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Ohio Non-Compete Law 2025

In 2025, Ohio lawmakers introduced a bill, Senate Bill 11 (SB 11), that would ban non-compete agreements in the state. This bill, if passed, would prohibit employers from entering into, enforcing, or even attempting to enforce a non-compete agreement with a worker. The bill defines “worker” broadly, including employees, independent contractors, and other temporary workers.

Key points of the proposed bill:

  • Prohibition: Employers would be prohibited from entering into or enforcing non-compete agreements with workers.
  • Broad Definition of “Worker”: The bill would define “worker” to include a wide range of individuals, including employees, independent contractors, interns, volunteers, and apprentices.
  • Scope: The bill would prohibit agreements that restrict a worker’s ability to work for another employer, operate a business, or engage in certain activities after their employment ends.
  • Forum Selection Provisions: The bill would also prohibit employers from enforcing forum selection clauses that require workers to litigate claims outside of Ohio.
  • Enforcement: The bill would provide for civil actions and potential punitive damages for employers who violate the law.

Current Law in Ohio:

  • Currently, Ohio law permits non-compete agreements, but they must be “reasonable” in terms of duration, geographic scope, and the specific interests being protected.
  • The enforceability of a non-compete agreement is determined on a case-by-case basis, considering the specific circumstances.

Potential Impact:

  • If passed, the bill would make Ohio one of the few states with an outright ban on non-compete agreements. 
  • It would provide greater mobility for workers in Ohio, allowing them to switch jobs without fear of facing a non-compete agreement.
  • The bill is intended to protect workers from overly broad or unreasonable non-compete agreements.

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