In Ohio, non-compete agreements are enforceable, but only to the extent a court finds them reasonable. There is no Ohio statute that bans non-competes, and unlike California, North Dakota, Oklahoma, and Minnesota, Ohio does not void them outright. Instead, Ohio courts apply a three-part reasonableness test from the Ohio Supreme Court's 1975 decision in Raimonde v. Van Vlerah: a covenant not to compete is enforceable only if (1) the restraint is no greater than necessary to protect the employer's legitimate business interest, (2) it does not impose undue hardship on the employee, and (3) it is not injurious to the public. Critically, Ohio is a blue-pencil (reformation) state: if a non-compete is too broad, an Ohio judge can rewrite it to make it reasonable rather than striking it down entirely. Ohio also has no low-wage exemption, so even hourly and lower-paid workers can be bound.
How Ohio's Reasonableness Test Actually Works
Because there is no Ohio non-compete statute, this is a matter of common law decided case by case. Under Raimonde, courts weigh several practical factors to decide whether a restriction is reasonable, including:
The geographic scope of the restriction and whether it matches the employer's actual market.
The time period of the restriction (commonly six months to two years; longer terms draw more scrutiny).
Whether the employee actually had contact with customers or access to confidential information or trade secrets.
Whether the restriction seeks only to bar ordinary competition (not protectable) versus protecting goodwill, trade secrets, or customer relationships (protectable).
Whether enforcement would force the employee out of their sole means of support.
Whether the agreement is so broad it amounts to a prohibition on the employee's ordinary right to make a living.
An employer cannot use a non-compete simply to stop you from competing. Ohio courts require a legitimate business interest, such as protecting trade secrets, confidential business information, or customer goodwill the employee helped build. A restriction that goes beyond protecting those interests is unreasonable to that extent.
The Blue-Pencil Rule: Why Overbroad Does Not Mean Void
One of the most important things Ohio workers should understand is that an overly broad non-compete is not automatically thrown out. In Raimonde, the Ohio Supreme Court rejected the all-or-nothing approach and held that courts may modify or amend an unreasonable covenant to the extent necessary to protect the employer's legitimate interests. This means a judge can shorten a five-year term to one year, or shrink a nationwide restriction to a single county, and then enforce the trimmed-down version against you. This differs from "strict" blue-pencil states where a court can only delete offending words. Practically, it means you should not assume an obviously excessive clause is meaningless. The court may save it.
Consideration: Continued Employment Is Enough in Ohio
Many workers ask whether a non-compete is valid if they were already employed when asked to sign it. In Ohio, the answer is generally yes. In Lake Land Employment Group of Akron, LLC v. Columber (2004), the Ohio Supreme Court held that an at-will employer's continued employment of an existing at-will employee is sufficient consideration to support a non-compete signed after hiring. You do not necessarily need a raise, bonus, or promotion in exchange. That said, the presence or absence of additional consideration can still factor into the overall reasonableness and hardship analysis.
No Low-Wage Ban and No Recent Statutory Change
Several states have enacted income thresholds that prohibit non-competes for lower-earning workers. Illinois bars them below roughly the mid-$70,000s, Washington uses an annually adjusted earnings floor, and Oregon, Maine, and others have similar limits. Ohio has done none of this. There is no Ohio wage threshold, no ban for hourly workers, and no broad statutory carve-out for any particular pay level. As of 2026, the Ohio General Assembly has not passed a law banning or capping non-competes, so the Raimonde common-law framework still controls.
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On the federal side, the baseline is that there is currently no nationwide ban. The Federal Trade Commission issued a rule in 2024 that would have voided most non-competes, but a federal court in Ryan, LLC v. FTC set that rule aside in August 2024, and it never took effect nationwide. For comparison on other federal labor baselines: the federal minimum wage under the FLSA is $7.25 per hour and federal overtime is owed after 40 hours in a workweek. Ohio's own minimum wage is higher (roughly $10.70 per hour for non-tipped employees as of 2025, adjusted annually for inflation). Because that figure changes each January, confirm the current rate with the Ohio Department of Commerce before relying on it. None of these wage rules, however, limit non-compete enforceability in Ohio.
What to Do If You Are Asked to Sign or Threatened
Non-competes in Ohio are private contracts enforced through the courts, typically when an employer sues a former employee (and sometimes the new employer) for breach and seeks an injunction. No state agency "approves" or polices non-competes for you, so protecting yourself is largely up to you and your lawyer.
Before you sign: Read the entire agreement. Note the time period, geographic area, and the exact activities barred. Ask whether the restriction can be narrowed and get any promises in writing. You generally have more leverage before signing than after.
Keep a copy: Always retain a signed copy of any non-compete, confidentiality, or non-solicitation agreement.
If you are threatened or leaving a job: Do not assume the clause is unenforceable just because it looks broad. Remember Ohio's blue-pencil rule. Have an employment attorney assess reasonableness under Raimonde for your specific facts.
Watch for non-solicitation and confidentiality clauses: These are often enforced even where a pure non-compete might be trimmed, and they can restrict you separately.
Document your situation: Your job duties, customer contact, and access to confidential information all affect whether a restriction is reasonable as applied to you.
Where to Verify Ohio's Rules
Ohio non-compete law lives in court decisions, not a single statute, so the most reliable sources are Ohio case law (starting with Raimonde v. Van Vlerah and Lake Land Employment Group v. Columber) and a licensed Ohio employment attorney. For wage and hour questions, the Ohio Department of Commerce, Bureau of Wage and Hour Administration is the official state source, and the Ohio Department of Job and Family Services handles unemployment and workforce matters. For help finding a lawyer, the Ohio State Bar Association offers a lawyer referral service. Because enforceability turns on the specific facts of your job and agreement, get individualized legal advice before signing or before changing jobs while bound by a non-compete.
This article is general information about Ohio law, not legal advice for your situation.
Official Ohio Sources
This page is based on Ohio employment law. Rules and figures change — verify the current details directly with the official Ohio sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Ohio state law.
Frequently asked questions
Are non-compete agreements legal in Ohio?
Yes. Ohio enforces non-competes if they are reasonable under the Ohio Supreme Court's Raimonde v. Van Vlerah test: the restriction must be no broader than needed to protect a legitimate business interest, must not impose undue hardship on the employee, and must not harm the public. Ohio has no statute banning them.
Can an Ohio court rewrite an overly broad non-compete instead of voiding it?
Yes. Ohio is a blue-pencil or reformation state. Under Raimonde, a judge can modify an unreasonable non-compete, for example by shortening its duration or shrinking its geographic area, and then enforce the narrowed version. So an excessive clause is not automatically unenforceable.
Does Ohio ban non-competes for low-wage or hourly workers?
No. Unlike Illinois, Washington, and Oregon, Ohio has no income threshold and no exemption for hourly or lower-paid employees. Any worker can be bound, though low pay and undue hardship are factors a court weighs when deciding reasonableness.
Is a non-compete valid if I signed it after I was already hired in Ohio?
Generally yes. In Lake Land Employment Group v. Columber (2004), the Ohio Supreme Court held that an at-will employer's continued employment of an existing employee is enough consideration to support a non-compete, even without a raise or bonus.
Did the FTC ban on non-competes take effect in Ohio?
No. The Federal Trade Commission's 2024 rule that would have voided most non-competes was set aside by a federal court in Ryan, LLC v. FTC in August 2024 and never took effect. As of 2026, Ohio's common-law Raimonde framework still governs.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
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