Employers in Ohio may soon need to reexamine employment agreements and internal policies if a proposed non-compete ban becomes law. A state Senate bill was recently introduced aiming to prohibit agreements that restrict a worker’s ability to engage in a lawful profession or business after their employment ends. What do employers in Ohio need to know as state lawmakers consider this significant shift? Here are the four key aspects that impact the workplace.

1. Expansive Definitions

The bill sets forth broad definitions designed to capture nearly all employment relationships:

• Employer: Any person or entity hiring or contracting with a worker.
• Worker: This term would broadly include employees, independent contractors, interns, volunteers, apprentices, sole proprietors, and individuals providing services through a business or nonprofit organization.

If passed, this bill would require a review of all types of work relationships to ensure that agreements — whether with full-time employees or contracted service providers — are assessed for compliance with the new definitions.

2. Ban on Restrictive Post-Employment Agreements

SB 11 would void any agreement (or part of an agreement) entered into, modified, or extended on or after the effective date that:

• prohibits a worker from accepting employment or starting a business after leaving the company;
• imposes penalties (such as fees for lost profits, goodwill, or any reimbursement for training and orientation expenses); or
• ...

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