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Ohio Employment Contract

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What is an Ohio Employment Contract?

An Ohio employment contract is a legally binding agreement between an employer and a new employee hired to work for the employer. Employment contracts serve the important purpose of outlining each party’s rights and obligations in the working relationship.

Once an employment contract is executed, the parties are bound by the terms of the agreement. Usually this means that the employee is agreeing to perform the duties laid out in the contract and abide by company policy while the employer is agreeing to compensate the employee with wages and benefits.

Common terms and conditions covered in an employment contract include:

  • Job title and duties
  • Compensation
  • Benefits
  • Disciplinary procedures
  • Causes for termination
  • Company policies and standards

Ohio is one of the many states that follows the laws of “at will” employment. Under at will employment doctrine, employers are free to fire workers at any time without a reason and without advanced notice. One way to be protected from this law is to have an employment contract that outlines causes for termination. An employment contract supersedes at will employment so an employer can only terminate the employee within the confines of the agreement.

Employment contracts can also protect employers using restrictive covenants. A restrictive covenant is a clause that prohibits employees from certain actions like competing against the employer or revealing confidential trade secrets.

Are Employment Contracts Enforceable in Ohio?

Yes. Employment contracts are enforceable in Ohio and are governed by Ohio contract laws. This means that to be enforceable the contract must contain an offer, acceptance of the offer, and consideration. In employment contracts consideration is most often the work performed in exchange for compensation.

If an employment contract contains a non-compete clause, the enforcement of the contract may come into question. Ohio tends to enforce non-compete agreements, but the contract must meet certain requirements.

To enforce a non-compete clause, the following criteria must be considered:

  1. The restrictions of the non-compete must be no greater than necessary to protect the employer’s business interests
  2. It cannot impose undue hardship to the employee
  3. It cannot be injurious to the public

The courts will consider the reasonableness of the agreement to determine whether it should be enforced.

What Are the Legal Requirements for Ohio Employment Contracts?

It is legal for an Ohio employment contract to be in the form of a verbal agreement, but it is highly recommended that the contract is written down and signed by both parties. A written contract avoids misunderstandings, helps settle disputes, and if a dispute reaches the courtroom, the contract is available for evidence.

Employment contracts cannot violate any Ohio labor laws or go against public policy. For example, the contract cannot require an employee to agree to work for less than minimum wage.

Types of Ohio Employment Contracts

Ohio employers use various types of employment contracts depending on the purpose of the contract and the type of employee hired. The following contracts are most commonly used for hiring employees and workers in Ohio:

  • Permanent employment contract. The most common type of employment contract used to hire permanent employees. The employee will have regular hours, duties, and compensation.
  • Fixed term employment contract. Used for workers who will only work for a specific period of time or to complete a specific job. At the end of the contract, employees are either brought into permanent employment or a new contract with a new term is executed.
  • Independent contractor agreement. Companies need a specific contract when hiring a contractor or a freelance worker because these workers are not company employees and will be governed by different laws.

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Christopher R. on ContractsCounsel
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Paul S. on ContractsCounsel
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Paul S.

CEO
Free Consultation
Cincinnati, OH
38 Yrs Experience
Licensed in CA, OH
Boston University

I focus my practice on startups and small to mid-size businesses, because they have unique needs that mid-size and large law firms aren't well-equipped to service. In addition to practicing law, I have started and run other businesses, and have an MBA in marketing from Indiana University. I combine my business experience with my legal expertise, to provide practical advice to my clients. I am licensed in Ohio and California, and I leverage the latest in technology to provide top quality legal services to a nationwide client-base. This enables me to serve my clients in a cost-effective manner that doesn't skimp on personal service.

Matthew R. on ContractsCounsel
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Matthew R.

Attorney
Free Consultation
Denver, Colorado
17 Yrs Experience
Licensed in CO, OH
Case Western Reserve University

I am an attorney located in Denver, Colorado with 13 years of experience working with individuals and businesses of all sizes. My primary areas of practice are general corporate/business law, real estate, commercial transactions and agreements, and M&A. I strive to provide exceptional representation at a reasonable price.

Tim E. on ContractsCounsel
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Tim E.

Founding Member/Attorney
Free Consultation
Cleveland, OH
10 Yrs Experience
Licensed in OH
Cleveland State University College of Law

Tim advises small businesses, entrepreneurs, and start-ups on a wide range of legal matters. He has experience with company formation and restructuring, capital and equity planning, tax planning and tax controversy, contract drafting, and employment law issues. His clients range from side gig sole proprietors to companies recognized by Inc. magazine.

Elizabeth R. on ContractsCounsel
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Elizabeth R.

Attorney
Free Consultation
Columbus, Ohio
13 Yrs Experience
Licensed in FL, OH
Florida International University School of Law

Elizabeth is an experienced attorney with a demonstrated history of handling transactional legal matters for a wide range of small businesses and entrepreneurs, with a distinct understanding of dental and medical practices. Elizabeth also earned a BBA in Accounting, giving her unique perspective about the financial considerations her clients encounter regularly while navigating the legal and business environments. Elizabeth is highly responsive, personable and has great attention to detail. She is also fluent in Spanish.

