Non-compete agreements are pretty commonplace in the business world these days. Employers utilize them in order to protect their companies. The problem business owners in Ohio may have with these agreements is that they can open them up to business litigation if they are not worded correctly, or if the terms laid out in these documents are unreasonable.
What exactly is the purpose of a non-compete agreement? This is a contract between an employer and an employee. Once signed, it means that the employee agrees not to use company information in order to directly compete with the business owner if he or she ultimately leaves the company.
A non-compete agreement is generally thought to be a binding contract. It certainly can be if it is executed in the right way. An employee may sign one and then seek to have it invalidated if the terms are too restrictive. Every state is different in its enforcement of these contracts. That is why having one written to follow the laws of Ohio rather than downloading a standardized form off of the Internet is the way to go, if business owners wish to help themselves avoid litigation over these contracts.
A non-compete agreement, if not drafted and executed properly, can end up costing Ohio business owners a lot in the long run. Business litigation is not cheap and can do real damage to a company’s bottom line. Turning to an experienced attorney for the creation of these contracts is a must in order to help avoid litigation. If company owners find themselves facing legal actions over such contracts, an experienced business litigation attorney may be able to assist them in resolving the matter as quickly and quietly as possible.