A new bill introduced Wednesday in the Ohio General Assembly would ban noncompete contracts as a condition of employment across the state.

If Ohio passes the bill, it would be the fifth state to ban noncompetes. Some 33 states restrict their use. Frontline workers who make up a large part of the long-term care workforce arguably would stand to benefit from a ban on noncompete agreements. 

“Ohio is currently one of fewer than a dozen states without legislation on noncompetes, such as prohibiting them, requiring notice, limiting them to high-wage earners, or other similar limitations,” the attorneys said. “Instead, the enforceability of noncompetes in Ohio remains governed by the 1975 Ohio Supreme Court case Raimonde v. VanVlerah, which sets forth factors for a court to consider as to whether a restrictive covenant is reasonable and based upon a protectable business interest.”

Under the current bill submitted by State Sens. Bill Blessing (R) and Bill DeMora (D), employers would be prohibited from entering into or even attempting to enter into a noncompete agreement with a worker or “prospective worker.” The legislation also provides for civil action by employees who claim their employer violated the prohibitions.

A final federal rule issued in April by the Federal Trade Commission prohibited employers across the country from using noncompete agreements in most instances. The rule was struck down by a federal judge in August, however, a move that was celebrated by by the senior living and care industries, among other business and employer groups. 

The FTC is appealing the decision. It is unclear whether the current administration will pursue the Biden-era ban or drop the appeal, leaving it to states to regulate noncompete agreements, according to attorneys at Ogletree Deakins.

It’s soon to predict whether the Ohio bill will have any momentum in the General Assembly, “but state-level limitations on restrictive covenants have been trending in the last decade,” Ogletree Deakins said.

The lawyers noted that although the US Chamber of Commerce challenged the FTC’s noncompete ban as “unlawful” and “a blatant power grab,” the Ohio Chamber of Commerce has remained silent on the proposed state bill to date.