Ohio Non-Compete Agreement Template: What You Need to Know
If you are a business owner in Ohio, the chances are you have considered or already implemented non-compete agreements for your employees. Non-compete agreements are legal contracts that prevent employees from competing with their former employers for a certain period after leaving the company. These agreements are commonly used to protect trade secrets and customer relationships. However, creating a non-compete agreement that is enforceable and compliant with Ohio law can be a daunting task. That`s why we have created this guide and included a sample Ohio non-compete agreement template to help you get started.
What is a Non-Compete Agreement?
A non-compete agreement, also known as a covenant not to compete, is a legal contract that restricts an employee`s ability to work for a competing company or start a competing business for a certain period after leaving their current employer. These agreements are used to protect a company`s interests, such as its trade secrets, customer relationships, and proprietary information.
Ohio Non-Compete Agreement Requirements
In Ohio, non-compete agreements are governed by state law. To be enforceable, your non-compete agreement must meet certain requirements, including:
1. Consideration: your employee must receive something of value in exchange for signing the agreement, such as a job offer, promotion, or bonus.
2. Reasonable restriction: the agreement must restrict your employee`s activities only to the extent necessary to protect your legitimate business interests.
3. Limited duration: the agreement must have a reasonable duration, typically no longer than 18 months.
4. Geographic scope: the agreement must be limited to a geographic area where your company has legitimate business interests.
5. Notice: you must provide your employee with notice of the non-compete agreement before or at the time of hiring.
Ohio Non-Compete Agreement Template
To help you get started, we have created a template Ohio Non-Compete Agreement that you can customize to fit your business needs.
NON-COMPETE AGREEMENT
This Non-Compete Agreement (the “Agreement”) is entered into on [date] by and between [company name], with its principal place of business at [address] (“Company”), and [employee name], with an address at [address] (“Employee”).
WHEREAS, Employee is employed by Company in a position that requires access to confidential information and customer relationships that are critical to Company`s success; and
WHEREAS, Company has a legitimate business interest in protecting its confidential information and customer relationships;
NOW, THEREFORE, the parties agree as follows:
1. Non-Competition. Employee agrees that during the term of their employment and for a period of [length of time] after termination of employment (the “Restricted Period”), Employee will not, directly or indirectly, engage in any business activity that is in competition with Company within [geographic area]. This restriction will not apply to any business activity that is not in competition with Company.
2. No Solicitation. During the Restricted Period, Employee will not, directly or indirectly, solicit, induce, or attempt to solicit or induce any of Company`s customers or suppliers, or any of Company`s employees to terminate their employment or engage in business with any other person or entity engaged in a competitive business.
3. Confidential Information. Employee acknowledges and agrees that during their employment, they will have access to and become familiar with confidential information, including trade secrets, customer lists, business plans, financial information, and other proprietary information of Company. Employee agrees to maintain the confidentiality of all such information and to use it solely for the benefit of Company.
4. Consideration. In consideration of Employee`s agreement to be bound by the terms of this Agreement, Company agrees to provide Employee with the following consideration: [description of consideration].
5. Enforceability. If any provision of this Agreement is found to be unenforceable, the remaining provisions will remain in full force and effect.
6. Governing Law. This Agreement will be governed by Ohio law. Any legal action arising from or relating to this Agreement will be brought in the courts of Ohio.
7. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[company name]By: _____________________________
[employee name]By: _____________________________
Conclusion
Implementing a non-compete agreement can be a valuable tool for protecting your company`s interests. By following Ohio`s non-compete agreement requirements and using our Ohio non-compete agreement template, you can create a legally enforceable agreement that helps safeguard your business. However, it is always recommended to consult with an attorney to ensure your non-compete agreement is compliant with Ohio law and adequately protects your business interests.
