Ohio Senate Bill 11 (SB11)—supported by members from both sides of the political spectrum—has been introduced in the Ohio Legislature, aiming to prohibit employment agreements that restrict employees from competing with their former employer after the conclusion of an employment relationship. This bipartisan bill could significantly impact employers and employees across the state, particularly those industries in which non-compete agreements are commonly used.
Introduced on January 22, 2025, SB11 was subsequently referred to the Senate Judiciary Committee on January 29, 2025, with a third hearing held on March 5, 2025. If enacted, SB11 would prohibit employers from enforcing agreements that (1) restrict employees from working for another employer within a specified timeframe or geographic area; (2) require employees to pay for lost profits or liquidated damages upon termination; and/or impose fees or costs on employees for ending their employment relationship. Notably, the bill does not address confidentiality or non-solicitation agreements, meaning those provisions may remain enforceable.
As SB11 moves through the legislative process, employers should anticipate potential amendments and discussions surrounding its scope and enforcement. If enacted, businesses—particularly those in industries in which proprietary knowledge, customer relationships, and specialized skills are key competitive advantages—may face significant challenges. Employers rely on non-compete agreements to safeguard trade secrets, prevent former employees from immediately joining direct competitors, and protect long-term investments in talent development. Some businesses may need to explore alternative strategies, such as strengthening confidentiality agreements, enhancing employee retention programs, and relying more heavily on non-solicitation clauses to mitigate potential harm.
