As Introduced
135th General Assembly
Regular Session S. B. No. 339
2023-2024
Senators Blessing, DeMora
A BILL
To enact sections 4119.01, 4119.02, 4119.03, and 1
4119.04 of the Revised Code to prohibit 2
agreements that restrain engaging in a lawful 3
profession or business after the conclusion of 4
an employment relationship. 5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4119.01, 4119.02, 4119.03, and 6
4119.04 of the Revised Code be enacted to read as follows: 7
Sec. 4119.01. As used in this chapter: 8
(A) "Employer" means a person who hires or contracts with 9
a worker to perform services for the person. 10
(B)(1) "Worker" means an individual who provides services 11
for an employer. 12
(2) "Worker" includes an employee, independent contractor, 13
extern, intern, volunteer, apprentice, sole proprietor who 14
provides service to a client or customer, and an individual who 15
provides service through a business or nonprofit entity or 16
association. 17
Sec. 4119.02. (A) Beginning on the effective date of this 18
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As Introduced
section, no employer shall enter into, attempt to enter into, 19
present to a worker or prospective worker as a term of hire, or 20
attempt to enforce an agreement, or part of an agreement, that 21
prohibits the worker from, penalizes the worker for, or 22
functions to prevent the worker from seeking or accepting work 23
with a person, or operating a business, after the conclusion of 24
the relationship between the employer and worker, including any 25
of the following: 26
(1) An agreement that the worker will not work for another 27
employer for a specified period of time, not work in a specified 28
geographical area, or not work for another employer in a 29
capacity similar to the worker's work for the employer; 30
(2) An agreement that requires the worker to pay for lost 31
profits, lost goodwill, or liquidated damages because the worker 32
terminates the work relationship; 33
(3) An agreement that imposes a fee or cost on a worker 34
for terminating the work relationship, including a replacement 35
hire fee, a retraining fee, reimbursement for immigration or 36
visa-related costs, or bondage fee; 37
(4) An agreement that requires a worker who terminates the 38
work relationship to reimburse the employer for an expense 39
incurred by the employer during the relationship for training, 40
orientation, evaluation, or other service intended to provide 41
the worker with skills to perform the work or to improve 42
performance. 43
(B) An agreement, or part of an agreement, between an 44
employer and worker entered into, modified, or extended on or 45
after the effective date of this section that is prohibited 46
under division (A) of this section is void. 47
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As Introduced
(C) This section does not do either of the following: 48
(1) Prevent a person or federal, state, or local 49
government agency from paying or forgiving a debt or from 50
providing other benefits to a person after the person completes 51
a specified time period of employment or work relationship with 52
an employer or other entity; 53
(2) Limit or prohibit any loan repayment assistance 54
program or loan forgiveness program provided by a federal, 55
state, or local government agency. 56
Sec. 4119.03. (A) Except as provided in division (B) of 57
this section, with respect to any agreement between an employer 58
and worker entered into, modified, or extended on or after the 59
effective date of this section, both of the following apply: 60
(1) No employer shall require, as a condition of 61
employment, a worker who primarily resides and does business in 62
this state to agree to a provision that does either of the 63
following: 64
(a) Requires the worker to adjudicate a claim arising in 65
this state in a venue or forum that is outside of this state; 66
(b) Deprives the worker of any substantive legal 67
protection provided by the laws of this state with respect to a 68
controversy arising in this state. 69
(2) Any agreement between an employer and worker that 70
violates division (A)(1) of this section is void, and the matter 71
shall be adjudicated in this state and the laws of this state 72
shall govern the dispute. 73
(B) This section does not apply to an agreement between an 74
employer and worker who is individually represented by legal 75
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As Introduced
counsel in negotiating the terms of the agreement and, at the 76
option of the worker, designates either the venue or forum in 77
which a controversy arising from the agreement may be 78
adjudicated or the choice of law to be applied. For purposes of 79
this division, a worker is not individually represented by legal 80
counsel if the counsel is paid for by, or was selected based on 81
the suggestion of, the employer. 82
Sec. 4119.04. (A) A worker or prospective worker may bring 83
a civil action against an employer for a violation of this 84
chapter in a court of competent jurisdiction. In the event a 85
worker or prospective worker prevails in the action, the court 86
shall award costs and reasonable attorney's fees to the worker 87
or prospective worker. The court may award any of the following, 88
as appropriate: 89
(1) Actual damages; 90
(2) Punitive damages not to exceed five thousand dollars; 91
(3) Injunctive relief. 92
(B)(1) A worker or prospective worker may file a complaint 93
with the attorney general alleging a violation of this chapter. 94
The attorney general shall investigate all complaints filed with 95
the attorney general. If, after investigating a complaint, the 96
attorney general determines that it is likely a violation of 97
this chapter has occurred, the attorney general may bring an 98
action described in division (A) of this section against the 99
employer on behalf of the worker or prospective worker who is 100
the subject of the complaint. In the event the attorney general 101
prevails in the action, the court shall award costs and 102
reasonable attorney's fees to the attorney general and any other 103
remedy described in division (A) of this section to the worker 104
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or prospective worker. The attorney general shall notify the 105
director of commerce of any complaint submitted to the attorney 106
general that may constitute a violation of this chapter. 107
(2) A worker or prospective worker also may file a 108
complaint with the director of commerce alleging a violation of 109
this chapter. The director shall investigate all complaints 110
filed with the director. If, after investigating a complaint, 111
the director determines that it is likely a violation of this 112
chapter has occurred, the director shall forward the complaint 113
and the results of investigation to the attorney general. The 114
attorney general may bring an action described in division (A) 115
of this section against the employer on behalf of the worker or 116
prospective worker who is the subject of the complaint. 117
(C) The attorney general and the director of commerce 118
shall enter into a written agreement coordinating their 119
responsibilities with respect to this section. 120
(D) This section does not limit the rights of any person, 121
or the obligations of any covered person, under any state or 122
federal law that directly and specifically regulates the manner, 123
content, or terms and conditions of any financial transaction, 124
or any related account, product, or service, with respect to a 125
consumer. 126