Ohio Senate bill to ban noncompete contracts

On February 5, 2025, Ohio state Senators Bill Blessing (R-Colerain Township) and Bill DeMora (D-Columbus) filed Senate Bill (SB) 11, which would prohibit employers from entering into or attempting to enter into a noncompete agreement with a worker or “prospective worker.” The bill has garnered bipartisan support.

Opponents got their chance Wednesday, March 5th, to weigh in on an Ohio Senate measure as reported in the Capital Journal. However, some Proponents also testified in person including Caleb Tuten who testified on behalf of Veeva Systems. Tuten argued that noncompetes stifle mobility and entrepreneurship, depress wages and restrict employers’ access to the most talented employees.

Over the past decade, state-level restrictions on restrictive covenants have been on the rise. This trend may persist, especially following the 2024 Federal Trade Commission (FTC) rule that aimed to prohibit nearly all noncompete agreements in employment but was overturned in court. With uncertainty surrounding whether the Trump administration will uphold these protections, the regulation of noncompete agreements may remain in the hands of individual states.

What would be the impact of Ohio SB 11, if enacted?

If enacted, Ohio Senate Bill 11 (SB 11) would significantly impact employer-worker agreements by prohibiting certain restrictive covenants that limit a worker’s ability to seek or accept employment or operate a business after their relationship with an employer ends. Specifically, the bill would render unenforceable agreements that:

• Require a worker to compensate the employer for lost profits, goodwill, or liquidated damages due to the termination of the employment relationship.
• Restrict a worker from engaging in employment with another employer for a specified period, within a specific geographic area, or in a capacity similar to their previous role.
• Impose fees or costs on a worker for terminating their employment.
• Require a worker to reimburse the employer for expenses related to training, orientation, evaluation, or other services intended to enhance job performance.

Any such agreements entered into, modified, or extended after the bill’s effective date would be considered void.

Additionally, SB 11 would establish a private right of action, allowing workers to file civil claims against employers for violations. Remedies available to workers would include damages such as attorneys’ fees, actual damages, punitive damages up to $5,000, and injunctive relief. The bill would also permit workers to file complaints with the Attorney General or the Director of Commerce, who would have the authority to investigate and take legal action on behalf of affected workers.

Learn more:

For an explanation on the issue watch How Corporate America TRAPS Workers With Non-Competes | Breaking Points w/Matt Stoller Since this video was produced the circuit court paused the FTC rule, kicking the issue to the states. Ohio’s SB 11 is one of several state bills. State governments continue to tighten restrictions on non-competes as public support to ban it increases across the country. State laws in North Dakota and Oklahoma prohibit the enforcement of the contracts—and California doesn’t recognize them at all.

How do non-competes affect your business? Tell us in the comments below.