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[OH] Is a non-compete agreement enforceable if it covers nationwide competition?

Andrew F., Esq.
Andrew F., Esq.

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In Ohio, non-compete agreements are evaluated under a reasonableness standard established by Ohio courts. A restriction is generally enforceable only if it protects a legitimate business interest of the employer and is reasonable in time, geographic scope, and the type of activities restricted. Courts often accept non-compete periods of around one year, but the geographic scope is scrutinized closely. A restriction covering "anywhere the company does business" can sometimes be considered overly broad if it effectively prevents an employee from working in their field nationwide, especially if the employee's role was limited to a specific region or client base.

Ohio courts aim to balance the employer's need to protect confidential information, trade secrets, or customer relationships with the employee's right to continue working in their profession. (OH Rev Code § 1333.61)

Ohio also follows what is often called the "blue-pencil" or modification doctrine, meaning that if a court finds a non-compete too broad, it may modify the agreement to make it reasonable rather than invalidate it entirely. For example, a court might limit the restriction to the territory where the employee actually worked or to specific customers the employee had contact with. This reasonableness test and modification doctrine trace back to the Ohio Supreme Court's decision in Raimonde v. Van Vlerah (1975), which remains the controlling case for how Ohio courts analyze non-compete enforceability.

The enforceability of the clause often depends on the employee's duties, such as whether they had access to sensitive business information or significant customer relationships, and whether the new job would involve directly competing or using protected information. Because employers sometimes seek injunctions to enforce non-competes, reviewing the exact language of the agreement and the nature of the proposed new role is important before moving to a competitor.

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I signed a non-compete with my current employer, in the state of Ohio. It has a 1 year restriction on competing in the same business, anywhere they do business (which is effectively nationwide). Is this enforceable?

Lexi

Lexi, Chatbot

I understand that dealing with a non-compete agreement can be stressful. Can you share how long you've been employed with your current employer?

14 months.

Lexi

Lexi, Chatbot

Have you had any discussions with your employer about your concerns regarding the non-compete agreement?

No.

Lexi

Lexi, Chatbot

Is there anything else the Employment Lawyer should know before I connect you? Rest assured they'll be able to help with your non-compete agreement.

No.

Andrew F., Esq.

Andrew F., Esq.

Good day and welcome. Please give me a moment to review your question. Just so you are aware, this is a legal information only site. I do not provide representation and no attorney-client relationship is formed. My answers and comments should not be considered legal advice. It is always best to hire a local attorney to review the specifics of your particular case to ensure that a proper review is conducted.

Andrew F., Esq.

Andrew F., Esq.

In Ohio, non-compete agreements are evaluated under a reasonableness standard established by Ohio courts. A restriction is generally enforceable only if it protects a legitimate business interest of the employer and is reasonable in time, geographic scope, and the type of activities restricted. Courts often accept non-compete periods of around one year, but the geographic scope is scrutinized closely. A restriction covering "anywhere the company does business" can sometimes be considered overly broad if it effectively prevents an employee from working in their field nationwide, especially if the employee's role was limited to a specific region or client base.

Ohio courts aim to balance the employer's need to protect confidential information, trade secrets, or customer relationships with the employee's right to continue working in their profession. (OH Rev Code § 1333.61)

Ohio also follows what is often called the "blue-pencil" or modification doctrine, meaning that if a court finds a non-compete too broad, it may modify the agreement to make it reasonable rather than invalidate it entirely. For example, a court might limit the restriction to the territory where the employee actually worked or to specific customers the employee had contact with. This reasonableness test and modification doctrine trace back to the Ohio Supreme Court's decision in Raimonde v. Van Vlerah (1975), which remains the controlling case for how Ohio courts analyze non-compete enforceability.

The enforceability of the clause often depends on the employee's duties, such as whether they had access to sensitive business information or significant customer relationships, and whether the new job would involve directly competing or using protected information. Because employers sometimes seek injunctions to enforce non-competes, reviewing the exact language of the agreement and the nature of the proposed new role is important before moving to a competitor.

Does that make sense?

Yes

Andrew F., Esq.

Andrew F., Esq.

Great, best of luck to you, my friend.

Can I provide the agreement for review?

Andrew F., Esq.

Andrew F., Esq.

I can't perform a full legal document review here, my friend.

Where can I get that done?

Andrew F., Esq.

Andrew F., Esq.

If you are looking for local representation, the American Bar Association has a fantastic lawyer referral service where you can narrow by subject area and location. As a reminder, we provide general questions & answers for educational purposes and not formal representation.

Andrew F., Esq.

Andrew F., Esq.

42 satisfied customers

Andrew F., Esq.
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