In the case of Total Quality Logistics, L.L.C. v. Leonard, 2023-Ohio-2271, an appellate court held that the employee violated a non-compete agreement when the employee was placed on paid administrative leave by a competitor despite the employee not providing any services to the competitor during the administrative leave.
In this case, the employee argued that the employee did not work for the competitor in the year that the employee was on administrative leave, so there was no violation of the non-compete agreement. In response, the company argued that the employee was still being paid by the competitor, so the employee did violate the non-compete agreement. The appellate court agreed with the company.
In support of its decision in favor of the company, the appellate court explained that, should competitors be allowed to hire employees from a non-compete agreement simply by placing the employees on administrative leave for the duration, the company would lose the benefit of investing time and training to employees. The appellate court further explained that the employee would not have been eligible for administrative leave had the employee not been “employed” by the competitor in violation of the non-compete agreement.
To read this case, click here.
Authors: Matthew John Markling and the McGown & Markling Team.
Note: This blog entry does not constitute – nor does it contain – legal advice. Legal jurisprudence is like the always-changing Midwestern weather. As a result, this single blog entry cannot substitute for consultation with a McGown & Markling attorney. If legal advice is needed with respect to a specific factual situation, please feel free to contact a McGown & Markling attorney.