In general, covenants not to compete involve an employee in the state of Kentucky who agrees not to work for competitors of their employer when they leave the company. Such covenants are frequently called "non-compete" clauses". An employee who signs them either does so as a condition to employment or they may receive compensation for the agreement.
When are Covenants not to Compete Unenforceable?
Whether a given judge will enforce a non-compete agreement is difficult to know in advance. Although the interests of employers are important, courts in Kentucky also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an excessively long period of time or if they cover an unreasonably large geographic area around Monticello.
The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Lastly, the employer must have a valid business interest behind its motivation for mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before you sign any provisions that could restrict your rights, you may consider hiring a Monticello, Kentucky attorney who can review the covenant. The attorney can negotiate modifications to the contract if they are needed, and can draft a new clause which is acceptable to the parties involved. Attorneys can provide valuable counseling to employers who are considering suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.