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A non-compete agreement in the state of Kentucky is a legal document using restrictive covenants that companies use to ensure that their at-will employees refrain from sharing their trade secrets and other confidential information once their employment comes to an end. A non-competition agreement can be used to prevent the employee from working for or with a competitor once their employment with their former employer comes to an end. Non-compete agreements ensure that employees are held responsible should they breach this agreement.
A non-compete agreement must provide sufficient consideration for the former employee when they enter into the agreement. Because this is a type of employment contract (also known as an employment agreement), employers should seek legal advice from a law firm practicing employment law. This ensures that their business interests are protected, improves the enforceability of their contract in Kentucky courts, and ensures that they are providing adequate consideration according to Kentucky law.
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There are no specific laws that enforce or restrict non-compete agreements; however, Kentucky will uphold and enforce a non-compete as long as it is reasonable in time, scope, and geographic restriction. Kentucky courts generally interpret non-compete agreements in favor of former employees. The Kentucky Supreme Court held in Charles T. Creech, Inc. v. Brown that continued employment is not adequate consideration. Kentucky courts require that these agreements be reasonable in the period of time and in the geographic area limitation.
Protect your Kentucky business by also using a Kentucky non-disclosure agreement form. Download a Kentucky non-disclosure agreement form now!
To write a Kentucky non-compete agreement, include the following clauses:
The parties must sign and print their names. The signatures must be dated. Each party should receive a copy of the executed document for their records.
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