Employment contracts often contain certain restrictions about what you can do, both during your job and after you leave. These restrictions are supposedly to protect your employer’s business interests. Sometimes that legitimate, and other times it is overly restrictive. Either way, a non-compete or non-solicitation clause in your employment contract is a big deal, and one you should have an attorney review before signing anything. If you are already subject to one, and need help handling it, an experienced attorney can make a major difference.
The employment attorneys at Abney Law can help you handle non-compete and non-solicitation clauses in Kentucky employment contracts. Get in touch with us to learn how we can help.
What Is a Non‑Compete Clause?
A non-compete clause tells you the employee that you can’t leave your current company and immediately go work for a competitor, or start your own competing business. At least, that’s the simple version of it. It can be much more technical, and should be more limited in scope than a blanket ban on future conduct.
They must also be designed to protect legitimate business interests, such as:
- Trade secrets
- Confidential information
- Customer relationships
- Specialized training or investment in the employee
- Business goodwill
Kentucky law does allow for enforcement of these agreements. However, they have to meet specific legal standards. The courts can also balance the employer’s needs with the employee’s rights going forward after terminating the employment relationship.
What Makes a Non-Compete Enforceable?
A Kentucky court will usually uphold a non-compete if:
- The non-compete is limited in its duration
- It has a reasonable geographic limitation to the non-compete
- The provision is narrowly tailored to protect only legitimate business interests, and doesn’t go “too far” in what it seeks to protect
- The agreement is supported by adequate consideration, or value
If a non‑compete clause is overly broad, the court might modify the clause or choose not to enforce it.
What Is a Non‑Solicitation Clause?
A non-solicitation clause is different. It doesn’t tell you where to work or not work, but just limits your actions after you leave your employment. It will usually prohibit:
- Soliciting former clients or customers
- Encouraging coworkers to leave the company
- Diverting business opportunities
- Using confidential client lists or proprietary information
Kentucky courts are often more likely to enforce these clauses, because they are more limited. However, the employer must still show that it is reasonably designed to protect their legitimate interests, or the clause may be unenforceable.
How Kentucky Courts Evaluate Restrictive Covenants
Kentucky does not follow a one‑size‑fits‑all rule. Instead, courts examine the specific facts of each case. Factors include:
- The employee’s role and access to confidential information
- The employer’s actual business footprint
- Whether the restriction prevents the employee from earning a livelihood
- Whether the employer provided adequate consideration
- The overall fairness of the agreement
Kentucky courts also consider whether the restriction protects a legitimate business interest or simply attempts to limit competition. Purely anti‑competitive clauses are unlikely to be enforced.
Consideration Requirements in Kentucky
One of the most important elements of enforceability is consideration. In Kentucky, a non‑compete or non‑solicitation clause must be supported by something of value. Examples may include:
- A signing bonus
- A promotion or raise
- Access to confidential information
- Specialized training
- Continued employment combined with additional benefits
If an employer asks an existing employee to sign a restrictive covenant without offering new consideration, the agreement may be unenforceable.
What Employees Should Know Before Signing
Employees should carefully review any restrictive covenant before signing. Key questions include:
- How long does the restriction last?
- What geographic areas are covered?
- Does the clause prevent me from working in my field?
- What clients or coworkers am I restricted from contacting?
- Did I receive adequate consideration?
Understanding these terms upfront can prevent disputes later.
Seek Help with Non-Compete and Non-Solicitation Clauses: Get In Touch with a Kentucky Employment Lawyer
Whether you are about to sign a new employment contract, or are dealing with enforcement issues on one you already signed, a lawyer is here to help. Non-compete clauses and non-solicitation agreements can have significant ramifications for you. Knowing if they are enforceable and what you can do about them can make a major difference in your life.
Let the skilled employment attorneys at Abney Law review your case. Contact us today for a consultation.