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When you are in a business, several agreements and contracts shape how you operate. These contracts and agreements define relationships with your employees, third-party suppliers and other stakeholders. One such contract is a non-compete agreement, a commonly used contract that prohibits employees and other stakeholders from joining rival firms or starting a business venture similar to the ones they have worked for.

Non-Compete Agreement for Employees

The non-compete agreement simply means that employees who quit their current employer are not allowed to work with directly competing businesses in the same industry. The penalty for violating a non-compete agreement might lead to the employer getting a court order, which prohibits the ex-employee from becoming an employee of the rival firm. A monetary award might follow the court order prohibiting employment with a competitor.

Ohio Non-Compete Agreements Must Follow Strict Rules

Under Ohio law, a non-compete agreement is not favored and will be stricken by a Court unless it meets strict requirements. These requirements have to do with the geographic territory covered by the non-compete agreement, and with the time after employment terminates in which the employee is prohibited from seeking employment with a competitor. These requirements are beyond the scope of this article. For more information, you should consult a business lawyer familiar with these rules.

The Grundy Law Firm has been advising business clients on non-compete agreements and other matters related to operating a successful business since 1994. It is essential for employers to have an experienced business lawyer to take a detailed look at non-compete agreements, and other agreements used by businesses in their relationships with employees, vendors, suppliers, customers, and others. The lawyer will ensure your business contracts comply with Ohio law.

If you wish to get further information regarding non-compete agreements and/or other business contracts, contact the offices of John Grundy at 330-637-9030 to schedule a free consultation session with an experienced business law attorney.