Kentucky enforces non-compete agreements under common law, applying a reasonableness test focused on the employer's legitimate business interest, the scope of restriction, and the hardship to the employee. Kentucky's approach is moderately employer-friendly but with significant protections — particularly on consideration for mid-employment covenants, where the Kentucky Supreme Court has held that continued employment alone is generally insufficient. The leading Kentucky decision is Hammons v. Big Sandy Claims Service, Inc., 567 S.W.2d 313 (Ky. 1978), and the consideration framework comes from Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014). Kentucky courts blue-pencil overbroad covenants in appropriate cases.
What is a Enforceability?
A Kentucky non-compete is a contractual restriction on post-employment competitive activity, enforceable if it is reasonable in time, geographic scope, and scope of activity, supported by adequate consideration, and protects a legitimate business interest. Kentucky courts assess reasonableness against the protectable interest — customer relationships, trade secrets, specialized training, or confidential information. The Kentucky Supreme Court's decision in Charles T. Creech, Inc. v. Brown clarified that continued at-will employment is not adequate consideration for a mid-employment non-compete unless accompanied by additional benefit. Kentucky has no specific statute governing employment non-competes.
Red flags to watch for
Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014) held that continued at-will employment is not adequate consideration for a non-compete signed after the start of employment. A bonus, raise, promotion, or new benefit must accompany the covenant.
Kentucky courts uphold 1-2 year restrictions for employees with customer relationships, but rarely longer. A 3-year or 5-year restriction will be narrowed or struck.
Kentucky requires geographic scope to be tied to where the employer does business or where the employee worked. A statewide or multi-state restriction for a local employer will be narrowed.
Kentucky requires the covenant to protect a legitimate business interest. Protection from ordinary competition is not enforceable.
Kentucky non-solicits should be limited to customers the employee actually serviced or had material contact with. Restrictions covering the entire customer base will be narrowed.
Kentucky courts narrow or strike vague activity scope language. The restriction must specifically identify the activities prohibited.
Kentucky public policy may invalidate forum selection clauses that try to send employment disputes to states with more employer-friendly non-compete law.
Your legal rights
Kentucky non-compete enforcement is governed by common law. Leading cases include Hammons v. Big Sandy Claims Service, Inc., 567 S.W.2d 313 (Ky. 1978), Hodges v. Todd, 698 S.W.2d 317 (Ky. App. 1985), and Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014). Kentucky courts may blue-pencil overbroad covenants where appropriate. The Kentucky Uniform Trade Secrets Act (KRS 365.880 et seq.) provides independent trade secret protection. Kentucky has no statutory framework specifically governing employment non-competes, and assessment is fact-specific under common law.
Questions to ask before you sign
- 1What specific consideration — beyond continued at-will employment — was provided for signing this non-compete?
- 2What legitimate business interest does the restriction protect, and is it tied to your actual role?
- 3Is the duration 2 years or less, and how does it align with industry practice?
- 4Is the geographic scope tied to the territory where you actually worked?
- 5Are the restricted activities described specifically, or is the scope vague?
- 6If this is a non-solicit, is it limited to customers you had material contact with?
- 7Does any forum selection clause attempt to send disputes outside Kentucky?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.