohio’s “Blue-Pencil Doctrine”

Even if a court finds parts of a non-compete agreement unreasonable, it doesn’t render the entire agreement invalid. Ohio courts can modify the terms to make them reasonable using the “blue-pencil doctrine.” For example, an overly broad geographic restriction could be adjusted to cover a smaller region instead of nullifying the entire clause.

Contact Marshall Forman & Schlein LLC Today

Navigating non-compete agreements can be daunting, especially with so much at stake for your career and financial stability. At Marshall Forman & Schlein LLC, we have over 50 years of combined experience in employment law and a track record of helping employees understand non-compete agreements. If you are facing an agreement that seems unreasonable or are unsure of your rights, don’t leave your future to chance. Contact our team today for a free consultation and personalized guidance on how to protect your rights and livelihood.