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?
It is difficult to discern whether a judge will enforce a given non-compete agreement. Even though the interests of an employer are important, Ohio courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an excessively long period of time or if they cover an unreasonably large geographic area around West Carrollton.
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?
A West Carrollton, Ohio lawyer can help you review the covenant before you sign any provisions that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can give valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.