In October 2012, the Ohio Supreme Court issued an opinion and held that a company does not cease to exist after a merger but instead is absorbed and becomes a part of the successor company. Based on this holding, the Court explained that a noncompete agreement acquired in a merger may be enforced “as if [the new employer] stepped into the shoes” of the original company.

An employer and employee can agree to submit most job-related disputes, including claims for wrongful discharge and discrimination, to binding arbitration. Some employers view arbitration as a faster, less expensive alternative to court, and prefer to have their case decided by an arbitrator rather than a potentially sympathetic jury.

The issue of whether a non-compete agreement is enforceable is frequently litigated. Typically, non-compete cases turn on whether the agreement’s restrictions are reasonable in terms of duration and geographical scope. However, the First District Court of Appeals, which is located in Hamilton County, recently considered a different issue involving a non-compete — whether a non-compete agreement is enforceable after the initial employer merges with another company and the employee continues to work for that new company?