The bill, proposed in early February, is sponsored by Ohio Sens. Louis Blessing, a Republican, and Bill DeMora, a Democrat, and would ban noncompete agreements broadly. The bill includes several exceptions for employees with individual legal representation, such as executives, and provisions to ensure it does not conflict with student loan repayment programs.
Opponents, largely represented by business and industry groups, argued that without post-employment restrictions, small employers would face a disadvantage with large ones, particularly rural employers.
They also noted that employers who offer benefits like relocation, tuition reimbursement or visa sponsorship may be more hesitant to do so if the bill becomes law. Hospital representatives said that it could be more difficult to offer specialty care due to front-end investments in equipment and support staff, according to the report. Payers argued that noncompetes are needed when an agency sells its business to ensure the seller does not immediately open a competing agency.
Supporters of the bill argued that noncompetes stifle mobility and entrepreneurship. Last month, Mr. Blessing argued that noncompete contracts reduce wages and suppress a free market.
