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Employment Law: Ohio and Federal: Noncompetes

Introduction

The new FTC rule on non-competes would have made most non-compete clauses illegal. However, it has been preliminarily enjoined by a federal court in Texas, and the Trump administration is not defending it.

 A non-compete in Ohio is a contract between an employer and employee that states that the employee cannot compete with the employer after termination. Although there are no Ohio Revised Code sections dealing with non-competes in Ohio, case law dictates that a non-compete agreement must be “reasonable” in order to protect the employee.

A reasonable non-compete agreement in Ohio must:

  • Be no greater than is required for the employer’s protection of a legitimate interest 
  • Not impose an undue hardship on you 
  • Not be injurious to the public 

Books

Proposed Ohio Law

Ohio Case Law

Law Review Article

CFR