Ohio Legislature Introduces Bill to Ban Noncompete Agreements

A new bipartisan bill in the Ohio Legislature, Senate Bill 11, seeks to prohibit certain restrictive employment agreements, including noncompete clauses. Sponsored by Republican state Sen. Louis “Bill” Blessing and Democratic state Sen. William “Bill” DeMora, the legislation aims to protect worker mobility and promote fair employment practices.

Specifically, this legislation would void agreements that:

• Restrict an employee from working for another employer within a set time frame, geographic area, or similar role after leaving their job.
• Impose financial penalties on employees for terminating their employment.
• Require employees to resolve disputes outside Ohio or under non-Ohio laws unless they have independent legal counsel.

While SHRM agrees that noncompete agreements are unnecessary and inappropriate for certain workers, a blanket ban on their use could have unintended consequences that harm both workers and employers. Protecting worker mobility and promoting a well-functioning labor market is essential; however, blanket bans overlook the value of well-structured, narrowly tailored noncompete agreements for appropriate workers. For this reason, SHRM has consistently advocated for policymakers to find an equitable balance between the interests of employers and employees. We will continue to advocate for policies that support both groups and urge Ohio lawmakers to consider alternative solutions rather than implementing a sweeping ban.