Robert D. on ContractsCounsel
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Contracts

Employment Contract

Ohio

Asked on Apr 13, 2023

What's personal leave in an employment contract?

I have recently been offered a job, and the employment contract I have been provided with states that I am entitled to personal leave. I am not sure what this is, or what it entitles me to. I would like to know what rights and responsibilities I have regarding personal leave, and what the employer's expectations are of me with regards to this leave.

Jeffrey K.

Answered Apr 14, 2023

Personal leave sometimes replaces vacation and sick time. Some employers just give employees time off for whatever reason the employee chooses. To know more about the rights and responsibilities, you should speak to HR at your new employer who will help you with the employer's expectations and your rights under the leave provision in your contract. Also, look at your contract as it may provide insight as to how to implement the leave. When in doubt, speak to HR. Thanks.

Read 1 attorney answer>

Arbitration

Employment Contract

California

Asked on Apr 27, 2023

What's the arbitration agreement in an employment contract?

I am currently in the process of negotiating an employment contract with a new employer. I am concerned about the arbitration agreement in the contract, as I am not sure what it is or how it could affect me in the future. I want to make sure that I understand the implications of the arbitration agreement before signing the contract.

Gagandeep K.

Answered May 27, 2023

An arbitration agreement is a legally binding contract between two parties or more so in this case between you and the employer. In the Arbitration Agreement both parties agree to use alternative dispute resolution (e.g., mediation, settlement conferences, neutral evaluation, arbitration) rather than pursuing civil court litigation in case a dispute arises. The Arbitration Agreement typically describes the scope of the disputes covered as well as the process, procedure and other requirements related to arbitration. You can read more about Arbitration Agreement here https://www.contractscounsel.com/t/us/arbitration-agreement.

Read 1 attorney answer>

Employment

Employment Contract

California

Asked on Apr 22, 2023

What's intellectual property in an employment contract?

I recently accepted a job offer that contained an employment contract. The contract states that I will not use any intellectual property of the company without prior written consent. I am unsure what exactly constitutes as intellectual property and would like to get a better understanding of the definition of intellectual property in the context of an employment contract.

Russell M.

Answered Apr 28, 2023

Your Agreement may contain a definition like this: “Intellectual Property” means recognized protectable rights and interests such as: patents (whether or not issued), copyrights, trademarks, service marks, applications for any of the foregoing, inventions, Confidential Information, trade secrets, trade dress, domain names, logos, insignia, color combinations, slogans, moral rights, right of publicity, author’s rights, contract and licensing rights, works, mask works, industrial design rights, rights of priority, know how, design flows, methodologies, devices business processes, developments, innovations. But a few of these are going to be most likely available to you. Internal company know-how or “ how we do things here that help us succeed”. Note the words “Confidential Information”. Confidential Information is another defined term which includes customer and employee information, pricing and business strategy and plans, among others.

Read 1 attorney answer>

Employment

Employment Contract

North Carolina

Asked on Apr 18, 2023

What's termination notice in an employment contract?

I recently accepted a job offer with a new company and I was given an employment contract to sign. I was looking through the contract and noticed that it mentions something about a termination notice. I'm not sure what this means or how it applies to my employment, so I wanted to ask a lawyer to get a better understanding of this clause.

Ryan D.

Answered May 30, 2023

A termination notice is a provision in an employment contract that specifies the amount of notice an employer must give an employee if they wish to terminate the contract, or vice versa if the employee wishes to leave. This is an important clause, as it offers some level of job security for the employee and some level of predictability for the employer. In most states, including North Carolina, employment is considered "at-will" unless there is a contract in place that states otherwise. This means that either the employer or the employee may terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the reason isn't illegal (like discrimination). If your contract includes a termination notice clause, this "at-will" status is likely modified to some extent. The specific details would depend on the exact wording in your contract. It could require either party to provide a notice (often 2 weeks, 1 month, or sometimes longer) before terminating the contract. That notice period is intended to give the other party time to adjust plans accordingly. For the employee, it might mean finding a new job; for the employer, it might mean finding a replacement.

Read 1 attorney answer>

Employment

Employment Contract

California

Asked on Oct 4, 2022

What is fixed term employment contract?

I have been given a contract that says 'Fixed Term Employment Contract'. How is this different than a normal employment contract? Is there anything I need to consider before signing this?

Christopher M.

Answered Oct 7, 2022

Generally a fix term employment contract differs from a genera employment contract in that it has an end date. For example, at-will contracts continue until you are fired or quit, while a fixed term contract only continues until the term expires. The main points to look at would be what they are classifying you as (employee vs contractor), the length of the term (so you know when the contract is up), and how to renew the contract or if there is an automatic renewal. It would also be good to double check the contract for termination clauses, as quitting may be more complicated under a fixed term contract. Ultimately, as with all contract matters it’s probably best to reach out to an attorney to review the document to get more specific answers to your concerns.

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