Are non-compete agreements enforceable in Ohio?
1. Baseline Rule. Ohio has no governing statute; Raimonde v. Van Vlerah, 42 Ohio St. 2d 21 (1975), is the controlling decision. A non-compete is enforceable to the extent it (a) protects a legitimate interest of the employer, (b) does not impose undue hardship on the employee, and (c) is not injurious to the public.
2. Reasonableness Factors. Courts examine the absence or presence of limitations on time and space; whether the employee represents the sole contact with customers; whether the employee possesses confidential information or trade secrets; whether the covenant seeks to eliminate unfair competition versus ordinary competition; whether it stifles the employee's inherent skill; the disproportion of restraint to the employer's interest; whether the covenant bars the employee's sole means of support; whether the employee learned the skills before or during employment; and whether the forbidden employment is incidental to the main employment.
3. Consideration. Continued at-will employment is sufficient consideration in Ohio, distinguishing it from Pennsylvania and Illinois.
4. Wage Thresholds. None.
5. Blue Pencil / Reformation. Ohio courts actively reform overbroad covenants. Under Raimonde, the court may modify and enforce to the extent reasonable.
6. Industry Carve-Outs. Lawyers barred by Ohio RPC 5.6. Physicians: enforceable but subject to public-interest scrutiny under Ohio Urology, Inc. v. Poll, 72 Ohio App. 3d 446 (1991). Broadcasters: no statute.
7. FTC Rule. Enjoined nationwide by Ryan LLC v. FTC (E.D. Tex. Aug. 2024); on appeal.
8. Garden Leave / Forfeiture-for-Competition. Permitted; forfeiture-of-deferred-compensation provisions widely upheld.
9. Choice of Law. Ohio courts apply Ohio law where another state's law violates Ohio public policy on reasonableness or where the employee is an Ohio resident performing work in Ohio.
This is legal information, not legal advice.
- Your covenant has no geographic limit or covers the entire United States
- Employer seeks injunctive relief in Ohio common pleas court
- You are a physician and the covenant would deprive patients of access to care
- Raimonde v. Van Vlerah, 42 Ohio St. 2d 21 (1975)
- Lake Land Employment Group v. Columber, 101 Ohio St. 3d 242 (2004)
- Ohio Urology, Inc. v. Poll, 72 Ohio App. 3d 446 (1991)
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.