Restrictive Covenants For Consultants In Cuyahoga
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We protect your documents and personal data by following strict security and privacy standards.
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FAQ
As long as the agreement has not imposed unreasonable limitations on you, chances are the agreement will be enforceable.
In the United States, employers generally use four types of restrictive covenants: (1) covenants not to compete for a certain period of time following the employee's termination from employment (or following a business transaction such as a sale, merger, etc.); (2) covenants not to solicit customers or clients for a ...
Common restrictive covenants include: Non-disclosure provisions prohibiting a party from disclosing the other party's confidential information. Non-solicit provisions, prohibiting one or both parties from soliciting customers or employees of the other party for a specified period of time.
The common belief amongst employees is that non-compete and/or non-solicitation agreements are disfavored and not enforceable. However, the Courts in Ohio have enforced these restrictive agreements under certain circumstances.
In the minority of jurisdictions, like California, courts will likewise disregard the fact that something is labelled as a covenant not to solicit customers and/or clients, and may instead deem it akin to a covenant not to compete and treat it as such.
Ohio's “Blue-Pencil Doctrine” Ohio courts can modify the terms to make them reasonable using the “blue-pencil doctrine.” For example, an overly broad geographic restriction could be adjusted to cover a smaller region instead of nullifying the entire clause.
Under case law, non-competes will only be enforceable if they are no wider than reasonably necessary to protect a legitimate interest (e.g. protection of confidential information or customer contacts) and are not contrary to the public interest.
Ohio's Legal Framework for Non-Compete Agreements Courts will enforce these agreements if they are deemed “reasonable.” The reasonableness of a non-compete agreement depends on its terms and how they balance the legitimate business interests of an employer with fairness to the employee and the public.
North Carolina This state adheres to the strict blue pencil doctrine, such that courts may not rewrite the covenant, but sever overbroad provisions and enforce the remainder. Ohio This state follows the “reasonable alteration” approach, in which courts have discretion to modify an overbroad covenant.
