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. While employer's interest are significant, the courts of Ohio also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. A court will usually hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Delphos that is excessively large.
Non-compete clauses are also limited in that they can only apply to competitors who are reasonably related to the industry of the employer. Finally, an employer is required to have a valid business reason in its motivation for imposing a covenant not to compete on an employee.
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 Delphos, Ohio lawyer to review any documents. 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. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one about whether they can accept a different job.