Employee Restrictive Covenant Agreement
Cover Terms
The terms below are incorporated into and form part of this agreement.
| Employer | [Legal name of the employer] |
| Employee | [Full legal name of the employee] |
| Employee Title / Position | |
| Effective Date | [Effective date of this agreement] |
| Governing Law | Ohio |
| Confidentiality | |
| Trade Secrets Duration | Perpetual |
| Other Confidential Information Duration | 24 months |
| Employee Non-Solicitation | |
| Duration | 24 monthsMarket benchmark 24 months · modal of 67 filed agreementsReference only — not part of this agreement. Ohio sets no statutory cap on duration; enforceability turns on the holistic Raimonde reasonableness test rather than a fixed number. 24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative, and counsel should size the term to the employer's actual protectable interest.
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| Customer Non-Solicitation | |
| Duration | 12 monthsMarket benchmark 12 months · modal of 67 filed agreementsReference only — not part of this agreement. Ohio sets no statutory cap; a customer non-solicit maps directly onto the customer-goodwill interest and is often the better instrument than a full non-compete. 12 months is the lighter side of the near-even 12/24-month split observed in benchmarked, publicly-filed employee agreements — a conservative duration counsel should size to the actual customer relationships protected.
|
| Non-Competition | |
| Duration | 12 monthsMarket benchmark 12 months · modal of 70 filed agreementsReference only — not part of this agreement. Ohio imposes no statutory cap on duration; courts weigh time and territory together against the employer's real protectable interest under Raimonde, so there is no safe-harbor number. 12 months matches the modal non-compete term observed in benchmarked, publicly-filed employee agreements — a conservative default counsel should size to the actual role and market rather than copy from another form.
|
| Restricted Territory | the geographic area in which Employee provided services |
| Competitive Business | [Description of the business activities that constitute competition with the employer.] |
| Specified Competitors | |
| No Business with Covered Customers | |
| Duration | 12 months |
| Non-Investment | |
| Duration | 12 months |
| Non-Disparagement | |
| Duration | 24 months |
Standard Terms
1. Defined Terms
“Competitive Business” means the business activities described in Cover Terms under Competitive Business.
“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee.
“Covered Customers” means customers, vendors, referral sources, and business partners with whom Employee had material contact or for whom Employee had responsibility during the 12 months before termination of employment.
“Covered Employees” means employees with whom Employee worked or whom Employee managed during the 12 months before termination of employment.
“Passive Public Holdings” means ownership of securities of a publicly traded company representing less than five percent of any class of such company's securities, and interests in diversified mutual funds, index funds, and exchange-traded funds that may hold securities of a Competitive Business.
“Protected Interests” means the legitimate business interests an Ohio covenant may protect under Ohio's common-law reasonableness rule, namely Employer's Confidential Information, Employer's trade secrets as defined by the Ohio Uniform Trade Secrets Act (Ohio Rev. Code § 1333.61), and Employer's goodwill in its customer, vendor, referral-source, and business-partner relationships, but not Employer's interest in avoiding ordinary competition.
“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.
“Restricted Territory” means the geographic area described in Cover Terms under Restricted Territory.
“Solicit” means to directly or indirectly contact, approach, induce, encourage, or provide Confidential Information to any person or entity for the purpose of diverting business away from Employer, but does not include responding to general advertisements or unsolicited inquiries not initiated by Employee.
“Trade Secrets” has the meaning given in the Ohio Uniform Trade Secrets Act, Ohio Rev. Code § 1333.61(D).
2. Recitals and Protectable Interests
Employer and Employee acknowledge that each restrictive covenant in this agreement is intended to protect one or more of Employer's Protected Interests and to impose no restraint greater than is required for that protection. The parties acknowledge that each covenant is meant to guard Employer's Confidential Information, trade secrets, and customer goodwill and not to eliminate ordinary competition, and that Employer would not provide Employee with access to these Protected Interests absent the protections in this agreement. Each covenant is intended to be no greater than is required for the protection of Employer, to impose no undue hardship on Employee, to cause no injury to the public, and to be reasonable in time, territory, and scope.
Drafting Note Reasonableness
Adequate consideration does not cure an overbroad covenant. Continued at-will employment satisfies Lake Land, but a restraint that fails Raimonde on time, territory, or scope is unenforceable no matter how cleanly the rest of the agreement reads, because consideration establishes only that a covenant is supported, not that it is reasonable .
Drafting Note Protectable interests
An Ohio non-compete that blocks competition disconnected from a protectable interest reaches nothing the law recognizes and fails on the interest requirement: the restraint holds only where it is tied to identified confidential information, trade secrets, or customer goodwill. A separate confidentiality and trade-secret strategy under R.C. 1333.61 et seq. survives even where the non-compete does not .
