Non Compete Agreement Ky

These rules may seem discouraging, but they exist to protect workers from unscrupulous employers. As long as employers are reasonable, the law will support them. To be sure, you can consult a qualified and experienced procedural, business and work lawyer on legal matters related to contracts, employment, insurance, leasing, litigation, leasing or insurance, in accordance with Kentucky`s non-competition laws. There is no substitute for professional legal aid. At the law firm Patricia A. Abell, we understand the non-compete obligations created by Kentucky. Call us at 502.561.3455. Overall, these agreements must be concluded in good faith. Employers cannot use non-competition prohibitions to exploit an employee or to gain an unfair advantage in the market. While competition prohibitions protect trade secrets very effectively, the legal system gives a premium to the right of every person to earn a living. This is why a non-competition agreement under judicial review must overcome certain legal obstacles.

Second, the employer must offer the worker a benefit in exchange for a promise not to compete. A job offer conditional on the acceptance of a non-competition agreement probably fulfils this requirement, since the employee receives a job offer benefit in exchange for the promise not to compete. For workers hired prior to the implementation of a non-compete agreement, promotions or wage increases may meet the requirement of a benefit in return for their consent. What happens when an employee has received additional benefits of any kind in exchange for signing a non-competition clause? For example, an employee could benefit from promotion, better training or higher wages. Finally, workers should bear in mind that non-competition clauses are contracts to be entered into. When a new company buys out its current employer, it is likely that the new company has been granted the rights to enforce the non-compete agreement against the employee of the former company and has the power to take legal action against the terms of the original non-competition agreement. 1. the length of employment, both before and after the agreement was signed; Kentucky courts have always rigorously interpreted competition agreements between workers and employers against employers and workers.

This means that all ambiguities or other issues are resolved in an inability to compete agreement for the benefit of the employee. That`s why it`s always been important for Kentucky employers to pay attention to developing non-competitive agreements. This is still the case today, following a 2014 Kentucky Supreme Court case that significantly changed the requirements of non-compete agreements reached by Kentucky employees. In Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345, (Ky. 2014), the Tribunal found that “continued employment” is no longer sufficiently taken into account for workers who are required to sign non-compete agreements. The case marks a clear abandonment of Kentucky`s earlier jurisprudence.

In the future, employers would be well advised to review their existing non-competition agreements to ensure that Creech`s participation is not a problem if they need the assistance of a court to enforce their rights. Non-competition agreements must be reasonable. They cannot last too long, cover too much geographic area or prohibit former employees from operating too many types of businesses.

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