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Employment Discrimination Sample With Non Compete Clause In Ohio
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Multi-State
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US-000267
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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.
Specific Reasons for Invalidity Failure of one or both parties to actually sign the agreement; Failure to amend the non-compete agreement when employment circumstances change; Failure in drafting the original non-compete agreement accurately or specifically.
Fighting a Non-Compete in Ohio In the cases where a non-compete in Ohio is disputed, Ohio courts will evaluate the reasonability of the contract itself. The criteria used in this evaluation include: The duration prohibiting you from competing. The geographic area where you are prohibited from working.
If a non-compete in Ohio is longer than two years, or the area included is too broad, the court will usually deem the contract unreasonable. Also, if you are in a niche industry or market, a non-compete in Ohio will also limit your options for employment, causing undue hardship.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
Ohio courts tend not to enforce non competition clauses lasting more than two years, although some Ohio courts have done so. Second is the geographic scope of the agreement. The larger the geographic area in which the employee is restricted from working, the more likely it is a court will holds it is too broad.
Reasonableness: Non-compete agreements must be reasonable in terms of their scope and duration. This means that the restrictions must be no broader than necessary to protect the legitimate business interests of the employer, such as protecting trade secrets, confidential information, and/or customer relationships.
Like other contracts, a noncompete agreement is a binding document, and employees who sign them can't enter into direct competition with their former employer after leaving their job. Usually, this means that an employee can't work in certain industries or at particular companies for a set period of time.
(c) Employee name agrees not to set up in business as a direct competitor of company name within a radius of number miles of company name and location for a period of number and measure of time (e.g., “four months” or “10 years”) following the expiration or termination of this agreement.