Non-compete Clause
(KY)

Summary

This is an employee non-compete clause (also known as a non-competition clause or covenant not to compete) intended for use in an agreement that is subject to Kentucky law. This clause includes practical guidance, drafting notes, and alternate and optional clauses. A traditional non-compete prohibits competing activities by an employee, typically for a specified period and often within a designated geographical area. Such covenants raise restraint-of-trade and other public policy concerns, and many states restrict their use by statute or common law. In Kentucky, enforceability is a matter of common law. See the drafting notes for state law guidance and other matters. For additional information on Kentucky law concerning non-compete agreements, see Restrictive Covenants (KY). For additional boilerplate terms to consider when incorporating a non-compete into an agreement, see Non-compete, Customer and Employee Non-solicitation, and Confidentiality Agreement (KY). For a full listing of key content covering restrictive covenant considerations, see Restrictive Covenants Resource Kit. For additional information on non-competition agreements generally, see Non-compete Agreements: Key Negotiation, Drafting, and Legal Issues; Non-compete Agreements Checklist (Best Drafting Practices for Employers); Restrictive Covenant Basics, Including Adequate Consideration, Protectable Interests, Geographic and Time Restrictions, and Permissible Scope; Restrictive Covenants: Drafting Common Provisions; and Non-compete and Non-solicitation Agreements Checklist (Addressing Suspected Violations). For information on state laws concerning non-compete agreements, see Non-competes and Trade Secret Protection State Practice Notes Chart. For state law compliant non-compete agreements, see Non-competes and Trade Secret Protection State Expert Forms Chart.