Foreign Independent Contractor Agreement With Non Compete Clause In Ohio
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FAQ
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.
As previously reported (Dentons Alert), the US Federal Trade Commission (“FTC”) issued a regulation earlier this year that effectively bans most non-competes for employees and independent contractors (the “FTC Rule”). The effective date of the FTC Rule is September 4, 2024.
The simplest way to get out of that kind of contract is merely to ask them to release your from it. If they refuse, you might need to get a lawyer to aid you in doing so. Non-compete contracts usually have penalties specified and certainly have durations. A contract that the courts deem to be unfair can be nullified.
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
Even workers labeled as “independent contractors”—who should have the freedom to work for multiple clients—are often required to sign non-competes that limit where they can work. Employers often present non-competes as a “take it or leave it” contract, forcing workers either to sign or forego employment.
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.
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.
