Kentucky Covenant Not to Compete for a Construction Business - Noncompetition

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US-0398-WG
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Covenant Not to Compete for a Construction Business - Noncompetition
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FAQ

Russell Beck: So there is no federal law on noncompetes; every state has its own noncompete law. Some states, like California, don't enforce noncompetes at all; they favor employee mobility over the protection of former employer's information.

Existing employment relationship with no new consideration In 2014, the Kentucky Supreme Court made it clear that when an employer seeks to impose a non-compete agreement on an existing employee without granting additional consideration, the agreement is not enforceable.

Courts consider several elements when determining the reasonableness of a covenant not to compete, including (1) the time and territory encompassed by the covenant, (2) the territory in which the employee worked, (3) the area in which the employer operated, (4) the nature of the business and (5) the nature of the

It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

Non-competes remain legal, valid and enforceable in Kentucky if they meet certain requirements. With no Kentucky statute on point, judges have established rules through state common law in court opinions.

The well-known general rule is that a covenant not to compete is only enforceable if its terms are reasonable and necessary to protect the legitimate business interests of the employer.

A covenant not to compete will be deemed valid if it only restricts the employee's opportunity to compete while they remain employed with the employer requiring the covenant, but imposes no restrictions on the employee once they separate from the employment.

A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area. The time and geographical restrictions are usually straightforward; the limitation on work is a little more complex.

By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.

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Kentucky Covenant Not to Compete for a Construction Business - Noncompetition