Industry News
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.