Ohio Senators Introduce Bill to Ban Non-Compete Agreements

April 03, 2025 |

Commercial Litigation

On January 22, 2025, Ohio state Senators Louis W. Blessing (R) and William P. DeMora (D) introduced Senate Bill 11, which, if enacted, would prohibit employers from entering into and/or enforcing a noncompete agreement with a “worker” or “prospective worker”. Though the Federal Trade Commission (“FTC”) previously attempted to ban non-compete agreements at the national level, this move marks Ohio’s attempt to ban non-competes at the State level.

The FTC’s Past Attempt at Banning Non-Compete Agreements

Back in April 2024, the FTC made headlines when it established a new regulation that invalidated existing non-compete agreements and prohibited employers from entering into new non-compete agreements with few exceptions. This new regulation was especially significant because the FTC estimated that approximately 30 million people in the United States are affected by non-compete agreements.

The FTC’s ban on non-compete agreements, however, was short-lived. A few months later, in August 2024, Judge Ada Brown granted a motion for summary judgment in a case challenging the FTC’s rule in the United States District Court for the Northern District of Texas. Judge Brown held that “the FTC lacks statutory authority to promulgate the Non-Compete Rule, and that the Rule is arbitrary and capricious. Thus, the FTC’s promulgation of the Rule is an unlawful agency action.” The FTC has appealed this decision to the U.S. 5th Circuit Court of Appeals; however, the Trump Administration is currently evaluating whether the FTC will continue to defend the rule. The Justice Department has requested and recently received a 120-day stay from the Court of Appeals during which the Administration is to determine if it will continue the litigation to defend the rule or withdraw its defense in which case the rule will die.

Plakas Mannos has already written extensively about the FTC’s attempt to ban non-compete agreements, and you can read more about them below:

Non-Compete Contracts

News Alert: FTC Votes to Ban Non-Compete Agreements

Federal Judge Rules the FTC’s Non-Compete Ban “Shall Not Be Enforced”

With the introduction of Ohio Senate Bill 11, the FTC’s attempt at banning non-compete agreements has been given new life—at least at the State level.

What Does Ohio Senate Bill 11 Say? What will it Do?

Senate Bill 11, which would modify sections 4119.01, 4119.02, 4119.03, and 4119.04 of the Ohio Revised Code, would, generally speaking, prohibit employers from entering into and/or enforcing a non-compete agreement with a “worker” or “prospective worker”. “Worker” is defined broadly and includes “an employee, independent contractor, extern, intern, volunteer,” and any “individual who provides services for an employer.”

To be more specific, Senate Bill 11 would prohibit employers from enforcing agreements that:

Prohibit the worker from working for another employer for a specified period of time or within a specified geographical area;

Require the worker to pay for lost profits, lost goodwill, or liquidated damages because the worker terminated the work relationship; or

Impose a fee or cost on the worker for terminating the work relationship.

Senate Bill 11 does not address non-solicitation provisions or confidentiality agreements. This bill will likely apply retroactively to existing non-compete agreements, as it specifically states that “[a]n agreement, or part of an agreement, between an employer and worker entered into… after the effective date of [the bill] that is prohibited… is void.”

Senate Bill 11 creates a private cause of action where workers may sue their employers for violation of the act and recover their (1) actual damages; (2) punitive damages not to exceed $5,000; (3) injunctive relief; and/or (4) their reasonable attorney fees and costs incurred in the litigation.

ohio non-compete agreements

What Are the Chances That This Bill Will Become Ohio Law?

Whether Senate Bill 11 will become Ohio law is uncertain. Should Senate Bill 11 receive approval from both the Senate and the House and become law, Ohio would become one of only a handful of states in the country to ban non-compete agreements. The other states include California, Minnesota, Oklahoma, and North Dakota. Cal. Bus. & Prof. Code § 16600.1; MN ST § 181.988; N.D.C.C. § 9-08-06; 15 Okl.St.Ann. § 219A.

Though it may seem unlikely that Senate Bill 11 will become law, the bill has bipartisan support. The bill was sponsored by both Republican Senator Louis W. Blessing, III, who represents Ohio's 8th Senate District, which encompasses a portion of Hamilton County, and Democratic Senator Bill DeMora, who represents the 25th Senate District, which encompasses areas of Franklin County. Whether this bill will gain support in the legislature or from Ohio Governor Mike DeWine is still unknown.

What Does This Mean for Ohio Employers and Employees?

Non-compete agreements are often critical to a company’s employment decisions, operational decisions, and how they protect their trade secrets and intellectual property from competitors. If Senate Bill 11 passes through the legislature and becomes Ohio law, employees and employers may have questions regarding existing non-compete agreements. Employers in particular may question how they can protect their trade secrets and intellectual property moving forward.

The non-compete agreement lawyers at Plakas Mannos are continuing to monitor Senate Bill 11’s passage through the Ohio legislature. Should Senate Bill 11 become Ohio law, it will undoubtedly affect countless Ohio employees and employers. Our attorneys are happy to help both employees and employers answer any questions and assist businesses in exploring new ways to protect their trade secrets and intellectual property. If you have any questions, contact our Akron or Canton office to discuss your case with our non-compete agreement attorneys.