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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 11
2025-2026
Senators Blessing, DeMora
Cosponsor: Senator Smith
A
BILL
To
enact sections 4119.01, 4119.02, 4119.03, and 4119.04 of the Revised
Code
to
prohibit agreements that restrain engaging in a lawful profession or
business after the conclusion of an employment relationship.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 4119.01, 4119.02, 4119.03, and 4119.04 of the Revised Code
be enacted to read as follows:
Sec.
4119.01.
As
used in this chapter:
(A)
"Employer" means a person who hires or contracts with a
worker to perform services for the person.
(B)(1)
"Worker" means an individual who provides services for an
employer.
(2)
"Worker" includes an employee, independent contractor,
extern, intern, volunteer, apprentice, sole proprietor who provides
service to a client or customer, and an individual who provides
service through a business or nonprofit entity or association.
Sec.
4119.02.
(A)
Beginning on the effective date of this section, no employer shall
enter into, attempt to enter into, present to a worker or prospective
worker as a term of hire, or attempt to enforce an agreement, or part
of an agreement, that prohibits the worker from, penalizes the worker
for, or functions to prevent the worker from seeking or accepting
work with a person, or operating a business, after the conclusion of
the relationship between the employer and worker, including any of
the following:
(1)
An agreement that the worker will not work for another employer for a
specified period of time, not work in a specified geographical area,
or not work for another employer in a capacity similar to the
worker's work for the employer;
(2)
An agreement that requires the worker to pay for lost profits, lost
goodwill, or liquidated damages because the worker terminates the
work relationship;
(3)
An agreement that imposes a fee or cost on a worker for terminating
the work relationship, including a replacement hire fee, a retraining
fee, reimbursement for immigration or visa-related costs, or bondage
fee;
(4)
An agreement that requires a worker who terminates the work
relationship to reimburse the employer for an expense incurred by the
employer during the relationship for training, orientation,
evaluation, or other service intended to provide the worker with
skills to perform the work or to improve performance.
(B)
An agreement, or part of an agreement, between an employer and worker
entered into, modified, or extended on or after the effective date of
this section that is prohibited under division (A) of this section is
void.
(C)
This section does not do either of the following:
(1)
Prevent a person or federal, state, or local government agency from
paying or forgiving a debt or from providing other benefits to a
person after the person completes a specified time period of
employment or work relationship with an employer or other entity;
(2)
Limit or prohibit any loan repayment assistance program or loan
forgiveness program provided by a federal, state, or local government
agency.
Sec.
4119.03.
(A)
Except as provided in division (B) of this section, with respect to
any agreement between an employer and worker entered into, modified,
or extended on or after the effective date of this section, both of
the following apply:
(1)
No employer shall require, as a condition of employment, a worker who
primarily resides and does business in this state to agree to a
provision that does either of the following:
(a)
Requires the worker to adjudicate a claim arising in this state in a
venue or forum that is outside of this state;
(b)
Deprives the worker of any substantive legal protection provided by
the laws of this state with respect to a controversy arising in this
state.
(2)
Any agreement between an employer and worker that violates division
(A)(1) of this section is void, and the matter shall be adjudicated
in this state and the laws of this state shall govern the dispute.
(B)
This section does not apply to an agreement between an employer and
worker who is individually represented by legal counsel in
negotiating the terms of the agreement and, at the option of the
worker, designates either the venue or forum in which a controversy
arising from the agreement may be adjudicated or the choice of law to
be applied. For purposes of this division, a worker is not
individually represented by legal counsel if the counsel is paid for
by, or was selected based on the suggestion of, the employer.
Sec.
4119.04.
(A)
A worker or prospective worker may bring a civil action against an
employer for a violation of this chapter in a court of competent
jurisdiction. In the event a worker or prospective worker prevails in
the action, the court shall award costs and reasonable attorney's
fees to the worker or prospective worker. The court may award any of
the following, as appropriate:
(1)
Actual damages;
(2)
Punitive damages not to exceed five thousand dollars;
(3)
Injunctive relief.
(B)(1)
A worker or prospective worker may file a complaint with the attorney
general alleging a violation of this chapter. The attorney general
shall investigate all complaints filed with the attorney general. If,
after investigating a complaint, the attorney general determines that
it is likely a violation of this chapter has occurred, the attorney
general may bring an action described in division (A) of this section
against the employer on behalf of the worker or prospective worker
who is the subject of the complaint. In the event the attorney
general prevails in the action, the court shall award costs and
reasonable attorney's fees to the attorney general and any other
remedy described in division (A) of this section to the worker or
prospective worker. The attorney general shall notify the director of
commerce of any complaint submitted to the attorney general that may
constitute a violation of this chapter.
(2)
A worker or prospective worker also may file a complaint with the
director of commerce alleging a violation of this chapter. The
director shall investigate all complaints filed with the director.
If, after investigating a complaint, the director determines that it
is likely a violation of this chapter has occurred, the director
shall forward the complaint and the results of investigation to the
attorney general. The attorney general may bring an action described
in division (A) of this section against the employer on behalf of the
worker or prospective worker who is the subject of the complaint.
(C)
The attorney general and the director of commerce shall enter into a
written agreement coordinating their responsibilities with respect to
this section.
(D)
This section does not limit the rights of any person, or the
obligations of any covered person, under any state or federal law
that directly and specifically regulates the manner, content, or
terms and conditions of any financial transaction, or any related
account, product, or service, with respect to a consumer.