Legal Question in Business Law in Ohio

Maybe. Generally, Ohio does recognize non-compete agreements between employees and employees. However, the restrictions must be reasonable. There is a list of factors to look at to determine the reasonableness of the restrictions. A court also has the power to change the restrictions so that they would be reasonable.

Another issue is whether your friend received anything in exchange for signing the non-compete. Normally an offer of employment is enough. If your friend had already been working there though, there needs to be something else. If she was told she had to sign the agreement or else would lose her job, that would be sufficient.

Ultimately this is a fact-specific situation, and your friend is going to have to talk to a lawyer and have him or her review the specific language of the agreement to see if the restrictions would be reasonable or not based on the circumstances.

I agree with my colleague from Columbus. Reasonable noncompetes have been enforceable in Ohio for more than 60 years. According the Supreme Court of Ohio, one would look at: whether the restrictions are necessary to protect the employer�s legitimate interests; whether the restrictions would impose an undue hardship on the employee; and whether the restrictions would injure the public.

If the restrictions are too broad, the court will likely modify the agreement and impose less draconian restrictions. In your friend's case, an agreement not to compete for two years at a local doughnut shop might be enforceable but the ban against working with any baker and the geographic area may be issues. It certainly should not apply to distant regions and prohibit employment where the baking is not in direct competition with the doughnut shop.

There is also a practical, non-legal consideration here. The cost for a doughnut shop to sue a nonessential employee for a violation of the agreement may be substantial, and thus may lead some to conclude that the restriction is more smoke than fire.