Should you be utilizing a noncompete agreement?

On Behalf of | Dec 2, 2021 | Business Litigation |

Regardless of your industry, it’s a competitive market out there right now. That’s why you need to strategically think through what you can do to best position your business for success. This may mean negotiating price-conscious contracts with suppliers and consumers, developing aggressive marketing tactics, and even choosing the proper business structure. But another way to gain a competitive edge over your competition is to consider utilizing noncompete agreements.

How a noncompete agreement may benefit your business

In its most basic terms, a noncompete agreement is a legally binding contract between and employee and his or her employer whereby the employee agrees not to work for a competitor within a specified period of time after leaving the employer. Under Ohio law, these agreements will generally be deemed enforceable so long as they are reasonable.

But if you’re facing business litigation over one of these contractual arrangements, how will a court determine if the noncompete agreement is reasonable? Here are some of the main factors that will be scrutinized:

  • The geographic scope of the restriction
  • The length of time that the restriction is to be in place
  • The business interest protected by the agreement and whether that interest is legitimate
  • Whether the worker possesses any confidential information
  • The hardship that the restriction places on the worker
  • How, if at all, enforcement of the agreement would affect the public

Know how to protect your interests

Noncompete agreements can be a great way to protect your business interests and better ensure that you retain a competitive edge in the marketplace. However, enforcing one of these agreements can require litigation, which is why it’s important that you know the law and how it applies to your unique set of circumstances. Fortunately, experienced business law attorneys like those at our firm stand ready to help you navigate any challenges that you may be facing.


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