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 when leaving the company. Such agreements are also known by the term "non-compete clauses". Compensation might be paid for employees who sign the covenant, or at times the employment might be conditioned upon such an agreement.
When are Covenants not to Compete Unenforceable?
It is difficult to foresee whether a judge will enforce a given non-compete agreement. While the employer?s interests are significant, Ohio courts place great weight on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an unusually long period of time or if they cover an unreasonably large geographic area around North Canton.
The agreements must also deal only with those competitors whose line of employment is reasonably related to the previous employer's. Finally, there must be a valid 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?
A North Canton, Ohio lawyer can help you review the covenant before you sign any documents that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one regarding whether they can accept a different job.