Ohio Non-compete Agreement Template

Why Employers Use an Ohio Non-compete Agreement

The main reason for signing the non-compete agreement is the protection of the interests of the company. Ohio NCA prohibits having business activity with competitors, sharing data about the customers, distributing secret technologies and information to third parties, and other actions established by the employer.

The employee signs the non-compete agreement template at the beginning of the working experience in the organization and must comply with the requirements of the agreement for the determined period.

What Is in the Ohio Non-compete Agreement Template

The free Ohio template runs about three pages and follows the order below. Read each part with the other side before you sign, and change the blanks to match the job. The template calls the employee or contractor the "Agent" and the employer the "Company".

• Parties and effective date: names, addresses and the date the agreement starts.
• Term: runs during the job and for a number of years that you fill in after it ends.
• Not a contract of employment: a short note that the agreement is not a job contract.
• Non-competition: check boxes for any competing business or a named list, plus options for a geographic area and for online business.
• Non-solicitation: covers employees, contractors, customers and vendors of the company.
• Limitation: a clause that lets the parties adjust a term that turns out too broad.
• Governing state: names Ohio and leaves a blank for the county.
• Miscellaneous and signatures: closing terms and signature lines for both sides.

Key Terms in an Ohio Non-compete Agreement

Non-compete paperwork uses a few terms again and again. Knowing what each one means makes the template easier to fill in and easier to talk through with the other side, so read this list before you start.

• Employer or company: the business that asks for the agreement and wants its information protected.
• Employee, agent or contractor: the person who agrees to the limits. The Ohio template calls this person the "Agent".
• Effective date: the day the agreement starts.
• Term: how long the agreement lasts, including the years after the job ends.
• Confidential information: business details that are not public, such as client lists, pricing and product plans.
• Scope: the kind of work or the type of competitor the employee agrees to stay away from.
• Geographic area: the place where the limit applies, if you choose to name one.
• Non-solicitation: a promise not to recruit coworkers or pull away customers and vendors.

Ohio Non-compete Agreement Disputes and Problem Clauses

When the recipient (employee) violates the restrictions, the court may impose a fine to compensate the company’s losses. However, the court will check the validity and reasonability of applied restrictions and decide whether the worker has broken the rules or not.

Factors for which the court declares the contract invalid are:

1. The formulation of restrictions is so broad that it prevents fair competition.
2. The employer has an incommensurable favor in comparison to the damage to the employee.
3. The employer does not have access to confidential data.
4. The agreement restricts the employee’s skills and experience.
5. Geographical and time limitations are extremely strict.
6. The agreement constrains the usage of skills acquired with the help of another employer.
7. The damage to the company can be done by another employee.
8. The agreement prohibits the usage of essential for high-quality performance skills.
9. The agreement is harmful to society.
10. The agreement protects illegal business actions.

As the employer, make sure your agreement does not match the criteria listed above to get protection from the court.

As an employee, you cannot violate the basic principles of the contract even if it is invalid at some points. The court will not rule the full agreement inactive. There is an option of “blue-pencil doctrine” when the court rewrites the form and makes it legal to secure the company’s interests.

Ohio NCA Laws and Restrictions

The Ohio NCA is regulated by Section 1333.81 of the Ohio Revised Code. It is applied along with Section 1333.61, which includes definitions used in the sphere of trade secrets.

The law on the confidentiality of information declares that the employee can share secret information only to people who have the right to know it or with a written confirmation from the employer.

The restrictions should be matched by both parties—employer and employee—so as not to restrict someone’s freedom. Also, the content of the form depends on the industry, its size, and the nature of the work. There are no universal rules for every commercial organization. The most important point is to follow the requirements of the law and not overestimate the necessity to protect the business.

Common Mistakes When Using a Non-compete Template

Small gaps in the paperwork lead to big questions later. Slow down on the blanks and read the finished pages with the other side before anyone signs. That habit takes little time and saves a long conversation later.

• Leaving the time period blank, so nobody knows how long the agreement lasts.
• Describing the protected information in vague words like "business matters" instead of specific examples.
• Writing a company name that differs from the name on the employer's other paperwork.
• Checking both options on the first non-competition choice, when the template asks for one.
• Signing before the other side has read the final version.
• Losing track of the signed copy after the first week.

Tips for Using the Ohio Non-compete Agreement Template

A few practical habits make the agreement easier to read and easier to find later. Go through this list before you print the final version, and share it with the other side if that helps.

• Describe the confidential information in plain words, such as client lists or pricing.
• Pick a time period and an area that match the real risk to the business.
• Check that every name and address matches the ID of the person signing, so each party is named the same way throughout.
• Ask an Ohio attorney to look over the final text if the stakes are high.
• Keep one signed copy for the employer and one for the employee.

Frequently Asked Questions

What is an Ohio non-compete agreement?

It is a contract between an employer and an employee. The employee agrees to protect the company's confidential information and to stay out of competing work for an agreed period after the job ends.

Can I edit the Ohio non-compete agreement template before I sign?

Yes. You can change the blanks and check boxes, or fill in and edit the PDF online before you print it. Have both sides read the final version and agree on every change before anyone signs.

How do I get the Ohio non-compete agreement template as a PDF?

Use the PDF file link in the download box at the top of this page. You can also choose Create My Document to build the agreement online and save it to your device.

Who keeps the signed agreement?

Each side keeps a signed copy. Store yours with your other employment papers and note the start date so both sides can find it later.

Other Ohio Forms
Consider our document maker to customize any template on our site to your requirements. Here’s a number of other common Ohio documents we provide.

• Ohio Last Will
• Ohio Living Will
• Ohio Small Estate Affidavit
• Ohio Bill of Sale
• Ohio Rental Lease Agreement
• Ohio Eviction Notice
• Ohio Power of Attorney

General information, not legal or tax advice.

Jennifer M. Settles

Author & Attorney

With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.