3. Timing, Consideration, and Employee Acknowledgements
The parties acknowledge that this agreement is supported by adequate consideration. If Employee is an existing at-will employee, the parties agree that, in exchange for Employee's assent to the covenants in this agreement, Employer continues an at-will employment relationship that it could otherwise legally have terminated without cause, which is itself sufficient consideration for the covenants; no separate payment, raise, or promotion is required. If this agreement is signed at the outset of employment, the offer and commencement of employment is the consideration. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement. Employee acknowledges that the restrictions in this agreement are reasonable and necessary to protect Employer's Protected Interests, and understands that adequate consideration establishes only that the covenants are supported, not that they are reasonable — each covenant must independently be no greater than is required to protect Employer, impose no undue hardship on Employee, and cause no injury to the public. This agreement is effective as of the Effective Date listed in Cover Terms.
4. Confidential Information and Trade Secret Protection
Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's obligations regarding trade secrets continue in perpetuity, for as long as the information remains a trade secret. Employee's obligations regarding other Confidential Information continue for the period specified in Cover Terms. This confidentiality obligation is intended to operate alongside, and independent of, any restrictive covenant, and does not restrict Employee's use of the general knowledge, skill, and experience Employee acquired during employment.
Drafting Note The trade-secret backstop under the Ohio Uniform Trade Secrets Act
A broad Ohio non-compete draws the heaviest reasonableness scrutiny, while the Ohio Uniform Trade Secrets Act supplies a remedy that does not depend on any covenant: actual or threatened misappropriation of a trade secret may be enjoined under R.C. 1333.62, and the Act protects information that derives independent economic value from secrecy and is the subject of reasonable efforts to keep it secret . A confidentiality and customer-non-solicitation strategy built on that statutory backstop often protects the employer more durably than a non-compete that has to survive the full Raimonde analysis, and it holds even where the non-compete is trimmed or declined .
5. Permitted Disclosures and Protected Conduct
Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by applicable law, including Section 7 of the National Labor Relations Act (29 U.S.C. § 157); (d) testifying truthfully in legal proceedings; or (e) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.
6. Return, Deletion, and Certification of Company Property
Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request. The parties intend that these return, deletion, and certification mechanics serve as part of Employer's efforts reasonable under the circumstances to maintain the secrecy of its trade secrets, as contemplated by Ohio Rev. Code § 1333.61(D).
7. Non-Solicitation of Employees
During the Restricted Period, Employee must not Solicit, recruit, hire, or attempt to hire any Covered Employee. This restriction does not prohibit Employee from providing a professional reference upon request or from hiring a person who responds to a general advertisement not directed specifically at Employer's employees. This covenant reaches only Covered Employees during the Restricted Period and is no broader than necessary to protect Employer's workforce stability and goodwill.
8. Non-Solicitation of Customers, Vendors, Referral Sources, and Business Partners
During the Restricted Period, Employee must not Solicit the business of any Covered Customer. This covenant reaches only Covered Customers with whom Employee had material contact and is no broader than necessary to protect Employer's goodwill in its customer relationships. This covenant is directed at Employer's customer-goodwill interest and operates together with the confidentiality and trade-secret protections in this agreement.
9. No Business with Covered Customers
During the Restricted Period, Employee must not accept, service, or do business with any Covered Customer, regardless of whether Employee or the Covered Customer first initiated contact. This restriction is broader than non-solicitation because it applies even if the Covered Customer approaches Employee; because it presses harder on Employee, it is sized tightly to the goodwill it protects and reaches only Covered Customers with whom Employee had material contact.
10. Non-Competition
During the Restricted Period, Employee must not engage in, be employed by, consult for, or have an active ownership interest in any Competitive Business within the Restricted Territory. This covenant exists to protect Employer's Protected Interests — its Confidential Information, trade secrets, and customer goodwill — and not to restrain ordinary competition. The parties intend this covenant to be no greater than is required for the protection of Employer, to impose no undue hardship on Employee, and to cause no injury to the public, with its time and territory sized to Employee's actual role and Employer's actual market. If Employer has identified specific competitors in Cover Terms under Specified Competitors, the parties intend this covenant to be understood and, if necessary, enforced as limited to those named competitors. Passive Public Holdings are permitted.
Drafting Note Duration and territory
A fixed term or radius copied from another form is measured against the employer's actual market, not the source it came from: an Ohio court evaluates the restraint as a whole against the employer's real protectable interest, with no safe-harbor number, so a duration or territory sized to a different role or market is exposed to being trimmed or declined .
11. Non-Investment
During the Restricted Period, Employee must not acquire or hold any active ownership interest in, serve as a director, officer, manager, or advisor to, or have material economic participation in any Competitive Business. This restriction primarily targets active or material ownership in private competitors. Because this covenant restrains active roles at and material participation in a Competitive Business, it is drawn no broader than necessary to protect Employer's Protected Interests. Passive Public Holdings are permitted.
12. Non-Disparagement
During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, or exercising rights protected by law, including rights protected under Section 7 of the National Labor Relations Act.
