What should I include in the non-compete agreement for my employees in Ohio?
As a lawyer, I can advise on the elements that should be included in a non-compete agreement for employees in Ohio. Non-compete agreements are legal contracts that prohibit an employee from working for a competitor or starting a competing business for a specified duration after leaving their current employment.
To create a valid non-compete agreement in Ohio, the employer must have a legitimate business interest in enforcing the agreement. The interest could be protecting confidential information, client relationships or protecting trade secrets. There must also be reasonable time and geographic restrictions in the contract to prevent it from being considered overly broad or unreasonable.
The following are some essential elements that should be included in a non-compete agreement for Ohio employees:
- Scope of the agreement: The agreement should specify the nature and extent of the restrictions on the employee's post-employment activities. For example, the agreement could restrict the employee from working for a competitor or soliciting the employer's clients or customers.
- Time and geographic restrictions: The duration of the restriction and the geographic area must be reasonable to be enforceable. Ohio courts have generally held that restrictions of up to 18 months are reasonable, while geographic restrictions must be limited to the area where the employer does business.
- Consideration: The non-compete agreement must provide consideration, which could be in the form of a promotion, a bonus, a salary increase, or something of value given to the employee in exchange for signing the agreement.
- Confidentiality and non-solicitation clauses: Confidentiality and trade secret clauses should prohibit the employee from disclosing business secrets or confidential information. Non-solicitation clauses should prevent the employee from soliciting the employer's clients or other employees.
- Enforceability and consequences of breach: The agreement should include a clause that addresses the consequences of breach and the remedy for enforcement. In Ohio, courts generally require that the remedy sought must be no greater than necessary to protect the employer's legitimate interest.
It is essential to seek legal assistance from an attorney experienced in writing non-compete agreements to ensure that the agreement is appropriately drafted and enforceable. The attorney can also advise on restrictions or limitations specific to the employer's business, industry, or location.