As Introduced

136th General Assembly

Regular Session S. B. No. 11

2025-2026

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.

(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.