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 often called "non-compete" clauses". An employee who signs them either does so as a condition to employment or they can 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 discern in advance. Even though the interests of an employer are significant, Kentucky courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Paris that is unreasonably broad.
Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Lastly, the covenant not to compete must have a valid business purpose which is behind the employer's motivation for requiring the agreement.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you might want to hire a Paris, Kentucky attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or might even draft a new one that is acceptable to both parties Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.