Ohio Employee Restrictive Covenants

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Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.

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FAQ

North Carolina This state adheres to the strict blue pencil doctrine, such that courts may not rewrite the covenant, but sever overbroad provisions and enforce the remainder. Ohio This state follows the ?reasonable alteration? approach, in which courts have discretion to modify an overbroad covenant.

Under Ohio law, noncompetition contracts are generally enforceable if they are reasonable.

While non-competition agreements are legal in Ohio, they are scrutinized carefully by the courts. Such restrictive covenants are lawful if the restraints are reasonably necessary to protect the employer's legitimate business interests.

An Ohio Standard Clause limiting an employee's solicitation of employees and customers during the term of the employee's employment and for a specified period of time after the employment relationship ends.

Finally, while your HOA can't place restrictive covenants that violate state or federal laws, they can still limit your rights within reason.

The most common types of post-employment restrictive covenants include non-competition clauses and restrictions prohibiting the solicitation of customers/ clients and employees, each of which are in effect both during the employment relationship and for defined period thereafter (e.g. six months).

Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...

Under Ohio law, noncompetition contracts are generally enforceable if they are reasonable. The question of what's reasonable is a very fact-specific one though. It depends on the particular circumstances of a given situation, and the Ohio Supreme Court has set out a legal test for courts to apply.

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Ohio Employee Restrictive Covenants