Are Non-Competition Agreements between employer and employee valid?

Generally, yes.  A covenant not to compete, or non-compete agreement, is a promise by an employee to refrain from engaging in a competing business.  It is enforceable in Ohio so long as:

The promise is supported by some consideration

For any contract to be valid, it must be supported by consideration, which in this case is the thing of value given by the employer in exchange for the promise not to compete.  Consideration is typically found in these types of agreements.  The promise of continued employment, if even for one more day, may be sufficient consideration.  That means that at-will employees and existing employees can be asked to sign a covenant not to compete. 

The employer has a legitimate interest to protect by restricting competition

Trade secrets, confidential information, customer lists, and the like are the types of interests the courts will deem legitimate.  Conversely, if you are a ticket taker at the local cinema, your employer would have a hard time enforcing a non-compete.

The restriction is no greater than necessary to protect the employer’s interests

The restrictions must be reasonable in length and geographical scope.  If your company does business in Summit County only, a restriction against competing in the State of Ohio would be overly broad.  Although more difficult to evaluate, the time length of the restriction must be reasonable and an open ended non-compete will not be enforced.  Keep in mind that the courts have the authority to reform your contract to make it enforceable by limiting the geographic scope or time. 

The restriction does not impose and undue burden on the employee

The key term here is “undue”.  No question that your inability to work in an industry for which you are trained will create a burden for you.  The court will weigh the nature of that burden while trying to give effect to a promise you have made.

The restriction is not injurious to the public

The court will look to see whether enforcing your agreement will damage the public as a whole, and if so, will strike down the contract for violating public policy.  It is hard to imagine a scenario where this might apply, so don’t hang your hat on it as a defense.  However, if I were a doctor who was employed by a large hospital and my office served a rural area with limited medical facilities, perhaps enforcing a non-compete would be injurious to the public.  We would call it the Doc Hollywood defense. 

Damages

If you violate a non-compete, you may be liable for monetary damages representing lost profits.  Non-competes typically have provisions permitting the employer to obtain a temporary restraining order to enforce the non-compete.  That means that your company can go to court and get an order, usually in one day, prohibiting you from working.  Yes this is legal, and enforceable, and it is done. 

 If you are asked to sign a non-compete, you should not enter into the agreement lightly.  You should consult legal assistance.