It is also a good practice to remind your employees of their agreement not to compete. For example, it may be helpful to have some workers re-examined each year and to get the agreement. Another option is to include review and recognition of the agreement in exit interviews. This practice not only reminds the worker of his duties, but also brings the worker`s attention to the seriousness of the agreement with respect to the employer. In light of the Ohio Supreme Court decision, employers who enter into restrictive agreements under Ohio law should ensure that their non-competition agreements contain language that extends the worker`s obligation if the company employed is acquired by another company by merger or other means. Buyers of businesses that use a non-compete obligation under Ohio law should also take note of the Court of Justice ruling, particularly if the company to be acquired has non-compete obligations with its employees or if the assets to be acquired are part of the non-compete obligation. If a worker is subject to a non-compete agreement subject to Ohio law and the agreement does not have the language “successor and beneficiary of the assignment,” the employer (or purchaser) should consider whether and how that employee can sign a new agreement with that language. It is important to note that even if a non-competitive agreement is unreasonable, it does not mean that the worker can completely ignore his terms. When an Ohio court finds that a competition incapacity agreement is unreasonable, it has the power to highlight the inappropriate party and rewrite the agreement to make it reasonable and therefore applicable. This is called the “blue pencil doctrine.” For example, a court could rewrite a non-competitive agreement that prohibits the worker from competing for the rest of his or her life, to include a more appropriate time frame. The reason is that Ohio does not have a clear legal directive on when a non-compete clause will apply. Instead, we have a nebulous legal standard, made by the judge, which states that a non-compete clause is applied if its restrictions: 1) are not greater than necessary to protect the legitimate business interests of the employer; 2) do not impose unreasonable harshness on the worker; and 3) do not harm the public.
After working for your employer for a while, you may be thinking about resigning to pursue other options. Could your non-compete agreement really allow you to work wherever you want? Are you able to question the applicability of the competition and non-invitation agreement in Ohio? What is a “reasonable” non-compete agreement? Privacy. Depending on the nature of the business or working relationship, the parties may attempt to keep the terms of the non-competition agreement confidential. While these types of provisions are fairly simple, be sure to allow exceptions that are necessary to obtain a provision or provision of the agreement to disclose the agreement to a party`s accountant or lawyer for use related to the provision of professional services and, as required by law. Several principles must be respected when assessing the applicability of a non-competition agreement. Non-competition agreements act as a restriction of trade and are strictly opposed to the employer. Restrictions imposed by a non-compete agreement must be limited in order to protect only the legitimate business interests of the employer. Restrictions must not impose unreasonable severity on the worker and must not harm the public interest. These principles are co-dependent in the application.