Kentucky Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in Kentucky?

Yes. Non-compete agreements are enforceable in Kentucky as long as the contract meets certain requirements established by Kentucky courts and state statutes. All non-compete agreements must be reasonable to be enforceable.

According to the Kentucky Supreme Court, a non-compete agreement is reasonable when the terms of the contract are only as restrictive as necessary to provide fair protection to employers. In addition, a reasonable non-compete will not interfere with public interest or impose undue hardship on the employee.

How Long Does a Kentucky Non-Compete Agreement Last?

The maximum length of a non-compete agreement in Kentucky is not set by state statute but by past court rulings. Historically, courts have enforced non-compete agreements that last up to five years.

Longer non-compete durations can be considered but depending on the facts of the case or the type of work, the courts could strike down a non-compete with too long of a duration for being unreasonable.

How Do You Get Around a Non-Compete Agreement in Kentucky?

To get around a non-compete agreement in Kentucky, an employee will have to prove one of the following to the court:

  1. The non-compete agreement is unreasonable in duration.
  2. The terms violate public policy.
  3. The enforcement of the contract restricts the employee from earning a living.
  4. The agreement is unreasonable regarding geographic area.

Unlike other states which limit the geographic area that non-compete agreements can cover, Kentucky allows a wide-ranging geographic area for these contracts.

What Voids a Non-Compete Agreement in Kentucky?

A non-compete agreement in Kentucky will be void if there is not adequate consideration. In most states, continued employment is enough to meet the requirement for consideration for a non-compete. In Kentucky, the courts require additional consideration like:

  • Monetary payment
  • Promotion
  • Additional benefits

Without this additional consideration, a non-compete in Kentucky will be void.

Frequently Asked Questions

How do I hire a lawyer to draft a noncompete agreement in Kentucky?

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DC L.

Managing Partner
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Nashville, Tennessee
5 Yrs Experience
Licensed in KY IN, TN
University of Louisville, Louis D. Brandeis School of Law

Darren Craig ("DC") Lamb is the Founder and Managing Partner of DCL Legal, AI, & Business Consulting, a Nashville-based law firm serving entrepreneurs, founders, and growing businesses as outside general counsel. Licensed in TN, KY, and IN, Darren previously served as lead associate at Wilson Elser (AmLaw 200), handling all litigation for a Fortune 500 e-commerce company across KY, IN, and TN, and managing complex coverage matters for a leading international insurance market. DCL Legal focuses on business litigation, commercial contracts, corporate governance, AI & technology advisory, and fractional general counsel engagements — delivering executive-level legal guidance without the cost of full-time in-house counsel.

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Garrett M.

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Licensed in KY OH
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Attorney Garrett Mayleben's practice is focused on representing small businesses and the working people that make them profitable. He represents companies in structuring and negotiating merger, acquisition, and real estate transactions; guides emerging companies through the startup phase; and consults with business owners on corporate governance matters. Garrett also practices in employment law, copyright and trademark law, and civil litigation. Though industry agnostic, Garrett has particular experience representing medical, dental, veterinary, and chiropractic practices in various business transactions, transitions, and the structuring of related management service organizations (MSOs).

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Elisher W.

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Attorney licensed in Kentucky and Ohio with four years experience in real estate transactional law (commercial and residential), litigation, construction law, and IP licensing. I have substantial experience in drafting and reviewing contracts as complex as billion dollar mining financing down to simple settlement agreements.

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Dillon N.

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Chicago, IL
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University of Kentucky College of Law

My practice has involved a wide range of legal matters from commercial real estate, finance and international business transactions to litigation matters including commercial disputes, real estate, employment, and medical malpractice. Proficient in Spanish, I graduated from the University of Kentucky College of Law, the Patterson School of Diplomacy and International Commerce, and the University of Southern California. Prior to my legal career, I sought diverse professional experiences. After graduating from college, I orchestrated my own volunteering experience in southern Peru with a small non-profit organization. Later I gained valuable professional experience as part of a U.S. Senate campaign, and after that I joined the public policy team at Greater Louisville, Inc., Louisville's Chamber of Commerce affiliate. Prior to law school, I embarked on a month long excursion with the Northern Outdoor Leadership School in Alaska, which gave me a new found appreciation for sustainability.

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Nichole C.

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Licensed attorney in KY and Federally JD, 2006 University of Louisville MBA, 2006 University of Louisville BS, 2001 Berea College Licensed Title Agent Arbitrator and Certified Mediator Business Consultant Adjunct Professor, Law and Business

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Contracts

Noncompete Agreement

Florida

Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

Read 1 attorney answer>

Employment

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Asked on Jul 25, 2023

Noncompete agreement and public policy?

I recently accepted a job offer with a new employer who asked me to sign a noncompete agreement. I am concerned that the agreement may not be in line with public policy and wanted to get a professional opinion from a lawyer to make sure I am not putting myself in a difficult situation.

Merry K.

Answered Aug 8, 2023

If you are in Washington State, where I'm licensed, as opposed to D.C., please let me know what kind of help you are looking for - have you already signed the agreement? I've been a WA State attorney for nearly 38 years, and specialize in employment law.

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Noncompete Agreement

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Asked on Jul 13, 2023

Can a noncompete agreement be waived?

I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.

Thomas L.

Answered Jul 21, 2023

Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

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Business Contracts

Noncompete Agreement

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Asked on May 21, 2023

Noncompete agreement time restrictions?

I am an entrepreneur who recently signed a Noncompete Agreement with a potential business partner, and I am looking to gain a better understanding of the time restrictions that are in place. I am concerned that the terms of the agreement may prevent me from pursuing other opportunities in the future and want to make sure I am aware of all the restrictions before making any decisions.

Gagandeep K.

Answered May 30, 2023

The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.

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Noncompete Agreement

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Asked on Jul 6, 2023

How to draft a noncompete agreement?

I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.

Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

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