Upholding Business Protections Amid Non-Compete Debates in Ohio

As we approach Labor Day on September 1, 2025—a holiday rooted in honoring the American worker's contributions to our nation's prosperity—it's fitting to reflect on the delicate balance between employee rights and the freedoms that empower businesses to thrive.

At Arnold Gruber, Ltd., Attorneys at Law, we believe in an approach that champions free enterprise, contractual liberty, and the protection of hard-earned innovations. This Labor Day, we're focusing on a pressing issue facing Ohio employers: the ongoing debate over non-compete agreements, spotlighted by Senate Bill 11 (SB 11).

Introduced on January 22, 2025, by bipartisan sponsors Senators Louis W. Blessing III (R-Columbus) and William P. DeMora (D-Columbus), SB 11 seeks to prohibit employers from entering into non-compete agreements with workers, including employees and independent contractors. If enacted, the bill would bar any post-employment restrictions that prevent workers from pursuing careers or starting businesses in the same field, regardless of the agreement's reasonableness.

It also introduces a private right of action, allowing affected individuals to sue for damages, and voids any conflicting provisions in existing contracts. As of now, the bill remains under consideration in the Senate Judiciary Committee, having undergone hearings earlier this year, but it has drawn strong opposition from business groups concerned about government overreach.

Non-compete clauses are essential tools for safeguarding business interests in a competitive economy. They protect intellectual property, trade secrets, and the significant investments companies make in training their workforce. Without them, employers risk losing proprietary knowledge to competitors, stifling innovation and economic growth. As highlighted in a coalition letter from Ohio's business community, including chambers of commerce, SB 11 "upends freedom of contract rights" by interfering with voluntary agreements between employers and employees.

This aligns with some longstanding principles: limited government intervention in private contracts and the promotion of self-reliance through robust property rights. Ohio's current common law already requires non-competes to be reasonable—tailored to protect legitimate interests without unduly burdening workers—striking a fair balance that SB 11 threatens to disrupt.

For Ohio businesses navigating this uncertainty, proactive steps are crucial. While monitoring the bill's progress, consider bolstering alternative protections. Strengthen non-disclosure agreements (NDAs) to guard confidential information, and refine non-solicitation clauses to prevent poaching of clients or employees. Leverage Ohio's Uniform Trade Secrets Act for legal recourse against misappropriation. Conducting audits of existing employment contracts can ensure they comply with potential changes while maximizing enforceability under current law.

At Arnold Gruber, Ltd., we specialize in defending business autonomy in an era of increasing regulation. Our team can help you revise agreements, explore litigation strategies if needed, and advocate for policies that preserve economic freedom. This Labor Day, let's celebrate not just labor, but the entrepreneurial spirit that drives it.

For a contract review or consultation on non-compete strategies, contact Richard Arnold at Arnold Gruber, Ltd., visit aghattorneys.com or call at 330-563-4149.