The purpose of this article is to discuss: (1) historical case
law and treatment of covenants governing competition; (2) summarize
and provide an analysis of the Federal Trade Commission's April
23, 2024 ruling on covenants governing competition (the
"Rule"); and (3) the best practice for employers and
practitioners to enforce covenants governing competition in a
post-FTC ruling landscape.
While covenants governing competition have become an issue in
today's political landscape, Ohio generally favored reasonable
restrictive covenants before the FTC's seminal ruling earlier
this year. Rogers v. Runfola & Assocs., 57 Ohio St.3d
5, 8, 565 N.E.2d 540 (1991). For nearly 50 years, "[i]n
determining the validity of a covenant or agreement in restraint of
trade ... a covenant restraining an employee from competing with
his former employer upon termination of employment is reasonable if
it is [1.] no greater than is required for the protection of the
employer, [2.] does not
