What is a noncompete agreement?
A noncompete is an agreement, usually between an employer and an employee, in which the employee agrees not to engage in any activities that compete with the employer’s line of business, both during the person’s employment and for some period of time after the employment relationship has been terminated. However, noncompete clauses are also used in a variety of other business contracts. For example, we have seen noncompete clauses used in operating agreements to prohibit business partners from starting a competing business venture on the side. Noncompete clauses are also used in business purchase agreements to prevent the sellers of a business from starting a new business that competes with the one they just sold.
Are noncompete agreements enforceable?
In Ohio, noncompete agreements are generally enforceable as long as they are “reasonable.” So what makes a noncompete agreement reasonable in Ohio?
How do I protect my business if a noncompete clause isn’t appropriate?
Not every employment situation calls for a noncompete agreement or clause. Instead, your business might consider using a non solicitation agreement to prohibit current and former employees from soliciting your customers, clients, key vendors, etc.
Learn more about Non Solicitation Agreements and how they differ from Noncompete Agreements and NDAs.