Fair And Unfair Noncompete Agreements

There is a myth that noncompete agreements are not enforceable. That is untrue, which is why it is important to consult an attorney prior to entering into one or when one has allegedly been violated. At Mowery Youell & Galeano, Ltd., we bring more than 30 years of experience to all matters pertaining to noncompete agreements.

Review And Negotiation Of Noncompete Agreements

When our Dublin, Ohio, noncompete agreement lawyers conduct a review, the focus is on three primary factors: geographic scope, time duration and business functions. The extent to which these factors are used can vary dramatically from one agreement to the next. We want to make certain that the provisions in the agreement are satisfactory to you and that you understand your rights and the restrictions you will have to adhere to.

These factors may be negotiable, and we have extensive experience negotiating them. Perhaps the proposed geographic scope is too vast or the time duration is too long. Perhaps the restricted business functions are far more inclusive than they should be. We will strive to have the provisions altered to meet your needs and ensure that you do not face career-stifling restrictions if you decide to move on in the future.

Violations Of Noncompete Agreements

In the event of a noncompete agreement violation, a business will likely move quickly to have a former employee removed from his or her current position, the position that is allegedly in violation of the agreement. When you contact us, we will take immediate action to effectively protect your current position. Through negotiation or trial, our goal is to make certain that your career is not jeopardized by a former employer’s liberal interpretation of an agreement.

Questions To Ask Your Attorney About Noncompete Agreements

When meeting with your attorney to discuss noncompete agreements, it may help to ask the following questions to protect your interests:

What Are The Specific Terms And Restrictions In My Noncompete Agreement?

To determine the impact that a noncompete agreement will have on your career, it is crucial that you understand all of the details. What industry does it apply to? Are there geographic limitations? Does it only apply for a certain duration? What would your previous employer actually be able to do if you violated the agreement?

How Can The Geographic Scope And Duration Of The Noncompete Agreement Be Negotiated?

You may be able to negotiate the terms of an agreement to better suit your future career plans. If you are going to be working in another state or another country, the noncompete may not apply to your next job. Additionally, you need to know if the noncompete agreement applies indefinitely or if there is a much shorter term, such as limiting your occupational prospects for the next year or two, and then expiring.

What Are The Potential Consequences If You Violate The Noncompete Agreement?

You need to know the risks so that you understand exactly what ramifications you may be facing. Could your previous employer take legal action against you? Is the noncompete agreement going to make you unemployable in the future? If you violate the agreement even while it still stands, how is that going to change the trajectory of your career and what type of legal ramifications are you going to face?

The answers are different in every unique situation, so you need to know exactly how it applies in your case. The restrictions for one worker could be significant, while another worker may determine that the agreement does not actually change how they approach their future career at all – such as if they are planning to work in another industry that is not covered by that agreement or if they are planning to go back to school until it expires anyway.

Common Questions About Noncompete Agreements

The following short discussions are not intended to be personalized legal advice. However, they may help you narrow down what you want to ask an employment lawyer at Mowery Youell & Galeano, Ltd.. Let us hear from you so that we can give counsel relevant to your unique situation.

Should I sign a noncompete agreement?

This is a valid and relevant question, considering the fluctuations of labor pools in today’s labor market. The so-called Great Resignation of the pandemic-era employment world has seen many workers start new positions at companies that have recruited them.

As you decide whether to sign a noncompete agreement at a new job, you may want to know how likely it is that your employment contract will limit you the next time you switch jobs, or if it may impact other work you do outside of this job. If possible, get a copy of the agreement you are being asked to sign and run it by a career counselor and/or an employment law attorney so you can weigh the pros and cons of signing it. Know that if you do sign it, it will likely be enforceable and may impact your career moving forward. Be aware that you have the right to negotiate the terms or reject them altogether, though doing so can result in not being hired for the job or being terminated.

How long are noncompete agreements enforceable?

Time limits of enforceability of noncompete agreements in Ohio range from six months to two years following the end of the employer/employee relationship, with one year being a common time frame, as well as during the entire period of employment. Ohio courts usually consider any length of time longer than two years to be unreasonable, though some employers may attempt to ask for longer periods.

What voids a noncompete agreement?

A court may find that a noncompete agreement was void if it was unreasonable in terms of (1) how great a geographical area it allegedly covered or (2) how long it was expected to last. Other details may differ depending on the level of competition in an industry, an employee’s skillset and other factors. A poorly written or unclear noncompete agreement may also be void.

Are noncompete agreements legally binding?

Yes. Since the 1940s, Ohio’s courts have been enforcing noncompete agreements. If you try to fight such an employer’s attempt to hold you to the terms of a noncompete agreement, you and your employment law lawyer may succeed by showing that:

• The restrictions were greater than what was necessary to protect your employer’s legitimate business interests (versus your need to make a living).
• The agreement imposed an undue hardship on you.
• The agreement was harmful to the public.
• The geographic scope or time limit was excessive.
• You were not the only customer contact at your place of employment for the type of work that you did.
• You did not possess trade secrets that would be at risk when you quickly switched to another employer.
• Noncompete agreements are not typical in your line of work.

Protect Yourself From Unwanted Consequences Of Noncompete Agreements

Keep in mind that even if a noncompete agreement that you signed is not binding, you may need to work to prove that it is not if there is a dispute. If your employer (or former employer) brings a lawsuit against you, you may incur legal fees to defend yourself. It is better to be safe than sorry. Ask an experienced employment litigator for an opinion before signing a noncompete agreement or putting an existing noncompete agreement to the test by accepting similar employment quickly after leaving a job.

To discuss your concerns about a noncompete agreement, reach out to an attorney at our firm. Send an email or call 614-467-4923. From our office in Dublin, we represent clients throughout the Columbus metro area and central Ohio.