Ohio and Kentucky's Leading Legal Advisors on Non-Compete Agreements
What Types of Non-Competition Agreements or Other Restrictive Covenants Can Affect an Employee?
Non-compete agreements. A non-compete agreement typically restricts an employee from competing with the employer's business for a set time and/or in a specific geographic area after their employment ends.
Non-solicitation agreements. A non-solicitation agreement restricts an employee from soliciting the business of specific customers of the employer within a set time period.
Non-disclosure agreements. A nondisclosure agreement prohibits an employee from using or disclosing confidential information that belongs to the employer.
While the contents of a non-complete may vary from company to company and state to state, they typically attempt to prohibit the employee from things such as:
- Working for a competitor company or competing individual;
- Starting a company that offers the same products or services;
- Developing competing products or providing competing services;
Similarly, a non-solicitation agreement is intended to prohibit an employee from recruiting former colleagues to join their new business or solicit clients or vendors of their former employer.
Are Non-Compete Agreements Enforceable?
The short answer is it depends, on both the state where the agreement is made to be enforced and the terms of the agreement itself. But in states such as Ohio and Kentucky where restrictions are enforceable, a breach can led to legal action and financial liability against a former employee.
Courts look to several factors to determine if the restrictions are enforceable, such as:
- Is the non-compete agreement needed to protect an employer's legitimate businesses interest, such as confidential business information?
- Does the non-compete agreement have a reasonable time limitation?
- Is the non-compete agreement limited to a specific reasonable geographic location?
- Does the non-compete serve to protect a legitimate business interest of the employer or is it simply trying to prevent an employee from seeking other employment that might be more lucrative or have better working conditions?
- Is the non-compete agreement support by "consideration," meaning does the employee receive some benefit for signing the agreement— like a new job, continued employment, more compensation, or stock options — for agreeing not to work for a competitor?
What Should I Do if I Am Asked to Sign a Non-Compete or some other Restrictive Agreement?
Because non-competes can severely limit an employee’s ability to change jobs by limiting where, when, and for what company or in what industry they can work, it is best for employees to not have a non-compete agreement at all. If an employer demands a non-compete, employees should try to negotiate the terms as much as possible both in terms of its in geographic scope and in its duration. It should also be limited as narrowly as possible with respect to the line of work it covers, so as not to prevent an employee from a whole industry or line of work.
With so much at stake, an employee should consult with an attorney before signing a non-compete or other similar agreement. Guessing wrong about the validity of the agreement or what the agreement covers can seriously affect an employee’s ability to work and have serious financial consequences.
What if I Already Have a Non-Compete?
If you have signed a non-compete, it is a good idea to consult with an attorney before making any job change to get advice on what limits the contract imposes and how to best avoid legal action by a former employer and the financial liability that can go with it. If you have been accused of violating a non-compete of other restrictive covenant it is a good idea to seek legal advice to know if or how the agreement affects your current work situation.
The attorneys at Freking Myers & Reul are experienced with these issues and are here to help.
A Down to Earth Approach
Our CLients Share THeir Experiences
-
“When I was wrongfully terminated by my previous employer there was not a question of who I needed to contact to get the help I needed. The team of Katherine Neff and Randy Freking was amazing and Katherine is a shark! Katherine was by my side to win an unemployment appeal, and in the end, I got exactly what I asked for and needed. I can not say enough about this firm but if you need help give them a call.”- Mike M.
-
“Our experience with FMR has been very positive. I particularly appreciated the clear communication regarding the consultation fee to review the situation and determine realistic next steps. Navigating the user-friendly website, completing the initial questionnaire, receiving a prompt response, and meeting with an attorney all helped us understand the possibilities in a way we could comprehend. The initial support team was accommodating and professional. Jon Allison was patient, respectful, and fully present during the review. His expertise and ability to sift through details, listen compassionately and outline options was reassuring. The objective was to reach a mutually agreeable plan of action and we did. Highly recommend!”- Sandy D.
-
“If you are looking for a fast talking, hyperventilating, promise-you-the-world type of attorney , than Mark Napier is not your man. Mark is empathetic, thorough, clever, honest, realistic and very fair. He will include you in every aspect of your case and looks for your input. I highly recommend him.”- Kathleen H.
-
“Erin Heidrich was absolutely fantastic for us. She was kind, smart, and professional. Communication was great with her and she made us feel good about the likely outcome of the process we were going through. We would use her again for sure.”- Matthew M.
-
“I recently had the pleasure of consulting with Kelly Myers during a very difficult contractual dispute with my prior workplace. While we agreed that it was best for me to continue myself, at least for a time, she was deeply helpful and insightful. We spoke for over 40 minutes about specific issues and I never felt rushed or unheard. I will recommend Ms. Myers to anyone who asks me for future employment issues. I am grateful and hopeful that this Google Review will bring new business to an attorney who I believe in just after a 40 minute consultation.”- Blake C.
-
“This team exceeded my expectations! They kept me updated at all times, answered & addressed any questions/concerns I had, & most importantly won my case. Highly recommend!”- Kofi F.
-
“During a very difficult time I had the pleasure to work with Liza. She was quick to explain my options while listening and allowing me to explain my situation. She kept me updated during the process and explained everything as we went along. I would highly recommend her. Her knowledge and compassion made me feel comfortable during a time that was very challenging.”- Elizabeth Newman
-
“Recently had a need for an attorney was referred to this law firm met Mark Napier who took on our case he was professional, honest, and trustworthy would highly recommend this firm moving forward.”- Darryl P.
-
“Our experience with this firm has been very positive. I particularly appreciated the clear communication regarding the consultation fee to review the situation and determine realistic next steps. Navigating the user-friendly website, completing the initial questionnaire, receiving a prompt response, and meeting with an attorney all helped us understand the possibilities in a way we could comprehend. The initial support team was accommodating and professional. Jon Allison was patient, respectful, and fully present during the review. His expertise and ability to sift through details, listen compassionately and outline options was reassuring. The objective was to reach a mutually agreeable plan of action and we did. Highly recommend!”- SP D.
