Ohio Non-Compete and Non-Solicitation Agreements in Hospitality

Ohio Non-Compete and Non-Solicitation Agreements in Hospitality: Key Takeaways

• Ohio courts enforce non-compete agreements if their duration, geographic scope, and business interest protection are reasonable, typically 6 months to 2 years.
• Non-solicitation agreements preventing former employees from contacting clients or coworkers are enforceable with reasonable terms in Ohio.
• Federal efforts to ban most non-compete agreements nationwide have been blocked by a federal judge, keeping current rules intact.
• Ohio Senate Bill 11 aims to ban all post-employment non-compete agreements but is still under legislative consideration as of August 2025.

Non-compete and non-solicitation agreements play a key role in Ohio’s hospitality industry employment contracts.

However, evolving federal challenges and proposed state laws create uncertainty around their future enforceability.

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1. Ohio Non-Compete Agreements in the Hospitality Industry

Ohio enforces non-compete agreements so long as they are reasonable and tailored to protect legitimate business interests.

Reasonableness considers the agreement's time length, geographic scope, and impact on the employee.

Typical durations deemed reasonable range from six months to two years, balancing employer protection with employee mobility.

For hospitality businesses, these agreements safeguard trade secrets, customer lists, and other confidential information from competitors.

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Employers should ensure terms do not impose undue hardship on employees, as Ohio courts may refuse enforcement otherwise.

2. Ohio Non-Solicitation Agreements and Their Role in Hospitality

Non-solicitation agreements are common in Ohio hospitality contracts, prohibiting former employees from soliciting clients or coworkers after leaving.

The enforceability depends on the agreement’s reasonableness regarding time and geographic limits.

For example, preventing a former server from directly soliciting regular customers for competing venues helps protect a business's client base.

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Likewise, agreements preventing poaching of current employees help maintain workforce stability.

3. Federal Developments Impacting Non-Compete Agreements in Ohio

Recently, the Federal Trade Commission (FTC) sought to ban nearly all non-compete clauses nationwide due to their negative impact on wages and market competition.

The FTC rule issued in April 2024 would have prohibited use of these agreements across all industries, including hospitality.

However, a federal judge in Texas blocked this rule in August 2024 through a nationwide injunction, halting its implementation.

The FTC is considering appealing this decision, but as of mid-2025 the ban is not effective, and Ohio employers must continue following existing laws.

To strengthen retention regardless of legal changes, consider ways to reduce employee turnover.

4. Ohio Legislative Efforts Targeting Non-Compete Agreements

Ohio Senate Bill 11, introduced in February 2025, aims to completely prohibit non-compete agreements and other restrictive employment contracts within the state.

This bipartisan bill would render any post-employment non-compete or restrictive clause illegal regardless of duration or location restrictions.

The proposed legislation also targets agreements that penalize employees for quitting or require repayment for training costs.

As of August 2025, Senate Bill 11 has not been enacted and is still under consideration by Ohio lawmakers.

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5. Implications for Ohio Hospitality Employers

Hospitality industry employers often use non-compete and non-solicitation agreements to protect competitive advantages tied to employees' roles.

However, ongoing federal legal challenges and potential changes from Senate Bill 11 create uncertainty around the future enforceability of such agreements.

Employers need to continuously monitor these developments to adjust their employment contracts accordingly and avoid unenforceable clauses.

Consulting with experienced employment law attorneys is advisable to ensure contracts comply with current rules while protecting business interests.

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6. Best Practices for Ohio Hospitality Employers Regarding Non-Compete and Non-Solicitation Agreements

To stay compliant and reduce legal risks, Ohio hospitality employers should follow key best practices:

• Keep non-compete durations limited to reasonable time frames, generally no longer than two years.
• Define geographic scope narrowly reaching only areas where the employer operates or has legitimate interests.
• Clearly describe business interests or trade secrets the agreements protect.
• Use specific, reasonable restrictions on solicitation of clients and employees aligned with business needs.
• Regularly review and update agreements to reflect current legal standards and pending legislation.
• Provide employees with clear notice of their rights and obligations regarding post-employment restrictions.
• Consult legal counsel when drafting or enforcing agreements to avoid overly restrictive or unenforceable terms.

To standardize expectations, reference the bartender job description when drafting agreements.

7. Useful Resources for Ohio Hospitality Employers

For authoritative and up-to-date information, Ohio hospitality employers can consult these official resources:

• Federal Trade Commission (FTC) – for federal policy updates related to non-compete agreements.
• Ohio Legislature – for tracking legislative proposals such as Senate Bill 11 affecting employment restrictions.
• Ohio Department of Commerce – for state employment regulations and compliance guidance.

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Ohio Non-Compete and Non-Solicitation Agreements in Hospitality: Conclusion

Ohio enforces non-compete and non-solicitation agreements in the hospitality sector when they are reasonable and protect legitimate business interests without unduly burdening employees.

However, federal attempts to broadly ban non-competes and proposed Ohio legislation signal potential major changes ahead.

Hospitality employers should stay informed, implement balanced agreements, and seek legal advice to navigate this dynamic landscape effectively.