Will my non-compete hold up in Ohio?
It is the question we hear most from people about to change jobs, and the honest answer is “it depends, but probably less than your employer’s letter suggests.”
Ohio has no statute that bans or caps non-competes for most workers. Instead, courts apply a reasonableness test that the Ohio Supreme Court set out in Raimonde v. Van Vlerah in 1975. A non-compete is enforceable only to the extent that it:
- is no broader than necessary to protect a legitimate business interest of the employer;
- does not impose an undue hardship on the employee; and
- is not harmful to the public.
What counts as a legitimate interest
An employer is allowed to protect its trade secrets, confidential information such as pricing and customer lists, and customer relationships that you built on its time and dime. It is not allowed to stop you from competing simply because it would prefer not to have the competition, or to keep you from using general skills and experience you would have gained anywhere.
Time and distance
Judges look hard at how long the restriction lasts and where it applies. One year within the counties where you actually worked is often upheld. Five years across the whole United States, for a sales representative who covered central Ohio, usually is not.
Ohio courts do not have to throw out an unreasonable non-compete entirely. They can, and often do, rewrite it to something reasonable and enforce that. So an overbroad agreement is not a free pass; it may simply be trimmed back.
Before you sign
If you are negotiating a new job, this is the moment you have the most leverage. Ask for:
- a shorter period, or one that applies only if you are fired for cause or resign;
- a narrower definition of “competitor,” ideally a named list;
- a non-solicitation clause in place of a full non-compete;
- pay during the restricted period if the employer wants to enforce it.
After you have left
If you receive a letter from a former employer’s lawyer, do not ignore it and do not reply in anger. Keep every document you took with you separate and untouched (better, return it), and talk to a lawyer before you answer. Many of these disputes end with a short letter agreeing on what you will and will not do.
We review non-competes for a flat fee. See what to expect and fees for details.
This article is general information about Ohio law as of the date above. It is not legal advice for your situation. If you have a specific question, talk to us.