Non-Compete Agreements in 2026: What Ohio Workers Need to Know

For a brief moment, it looked like non-compete agreements were on their way out nationwide. The Federal Trade Commission passed a sweeping rule in 2024 that would have banned most non-competes across the country. Then the courts stepped in, and by September 2025, the FTC had formally abandoned its appeal, leaving the rule dead. So where does that leave Ohio workers who are bound by a non-compete today?

What Happened to the FTC Ban?

In April 2024, the FTC voted to implement a final rule that would have prohibited employers from entering into or enforcing non-compete agreements with most workers. The rule was ambitious, it would have invalidated tens of millions of existing non-competes overnight and reshaped the employment landscape nationwide.

The rule never took effect. A federal district court in Texas blocked it before its effective date, finding that the FTC lacked the statutory authority to issue such a sweeping rule. The FTC appealed, but after the change in administration, the agency reversed course. In September 2025, the FTC formally dismissed its appeals, and the rule was officially vacated.

The result: there is no federal ban on non-compete agreements. The battlefield has shifted back entirely to the states.

Where Ohio Stands

Ohio has not enacted a ban on non-compete agreements. Under Ohio law, non-competes are enforceable, but only if they are reasonable. Courts evaluate Ohio non-competes under a multi-factor test that considers:

• Whether the restriction is no greater than required to protect the employer's legitimate business interest
• Whether it imposes undue hardship on the employee
• Whether it causes harm to the public
• The geographic scope and duration of the restriction
• The nature of the employee's role and access to confidential information

Ohio courts have historically been willing to enforce non-competes, but they also have the power to modify, or "blue pencil", agreements they find overly broad rather than throwing them out entirely. This means even a non-compete that seems unreasonable on its face may be enforced in a narrowed form.

What the FTC Is Still Doing

While the nationwide ban is gone, the FTC has made clear that it is not done with non-competes entirely. The agency has signaled a shift toward targeted, case-by-case enforcement under Section 5 of the FTC Act, which prohibits unfair methods of competition. In September 2025, the FTC brought an enforcement action against a large employer that required virtually all of its workers, including hourly employees with no access to trade secrets or customer relationships, to sign broad non-competes. The FTC is also actively soliciting public input to guide future enforcement priorities.

The message is clear: sweeping, one-size-fits-all non-competes applied to low-wage workers remain on the FTC's radar even without a formal rule.

What This Means If You Have a Non-Compete

If you are an Ohio employee bound by a non-compete, or if you have been threatened with enforcement of one, there are several things worth knowing. You can also learn more about the employment law services we offer at Sobel Law Solutions.

• The agreement may not be as enforceable as your employer claims. Employers often overstate the reach of non-competes, and courts regularly refuse to enforce provisions that are overbroad.
• Context matters. How the agreement was presented, what you received in exchange for signing, and what your actual role was all affect enforceability.
• You have options. Depending on the facts, it may be possible to challenge the agreement, negotiate a release, or limit its scope.
• The cost of ignoring it can be significant. Employers can seek injunctions and monetary damages. Taking the agreement seriously, and getting legal advice before acting, is important.

The Bottom Line

The promise of a federal non-compete ban has come and gone, at least for now. Ohio workers remain subject to state law, which allows non-competes when they are reasonably tailored. But reasonable is a meaningful standard, and many non-competes employers use in practice go further than Ohio courts will allow.

If you have questions about a non-compete agreement, whether you are facing enforcement, considering a new job, or negotiating a departure, feel free to reach out. Initial consultations are free.