Non-Compete Agreement (NCA) Forms are popular in many parts of the US among commercial organizations. These documents are signed between the employer and their employees.
This contract results from an agreement between employer and employee that the latter will not spread secret information about the organization to competing firms in the same field. It also limits the worker’s opportunity to be hired in a competing company in the same industry for a particular period after the termination of an employment contract. 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.
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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.
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:
Popular Local NCA Forms
After the relationship between an employee and employer ends, the second may require the former to agree to a non-compete contract, also known as “covenant not to compete,” to keep their confidential information from being used by their competitors. The following are the state NCA templates our visitors research the most.
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.
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.