Generally speaking, in Ohio, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors upon leaving the company. Such agreements are also known by the term "non-compete clauses". Compensation may be paid for employees who sign the covenant, or at times the employment may be conditioned upon such an agreement.
When are Covenants not to Compete Unenforceable?
Whether a given judge will enforce a non-compete agreement is difficult to know in advance. Although the interests of employers are important, courts in Ohio also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. A court will typically hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Akron that is excessively large.
Covenants must also be limited to restricting dealings with those competitors that are rationally related to the employer?s industry. Lastly, there must be a legitimate business interest which motivates the employer's mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Since covenants could restrict your rights, you may wish to hire a Akron, Ohio lawyer to review any provisions. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. A lawyer can also render useful advice for employers who are considering suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.