What is the Raimonde test for non-competes in Ohio?

The Raimonde test, from the 1975 Ohio Supreme Court case, requires that a non-compete be no greater than necessary to protect legitimate business interests, not impose undue hardship on the employee, and not be injurious to the public. Courts also have power to modify overbroad restrictions.

Can Ohio courts rewrite an overbroad non-compete?

Yes. Under the Raimonde framework, Ohio courts can modify unreasonable non-competes by reducing duration, narrowing geography, or limiting scope to make them enforceable rather than voiding them entirely.

Non-Compete Agreements in Ohio: The Raimonde Test

Q: Is continued employment enough consideration for an Ohio non-compete?

Yes. In Lake Land Employment Group v. Columber (2004), the Ohio Supreme Court held that continued at-will employment is sufficient consideration for a non-compete presented to an existing employee, without requiring additional compensation.

The General Rule in Ohio

Ohio enforces non-compete agreements under the framework established in Raimonde v. Van Vlerah (1975). This landmark Ohio Supreme Court decision set the reasonableness standard that courts apply to this day, along with the power to modify overbroad restrictions.

The Raimonde Reasonableness Test

Under Raimonde, a non-compete is enforceable if it is reasonable considering:

Whether the restriction is no greater than necessary to protect the employer's legitimate business interests
Whether it does not impose undue hardship on the employee
Whether it is not injurious to the public

The court examines the totality of circumstances, including the duration, geographic scope, activity restrictions, and the employer's justification.

Legitimate Business Interests in Ohio

Ohio courts recognize:

Trade secrets and confidential information
Customer contacts and relationships developed during employment
Specialized training and knowledge that the employer invested in
Goodwill associated with the employer's business

Duration, Geography, and Scope

Duration: Ohio courts have upheld restrictions from one to three years. Two years is common and widely considered reasonable. In Lake Land Employment Group v. Columber (2004), the Ohio Supreme Court addressed consideration issues but did not set a maximum duration.
Geography: Must be tied to the employer's competitive market. Ohio courts evaluate whether the geographic restriction corresponds to the area where the employee had customer contact or competitive influence.
Activity scope: Must be limited to the specific type of work that competes with the employer. Blanket restrictions on working in an entire industry are disfavored.

Judicial Reformation

A significant feature of Ohio law, established in Raimonde, is the court's power to modify overbroad non-competes to make them reasonable. Courts can reduce duration, narrow geography, or limit the scope of restricted activities. This is favorable to employers but means employees may still face restrictions even when the original terms were excessive.

Consideration: The Columber Rule

In Lake Land Employment Group v. Columber (2004), the Ohio Supreme Court held that continued at-will employment is sufficient consideration for a non-compete agreement presented to an existing employee. This is an employer-friendly position that distinguishes Ohio from states requiring independent additional consideration.

Red Flags

Duration significantly exceeding three years
Nationwide scope for a locally-focused role
No identifiable trade secrets or customer relationships
Restrictions covering entirely different types of work
Employer invoking the non-compete after firing the employee without cause

When to Consult a Lawyer

Consider consulting an Ohio employment attorney if you are evaluating a non-compete, planning to leave for a competitor, or responding to enforcement. Ohio's reformation doctrine makes outcomes fact-dependent and difficult to predict without specific legal analysis.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.