13. Physician and Health Care Practitioner Covenants
If Employee is a physician, any covenant in this agreement restraining Employee from the practice of medicine is intended to use a narrow radius and a short term, to preserve patient access and continuity of care, and to be enforced only to the extent it is no greater than is required to protect Employer, imposes no undue hardship on Employee, and causes no injury to the public. The parties intend any such covenant to operate as a restraint tied to Employer's Protected Interests and not as an ordinary commercial restraint on the practice of medicine.
Drafting Note Heightened public-interest scrutiny for physician covenants
A physician covenant drafted like an ordinary commercial restraint meets heightened public-interest scrutiny in Ohio: a covenant restraining a physician-employee is unreasonable where it imposes undue hardship on the physician and injures the public because the physician's services are vital to the community and the demand for that expertise is critical . A narrow radius and a short term that preserve patient access and continuity of care are what let such a covenant survive that scrutiny, and a covered nonprofit-hospital clinician covenant would face a further statutory ceiling if Senate Bill 301 is enacted .
14. No Conflicting Obligations
Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.
15. Notice to Future Employers and Other Third Parties
Employer may disclose the existence and terms of this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach this agreement. Employee consents to this disclosure.
16. Tolling During Breach
If Employee breaches any restrictive covenant in this agreement, the Restricted Period for that covenant is extended by one day for each day of the breach, so that the full duration of the restriction runs from the date the breach ends. The parties further agree that a covenant in this agreement may not expire while the enforceability of the agreement is being litigated, so that the Restricted Period may be equitably extended until the litigation is resolved. Any such extension is itself a restraint that must remain reasonable and bounded; the parties do not intend an open-ended or indefinite extension.
Drafting Note A bounded extension-on-breach term
An Ohio covenant does not necessarily lapse on its stated end date while a dispute is pending: under Homan, a covenant may not expire while the enforceability of the agreement is being litigated, so the restricted period can be tolled until the case resolves . That judicial tolling is equitable rather than automatic, and any contractual extension-on-breach term is measured against the same Raimonde reasonableness backdrop, so an open-ended or indefinite extension is exposed to being cut back like any other overbroad restraint, while an extension bounded to the duration of the breach stands with the covenant it protects .
17. Remedies
Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate. Employer may seek injunctive or other equitable relief in addition to any other remedies available at law, including relief under the Ohio Uniform Trade Secrets Act, Ohio Rev. Code § 1333.62(A), under which actual or threatened misappropriation of a trade secret may be enjoined independent of any covenant.
18. Enforceability and Severability
If any provision of this agreement is found to be unenforceable, the remaining provisions remain in full force and effect. Each restrictive covenant in this agreement is intended to be independently enforceable, so that a court's refusal to enforce one covenant, or a court's decision to enforce a covenant only to a reasonable extent, does not affect the others.
19. Reformation
Employer requests that a court modify or amend any restraint in this agreement found to be overbroad and enforce it to the extent necessary to protect Employer's legitimate interests. Each restrictive covenant in this agreement is drawn as a tiered, severable, reasonable restraint sized to the Protected Interests from the start and is intended to be enforceable as written rather than in reliance on judicial revision.
Drafting Note Reformation
Reformation is a discretionary repair, not a safety net an aggressive Ohio covenant can count on: a court may refuse to rewrite a covenant so overbroad that reforming it would require rebuilding the agreement, leaving it unenforceable, and a one-sided fee clause can shift fees to the departing employee when the covenant fails . Tiered, severable, reasonable restraints survive that refusal where a single grasping covenant does not.
20. Survival and Expiration of Each Covenant
Each restrictive covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms. Obligations under the Confidential Information and Trade Secret Protection section survive indefinitely to the extent they relate to trade secrets. All other provisions survive to the extent necessary to enforce rights that arose during employment.
21. Assignment and Successors
Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns. This express assignment and successor-and-assigns language lets a buyer enforce the covenants in a transaction that is not a statutory merger.
Drafting Note Assignment
Acordia reaches only covenants that pass by statutory merger, so a covenant silent on assignment can raise a live assignability question in an asset deal, where the buyer may be unable to enforce the restraint. Express assignment and successor-and-assigns language carries the covenant to a buyer in a transaction that is not a statutory merger .
22. Governing Law, Venue, and Dispute Process
This agreement is governed by the law listed in Cover Terms. Disputes will be resolved in the courts of the Governing Law state, subject to non-waivable rights under applicable law. The parties intend that the governing-law and venue choices match where Employee actually lives and works.
23. Entire Agreement, Amendment, Waiver, and Electronic Signatures
This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject. This agreement may be amended only in writing signed by both parties. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.
Signatures
By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.
Employer
Employer: [Legal name of the employer]
Signature:
Signatory Name: [Full name of the authorized signatory signing for the employer]
Title: [Title of the authorized signatory signing for the employer]
Date:
Employee
Signature:
Print Name: [Full legal name of the employee]
Date: