Cleveland, OH asked in Contracts and Employment Law for Ohio

Q: Can my brokerage enforce this? See details.

My employer/brokerage had us all sign a new contract today, I thought it was the same as the original one I signed when I started employment because they didn't state any changes.

One of the new stipulations under the contract is that if I am terminated/quit I cannot practice real estate as an agent within 50 miles of the office for two years after my termination.

Can they enforce this?

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1 Lawyer Answer
Bruce Martin Broyles
Bruce Martin Broyles
Answered
  • Lancaster, OH
  • Licensed in Ohio

A: Covenants not to compete or non-competition clauses are disfavored by the Courts in Ohio. They are enforceable but are seen as a restraint of trade. First, there has to be consideration. Allowing you to remain employed in an at will position is sufficient consideration. Second, the restriction must be reasonable. Fifty miles seems to be overly broad and two years seems too long. A court would likely narrow the scope and the time. Third, the restraint must be necessary. The factors considered by the Court are the skills that were developed, the information that was provided, and the efforts taken by the employer to protect otherwise confidential information.

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